HOUSE BILL 2290

REFERENCE TITLE:
TPT; sourcing; business location; receipt

State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026

HOUSE BILL 2290

Introduced by
Representative Olson

AN ACT
AMENDING SECTION 42-5040, ARIZONA REVISED STATUTES; RELATING TO TRANSACTION PRIVILEGE TAX.

(TEXT OF BILL BEGINS ON NEXT PAGE)

1. Be it enacted by the Legislature of the State of Arizona:

2. Section 1. Section 42-5040, Arizona Revised Statutes, is amended to

3. read:

4. 42-5040. Sourcing of certain transactions involving tangible

5. personal property; definitions

6. A. Except as provided in section 42-5075, retail sales of tangible

7. personal property shall be sourced as follows:

8. 1. To the seller's business location if the seller receives the

9. order at a business location in this state.

10. 2. Except as provided in section 42-5008.01, to the purchaser's

11. location in this state if the seller receives the order at a business

12. location outside this state or, if there is no delivery address, to the

13. purchaser's billing address.

14. B. A shared vehicle transaction shall be sourced as follows:

15. 1. To the permanent street address of the registered shared vehicle

16. owner if the shared vehicle is registered in this state.

17. 2. To the street address in this state where the shared vehicle

18. owner resides while in this state if the shared vehicle is registered in

19. another state or country.

20. 3. To the location of the shared vehicle at the car sharing start

21. time if the shared vehicle owner does not reside in this state and the

22. shared vehicle is registered in another state or country.

23. C. For the purposes of subsection A of this section, an order is

24. received when all of the information necessary to accept the order has

25. been received by or on behalf of the seller AT A BUSINESS LOCATION OF THE

26. SELLER, regardless of where the order is accepted or approved. The place

27. of business or residence of the purchaser OR THE LOCATION OF SERVERS USED

28. TO TRANSMIT THE INFORMATION NECESSARY TO ACCEPT THE ORDER TO A BUSINESS

29. LOCATION does not determine where the order is received.

30. D. The gross receipts from leasing or renting tangible personal

31. property shall be sourced as follows:

32. 1. To the lessor's business location if the lessor has a business

33. location in this state.

34. 2. To the lessee's address if the lessor does not have a business

35. location in this state or, if there is no lessee's address, to the

36. lessee's billing address. The gross receipts are taxable when the

37. property is shipped, delivered or otherwise brought into this state for

38. use in this state.

39. E. For the purposes of this section:

40. 1. "BUSINESS LOCATION" MEANS A PHYSICAL SPACE THAT A PERSON CAN

41. OCCUPY, SUCH AS AN OFFICE OR A ROOM IN A HOUSE, AND IN WHICH BUSINESS IS

42. CARRIED ON.

43. 1. 2. "Car sharing start time" has the same meaning prescribed in

44. section 28-9601.

1. 2. 3. "Lessee's address" means the residential address of an

2. individual lessee and the primary business LOCATION address of any other

3. lessee.

4. 3. 4. "Lessor's business location" means the business LOCATION

5. address that appears on the lessor's transaction privilege tax license.

6. 4. 5. "Shared vehicle" has the same meaning prescribed in section

7. 28-9601.

8. 5. 6. "Shared vehicle owner" has the same meaning prescribed in

9. section 28-9601.

10. 6. 7. "Shared vehicle transaction" has the same meaning prescribed

11. in section 28-9601.

12. Sec. 2. Applicability

13. This act applies to taxable periods beginning on or after the first

14. day of the month following the general effective date.