Arizona Taxes the Human Condition
- Jan 4, 2013 | Gail Cole
The Arizona Department of Revenue has released an advisory tax ruling regarding the taxation of renting and servicing portable toilets. An ironist might comment on the type of state that taxes the privy, but Arizona is not alone in taxing the human condition.
According to the tax ruling, "[a] person engaged in the business of renting and servicing portable toilets is subject to Arizona's transaction privilege tax under the personal property rental classification." The personal property rental classification: A.A.C. R15-5-1502(D) clarifies that income "derived from the servicing or maintenance of the rented toilets is subject to the transaction privilege tax under this classification."
No Exemption for Portable Toilet Rentals or Services
Furthermore, there is no exemption or deduction for "installation, labor, maintenance, pick-up, delivery, or other services associated with the business of renting portable toilets." This is true for anyone in the business of renting them, even for "a prime contractor or subcontractor."
"A contractor cannot provide a prime contractor's certificate or an other exemption certificate to exempt the lessor's income from the transaction privilege tax under the personal property rental classification." (TPR 12-1)
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