| In
Arizona, "solar devices" (as defined either
explicitly in the Arizona Revised Statutes or
determined to be solar devices by the Arizona
Department of Commerce) can now be sold to Arizona
customers without having to charge state sales tax.
(legally called the transaction privilege tax). County
and city sales taxes still apply for those tax
authorities that collect their own sales taxes. This
is a result of House Bill 2433 passed in 1991.
Sales Tax
Exemption
The process and
requirements for the sales tax exemption are not
simple to use and apply to the retail seller of the
solar devices. The Arizona Energy Office (Arizona
Department of Commerce) has compiled a guide to
acceptable devices under the law. It is possible to
petition the Arizona Department of Commerce to add
additional items. A maximum of $5,000 of equipment per
system may be exempted under this law. Please note
that the sales tax exemption does not apply to
batteries, controls, etc. that are not part of the
system. For more information, contact The Arizona
Energy Office at 602-280-1402.
Dealer Information
Arizona dealers
must be registered with the Arizona Department of
Revenue (ADOR) as a solar device dealer before
utilizing the $5,000 state sales tax exemption.
Registration requires filing Arizona Department of
Revenue Form 6015 "Solar Energy Devices -
Application for Registration".
Another provision
of Arizona sales tax exemption may apply without value
limit to the basic power generating part of the system
(consisting of at least PV modules, structure, array
wiring and controls; the limits have not been clearly
defined). This further exemption requires the filling
out of form ADOR 5000 (ADOR60-2010 11/97) titled
"Transaction Privilege Tax Exemption
Certificate" and checking reason #16,
"Machinery, equipment or transmission lines used
directly in producing or transmitting electrical
power, but not including distribution."
Most cities have a
0.5 to 2% sales tax that still must be collected and
reported for either of these exemptions unless the
cities specifically exempt solar devices. For example,
in Tempe it will not be necessary to charge the 1.7%
Tempe city sales tax.
|
