The Arizona 5000 form is a Transaction Privilege Tax Exemption Certificate designed to document tax deductions or exemptions for specific transactions. This form must be completed by the purchaser and presented to the vendor at the time of sale. Vendors are required to retain this certificate to validate the exemption for the designated period.
Things You Should Do:
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When filling out and using the Arizona Form 5000, it is crucial to follow specific guidelines to ensure compliance and avoid penalties. Here are key takeaways to consider:
Understanding these points will help ensure proper use of the Arizona Form 5000 and protect against potential legal issues.
The Arizona 5000 form, also known as the Transaction Privilege Tax Exemption Certificate, is used to document and establish a basis for state and city tax deductions or exemptions. It must be filled out by the purchaser and provided to the vendor at the time of sale.
This form is intended for purchasers who are claiming a tax exemption for specific transactions. It is not to be used for resale claims; those should be made using Form 5000A. Additionally, non-TPT licensed contractors should use Form 5000M instead.
The form can be valid for a single transaction or for a specified period. While it is encouraged to limit the validity to 12 months, it can be accepted for up to 48 months if the vendor has documentation proving the TPT license is valid for each calendar year covered.
The form requires the following information:
No, only one category of exemption may be claimed on a single Arizona 5000 form. If multiple exemptions apply, separate forms must be completed for each exemption.
An incomplete Arizona 5000 form is not considered accepted in good faith. Vendors may be held liable for taxes if they accept an incomplete form, and purchasers may face penalties if they cannot prove the accuracy of the exemption claimed.
Common exemptions include:
Vendors are required to keep the Arizona 5000 form for single transactions or for the specified period noted on the form. They should also maintain any additional documentation that supports the exemption claimed by the purchaser.
Misuse of the form can lead to the purchaser being liable for the transaction privilege tax, penalties, and interest. Willful misuse may result in criminal penalties, including felony charges.
For a complete list of state and city exemptions, as well as business classes and codes, visit the Arizona Department of Revenue's website at www.azdor.gov/Forms/TransactionPrivilegeTax.aspx.
The Arizona Form 5000 is an important document for claiming tax exemptions related to transaction privilege tax (TPT). However, it is often used alongside other forms and documents that help clarify and support the claims made on the 5000 form. Below is a list of some of these commonly associated documents.
Understanding these forms and documents is crucial for businesses navigating tax exemptions in Arizona. Properly completing and submitting the Arizona Form 5000, along with the relevant supporting documents, can help ensure compliance and avoid potential tax liabilities.
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Arizona Form
Transaction Privilege Tax Exemption Certificate
5000
•Do not use Form 5000 to claim sale for resale. Use Form 5000A.
•Do not use Form 5000 if you are a non-TPT licensed contractor. Use Form 5000M.
This Certificate is prescribed by the Department of Revenue pursuant to A.R.S. § 42-5009. The purpose of the
Certificate is to document and establish a basis for
state and city tax deductions or exemptions. It is to be filled
out completely by the purchaser and furnished to
the vendor at the time of
the sale. The vendor shall retain
this Certificate for single transactions or
for the specified period as indicated
below. Incomplete Certificates are
not considered to be accepted in good faith. Only
one category of exemption may be claimed on a Certificate.
A. Purchaser’s Name and Address:
B. Check Applicable Box:
Purchaser’s Name
Single Transaction Certificate
Period From
Through
Address
(You must choose specific
dates for which the certificate will be valid. You
are encouraged not to exceed a 12 month period. However, a certificate will be
considered to be accepted in good faith for a period not to exceed 48 months if the
City
State
ZIP Code
vendor has documentation the TPT license is valid for each calendar year covered
in the certificate.)
Purchaser’s Email (Optional)
Purchaser’s Telephone Number (Optional)
Vendor’s Name
C. Choose one transaction type per Certificate:
Transactions with a Business
Transactions with Native Americans, Native American
Businesses and Tribal Governments (See reason #14.)
Arizona Transaction Privilege Tax (TPT) License Number
Tribal Business License Number OR Tribal Number
SSN / EIN
Name of Tribe
Tribal Government
Other Tax License Number
Transactions with a U.S. Government entity
(See reasons #9 and #10.)
If no license, provide reason:
Transaction with a Foreign Diplomat (See reason #15.)
Precise Nature of Purchaser’s Business.
D. Reason for Exemption:
Check the box indicating one of the more common exemptions provided below, or use Box 16 or 17 to cite the appropriate authority for another exemption (deduction). Refer to www.azdor.gov/Forms/TransactionPrivilegeTax.aspx for a complete list of state and city exemptions (deductions) and the business classes (codes) under which the deductions apply.
1. Tangible personal property to be leased or rented in the ordinary course of the purchaser’s licensed business.
2. Tangible personal property to be incorporated into a taxable contracting project, or a maintenance, repair, replacement or alteration project.
3. Food, drink, or condiments purchased by a restaurant business.
4. Pipes or valves four inches in diameter or greater to be used for transportation of oil, natural gas, artificial gas, water or coal slurry.
5. Railroad rolling stock, rails, ties, and signal control equipment.
6. Machinery and equipment sold or leased and used directly in the following business activities:
Manufacturing, processing or fabricating.
Job printing.
Refining or metallurgical operations.
Extraction of ores or minerals from the earth for commercial purposes.
Extraction of, or drilling for, oil or gas from the earth for commercial purposes.
7. Income Producing Capital Equipment to be leased. NOTE: Cities only - See M.C.T.C. 110 for definitions.
8. Food, drink or condiments for consumption within the premises of any prison, jail or other institution under the jurisdiction of the state department of corrections, the department of public safety, the department of juvenile corrections or a county sheriff. Food, drink, condiments or accessories purchased by a school district for consumption at a public school within the district during school hours.
9. Tangible personal property sold or leased directly to the United States Government or its departments or agencies by a manufacturer, modifier, assembler or repairer. (Retail, personal property rental and mining classifications only.)
10. Fifty percent of the gross proceeds or gross income from the sale of tangible personal property directly to the United States Government or its departments or agencies. (Retail classification only.)
Continued on page 2
ADOR 10308 (9/21)
Your Name (as shown on page 1)
Arizona Transaction Privilege Tax License Number
11. Electricity, natural gas or liquefied petroleum gas sold to a qualified manufacturing or smelting business. A manufacturing or smelting business that claims this exemption authorizes the release by the vendor of the information required to be provided to the Department of Revenue pursuant to A.R.S. § 42-5063(C)(6). NOTE: It is recommended that the purchaser attach the worksheet from the Transaction Privilege Procedure (TPP 18-1). (Utilities classification only.) (Not available for all Cities.)
12. Electricity or natural gas to a business that operates an international operations center in this state and that is certified by the Arizona Commerce Authority. NOTE: Certification must be attached. (Utilities classification only.) (Not available for all Cities.)
13. Computer data center equipment sold to the owner, operator or qualified colocation tenant of a computer data center that is certified by the Arizona Commerce Authority pursuant to A.R.S. § 41-1519. NOTE: Equipment must qualify and certification must be attached.
14. Sale or lease of tangible personal property to affiliated Native Americans if the order is placed from and delivered to the reservation. NOTE: The vendor shall retain adequate documentation to substantiate the transaction.
15. Foreign diplomat. NOTE: Limited to authorization on the U.S. Department of State Diplomatic Tax Exemption Card. The vendor shall retain a copy of the U.S. Department of State Diplomatic Tax Exemption Card and any other documentation issued by the U.S. Department of State. Motor vehicle purchases or leases must be pre-authorized by the Office of Foreign Missions (“OFM”). See “Vehicle Tax Exemption” at www.state.gov/ofm/tax/
16.*Other Deduction: Cite the Arizona Revised Statutes authority for the deduction. A.R.S. §
Description:
17.*Other Cities Deduction: Cite the Model City Tax Code authority for the deduction. M.C.T.C. § Description:
*Refer to www.azdor.gov/TransactionPrivilegeTax(TPT)/RatesandDeductionCodes.aspx for a complete list of state and city exemptions (deductions) and the business classes (codes) under which the deductions apply.
E.Describe the tangible personal property or service purchased or leased and its use below. (Use additional pages if needed.)
F. Certification
A vendor that has reason to believe that this Certificate is not accurate or complete will not be relieved of the burden of proving entitlement to the exemption. A vendor that accepts a Certificate in good faith will be relieved of the burden of proof and the purchaser may be required to establish the accuracy of the claimed exemption. If the purchaser cannot establish the accuracy and completeness of the information provided in the Certificate, the purchaser is liable for an amount equal to the transaction privilege tax, penalty and interest which the vendor would have been required to pay if the vendor had not accepted the Certificate. Misuse of this Certificate will subject the purchaser to payment of the A.R.S. § 42-5009 amount equal to any tax, penalty or interest. Willful misuse of this Certificate will subject the purchaser to criminal penalties of a felony pursuant to A.R.S. § 42-1127(B).
I, (print full name)
, hereby certify that these transactions are
exempt from Arizona transaction privilege tax and that the information on this Certificate is true, accurate and complete. Further, if purchasing or leasing as an agent or officer, I certify that I am authorized to execute this Certificate on behalf of the purchaser named above.
SIGNATURE OF PURCHASER
DATE
TITLE
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Filling out the Arizona Form 5000 is an important step for those seeking tax exemptions. This form must be completed accurately and provided to the vendor at the time of purchase. After you submit the form, the vendor will retain it for their records. It is essential to ensure that all information is correct to avoid any issues with tax compliance.
Filling out the Arizona Form 5000 can be challenging, and mistakes can lead to delays or complications. One common error is using the wrong form for the intended purpose. For example, individuals often mistakenly use Form 5000 to claim a sale for resale. Instead, they should use Form 5000A for resale claims. Similarly, non-TPT licensed contractors should not use Form 5000; they need to fill out Form 5000M. This simple oversight can result in significant issues down the line.
Another frequent mistake is failing to complete the form in its entirety. Incomplete forms are not accepted in good faith, which means that any missing information could jeopardize the validity of the exemption. It is crucial to ensure that every section is filled out correctly, including the purchaser's name, address, and the specific transaction type. Skipping even one detail can lead to complications and potential tax liabilities.
People often overlook the importance of selecting only one category of exemption per certificate. Attempting to claim multiple exemptions on a single Form 5000 is not permitted. This can create confusion and may invalidate the entire certificate. It is essential to carefully review the available exemption categories and choose the one that accurately reflects the transaction.
Additionally, some individuals fail to provide the required documentation to support their claims. For example, if claiming an exemption related to utilities or specific business activities, it is necessary to attach the appropriate certification or worksheet. Without this documentation, the vendor may reject the certificate, and the purchaser could face unexpected tax liabilities.
Finally, many people do not realize the importance of the certification section. The vendor must have reason to believe that the information provided is accurate and complete. If there are doubts, the vendor is not relieved of the burden of proving entitlement to the exemption. Therefore, it is vital to ensure that all information is truthful and that the person signing the certificate is authorized to do so. Misuse of the certificate can lead to serious consequences, including criminal penalties.