Transaction Privilege (Sales) Tax Return Instruction Sheet

multiple payments, the increased tax rate shall apply to gross income received on or after July 1,2004.

Telecommunications: The increased tax rate, in the case of a single payment shall apply to gross income

from all telecommunications contracts executed on or after July 1, 2004, but in the case of periodic or

multiple payments, the increased tax rate shall apply to gross income received on or after July 1, 2004,

regardless of when the telecommunications contract was executed.

Advertising: The increased tax rate, in the case of a single payment, shall apply to gross income from

advertising disseminated on or after July 1, 2004, but in the case of periodic or multiple payments, the

increased tax rate shall apply to gross income received on or after July 1, 2004. Please note, the City of

Scottsdale taxes the sale of local advertising, while the State of Arizona chooses not to tax these

transactions.

Amusements. Exhibitions and Similar Activities: The increased tax rate shall apply to all gross income

received on or after July 1, 2004.

Job Printing: The increased tax rate shall apply to all gross income received from printed material

delivered to the customer on or after July 1, 2004.

10.

Feed at Wholesale: The increased tax rate shall apply to gross income derived from feed delivered to a

purchaser or customer on or after July 1, 2004. Please note, the City of Scottsdale taxes feed at

wholesale, while the State of Arizona chooses not to tax these transactions.

11.

Utility Services: The increased tax rate shall apply, in the case of a single utility payment to gross

income received from all utility contracts executed on or after July 1, 2004, but in the case of periodic

or multiple payments, the increased tax rate shall apply to gross income received on or after July 1,

2004.

12.

Transporting For Hire: The increased tax rate shall apply to gross income for transportation received by

the taxpayer either directly or through any travel agent, broker, or purveyor of transportation services

on or after July 1, 2004

13.

Manufactured Buildings: The increased tax rate shall not apply to gross income derived from any

contract (or similar arrangement or undertaking) executed or committed to, or where a binding bid has

been submitted prior to July 1, 2004. As to such activities, the former rate of 1.4% shall apply and the

increased rate of 1.65% shall apply only to such activities undertaken on or after July 1, 2004.

14.

Timbering and Other Extractions: The increased tax rate shall apply to gross income derived from

timber or natural resources delivered to the customer on or after July 1, 2004.

15.

Use Tax: The increased tax rate shall apply to storage and use of tangible personal property occurring

on or after July 1, 2004. The use tax rate will increase from 1.2% to 1.45%.

16.

The tax rate for jet fuel remains at $0.018 cents per gallon. The tax rate for mining remains at 0.1% of

gross income. The transient occupancy (bed) tax remains at 3.0% of gross income.

If you have any questions concerning this privilege and use tax rate increase, please call the Tax Audit Division

at (480) 312-7026 or the Tax and License Registration at (480) 312-2400.

Transaction Privilege (Sales) Tax Return Instruction Sheet - 2004 Page 2