Ariz. Admin. Code § 15-5-2206

Current through Register Vol. 30, No. 24, June 14, 2024

Section R15-5-2206 - Cancellation of License

A. In this Section, "affiliated person" has the same meaning as prescribed in A.R.S. § 42-5043.

B. The Department may cancel a license if:

1. During any consecutive 12-month period, the licensee reports no taxable transaction; and

2. The licensee is not a subcontractor or wholesaler.

C. The Department shall notify a licensee in writing of its intention to cancel the license. The notice shall explain the action the licensee may take to contest cancellation of the license and when cancellation is final.

D. The Department shall cancel a license 30 days after the notice of intention to cancel is mailed unless, within 30 days, the licensee objects to the cancellation in writing and produces documentation that the licensee is actively engaged in a taxable business. Suitable documentation includes, but is not limited to, the following:

1. Evidence that the licensee holds an inventory of raw or finished tangible personal property for sale or resale;

2. Evidence that the licensee maintains segregated bank accounts for the purpose of transacting business;

3. Bona fide contracts for future sale or resale of tangible personal property;

4. Profit and loss statements for federal or state income tax purposes; or

5. Evidence that the licensee otherwise actually engages in bona fide business activities.

E. Within 30 days of receipt of the licensee's objections and documentation, the Department shall notify the licensee in writing of its decision to cancel or retain the license. If the decision is to cancel the license, the licensee may request an administrative hearing.

F. Except as provided in subsection (G), a marketplace facilitator or remote seller may choose not to renew a license or cancel a license for the following calendar year if the sales of the marketplace facilitator or remote seller to Arizona purchasers fall below the current year threshold in A.R.S. § 42-5044 in the prior year.

G. A marketplace facilitator or remote seller may choose not to renew a license or cancel a license for the following calendar year if the current year sales of the marketplace facilitator or remote seller, together with the aggregated sales of all affiliated persons of the marketplace facilitator or remote seller to Arizona purchasers, fall below the current year threshold in A.R.S. § 42-5044 in the prior year.

Ariz. Admin. Code § R15-5-2206

Section R15-5-2206 renumbered to R15-5-2203, new Section R15-5-2206 renumbered from R15-5-3018effective October 14, 1993 (Supp. 93-4). Amended by exempt rulemaking at 25 A.A.R. 3010, effective 10/1/2019.