1. 1. The distributor ships or delivers the tobacco products to a location outside the state for use outside the state;
2. 2. The distributor files with the Department the applicable monthly return or report for the tobacco products being sold, in the form and manner required by the Department;
3. 3. In the appropriate section of the return or report filed under subsection (2), the distributor indicates the amount of out-of-state sales and the party to whom the sales were made;

4. 4. The distributor provides to the Department a copy of either the invoice issued by the distributor to the out-of-state party to whom the sales were made or

   a copy of the return or report filed with the taxing authority of the state of destination of the cigarettes or other tobacco products; and

5. 5. Pursuant to A.R.S. § 42-3405, the distributor retains one copy of each return or report for four years following the close of the calendar year in which the tobacco products are sold.

Tobacco products sold by licensed distributors to purchasers located outside the state are exempt from tobacco taxes if the following conditions are met:

Historical Note

Adopted effective March 18, 1981 (Supp. 81-2). Former Section R15-3-314 renumbered to R15-3-311, new Section R15-3-314 renumbered from R15-3-319 and amended effective June 20, 1990 (Supp. 90-2). Amended by final rulemaking at 5 A.A.R. 2168, effective June 15, 1999 (Supp. 99-2). Amended by final rulemaking at 14 A.A.R. 4410, effective January 3, 2009 (Supp. 08-4). Amended by exempt rulemaking at 22 A.A.R. 1843, effective June 24, 2016 (Supp. 16-2).