Subscription Membership Fees Taxable as Rentals in Arizona

Friday, May 29th, 2015

 
 
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The Arizona Department of Revenue released a letter ruling determining that a subscription fee for a membership that gives subscribers access to instant video, an e-book library, and shipping benefits is the taxable rental of tangible personal property. The instant video and e-book library portions of the membership are taxable as rentals of tangible personal property. Because the membership is a single bundled fee that includes these taxable components, the entire charge is taxable.

The ruling also determined that trial memberships offering the same benefits are not taxable because the taxpayer receives no payment for them, so there are no taxable gross receipts.

http://www.azdor.gov/LinkClick.aspx?fileticket=P0hzKbBhEMU%3d&tabid=107&mid=490


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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