The complexities of state and local sales, use, and income tax laws, rules, rulings, formal determinations, and informal practices require the creation of new entities and/or transaction structures to entitle taxpayers to particular tax savings opportunities. WWP utilizes its knowledge of taxing jurisdictions’ policies by creating approved structures and implementing these prospective tax savings mechanisms in a thorough and non-disruptive fashion. WWP has represented many of the most recognized businesses operating in the Southwest including leasing companies, property developers, transportation companies, and technology businesses.
Arizona and its localities impose a privilege tax that is commonly referred to as a “sales tax”. Privilege tax is imposed upon numerous categories of businesses operating within the State and local jurisdictions, including retail, leasing, transportation, utility, restaurant, property development, advertising, etc. State privilege taxation, exemptions and credits differ in many ways from local privilege taxation. Although local privilege tax is based upon the Model City Tax Code, many localities have adopted unique provisions that further complicate privilege tax compliance. All classifications of business that are subject to privilege tax also have different exemptions, exclusion, and/or credits that afford the businesses potential tax savings opportunities. Through its experienced tax professionals, WWP assists its clients with deciphering the complex and often inconsistent privilege laws of Arizona State and its localities. WWP specializes in identifying and implementing previously unclaimed privilege and use tax opportunities as well as providing experienced and aggressive audit defense.
Arizona and its localities also impose a complimentary use tax intended to reach out-of-state transactions that were not subject to Arizona transaction privilege tax or another state’s taxation. In order to avoid unconstitutional discrimination of interstate commerce, the use tax must afford taxpayers at least the equivalent exemptions, deductions, and credits as its complimentary privilege tax. Because of the complimentary nature of the use tax, WWP provides similar services relating to use tax as it does for privilege tax.
For specific questions about administration, taxation, exemptions, exclusions, or credits, please contact a tax professional of WWP.