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A New Exemption Certificate for Arizona

  • Jul 22, 2014 | Gail Cole

 Exemptions are not valid without proper documentation: the right exemption certificate.

The Arizona Department of Revenue has created a new exemption certificate for use by utility companies seeking a deduction for the gross receipts from the sale of electricity and natural gas primarily used in manufacturing and smelting operations. The new certificate is for use only by Arizona manufacturers or smelters using at least 51% of the electricity or natural gas in their manufacturing or smelting operations (as defined by A.R.S. §42-5063).

Form 5014, Exemption Certificate for Electricity and Natural Gas Primarily Used in Manufacturing and Smelting Operations takes effect August 1, 2014. It must be properly completed by the buyer and provided to the seller at the time of purchase. Vendors are required to keep up-to-date exemption certificates on record.

The proper management of sales tax exemptions is a great challenge for manufacturers and distributors.  Learn how to manage exemption certificates in the cloud.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.