ALL TPT-2 DEDUCTION CODES W/ Abbreviated Descriptions .

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STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.CITY BUSINESSCODESSTATE DEDUCTION CODES & CITY DEDUCTION CODES:(CITY-SPECIFIC DEDUCTION CODES THAT ONLY APPLY IN CERTAIN LISTED CITIES, ARE INDICATED)500 - PC: MAINTAIN-REPAIR-REPLACE-ALTER CONTRACTwith PROPERTY OWNER501 - MV MANUFACTURER CASH REBATE Assigned fromPURCHASER to SELLER502 - PC: 35% DEDUCTION Allowed503 - RESALE - Sales for Resale504 - RET: INTERSTATE or FOREIGN COMMERCE Sales505 - RET: COLLEGE TEXTBOOKS required by State1515 - 16 - 3717 – 29 – 203420-60517 – 29 -203-420- 6051515 - 16 - 374-5-10-11-13-1417-29-41-49 313 –420- 60560617-203-42010 - 17 - 49 - 62 – 116203-420605 - 60617 – 29 - 605SEE CITY SPECIFIC CODE738 BELOWN/A17 - 29 - 605CONSUMPTIONThis Deduction is allowed for State Reporting but onlyfor the specified cities belowSpecific Cities: (A.R.S. 42-6017 C.1):17 – 29 - 60517 – 29 - 605507 - FOOD RETAIL Sales to RESTAURANT17 – 29 -60517 - 29 – 62- 605-60614 - 17 – 29 –315-60517 - 29 – 214- 315-6054 - 17 – 29 -6054 - 17 – 29- 605University or Community College This Deduction isallowed for State Reporting only. See below for city reportingCITY SPECIFIC CODE:738- EXEMPT COLLEGE TEXTBOOK SALESSpecific Cities : (A.R.S. 42-6017 C.2 )Eagar, Maricopa, Pima, Springerville, Tusayan506 - FOOD sold by a RETAILER for HOMEBullhead City, Camp Verde, Colorado City, Flagstaff,Huachuca City, Jerome, Kingman, Lake Havasu City, Marana,Mesa, Oro Valley, Parker, Phoenix, Quartzsite, Sahuarita,Sedona, Superior, Surprise, Tombstone, Tucson, Tusayan,Williams508 - AIRCRAFT sold to CARRIER, GOVT, NONRES509 - FUEL: NAT GAS or LPG for MOTOR VEHICLEPage 1Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.511 - UTIL - FUEL: sold to QUALIFIED ENVIRONMENTALCITY BUSINESSCODES4 - 17 – 29- 60517 – 29 - 60511 - 17 – 29- 605221-42111 - 17 - 29 – 111 1 – 221-421-17 –29- 60517 – 62- 605 - 60614 - 17 – 29- 60517 – 29 -60517-29-60517-605517 - TELEC: INTERNET ACCESS fees55518 - PC: LAND DEDUCTION not exceeding Fair Market15N/A17 – 29 - 60517 – 29 - 605TECHNOLOGY512 - FOOD to AIRLINE that is provided FREE toPASSENGERS513 - FOOD Purchased with SNAP cards514 - FOOD for ARIZ PRISON or JAIL515 - FUEL: Taxed Motor Vehicle, USE, AVIATION or JETFuel516 - LIVESTOCK POULTRY Growth Implants or MedsThis Deduction is allowed for State Reporting but onlyfor the specified cities below.Specific Cities (A.R.S. 42-6017 C. 3. (c)):Bullhead City, Buckeye, Camp Verde, Casa Grande, Chandler,Chino Valley, Colorado City, Duncan, Gilbert, Huachuca City,Mammoth, Maricopa, Mesa, Oro Valley, Phoenix, Pima,Quartzsite, Queen Creek, Scottsdale, Sedona, Snowflake, St.Johns, Thatcher, Tucson, Willcox, Winslow, Yuma.Eff. 01/01/2020-Avondale, Flagstaff, Glendale,Goodyear, Lake Havasu, Peoria, Surprise, TempeEff. 07/01/2021-Apache Junction, Benson, Bisbee, CampVerde, Carefree, Cave Creek, Clarkdale, Clifton, Coolidge,Cottonwood, Dewey Humboldt, Douglas, Eagar, ElMirage, Eloy, Florence, Fountain Hills, Fredonia, GilaBend, Globe, Guadalupe, Hayden, Holbrook, Jerome,Kearny, Kingman, Litchfield Park, Marana, Miami,Nogales, Page, Paradise Valley, Parker, Patagonia,Payson, Pinetop-Lakeside, Prescott, Prescott Valley,Safford, Sahuarita, San Luis, Show Low, Sierra Vista,Somerton, South Tucson, Springerville, Star Valley,Superior, Taylor, Tolleson, Tombstone, Tusayan, Wellton,Wickenburg, Williams, Winkelman, YoungtownValue519 - LIBRARY MATERIALS to PUBLIC LibrariesPage 2Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.520 - LIVESTOCK POULTRY Feed etc. to These Animals’CITY BUSINESSCODES17 – 29 -605SEE CITY SPECIFIC CODE720 BELOWSEE STATESPECIFIC CODE520 ABOVE17 – 29 -605521 - LOTTERY TICKETS by Retailer17 – 29 -60517 – 29 -605522 - M&E used directly in MANUFACTURING,14 - 17 - 29 –129- 60517 - 29 – 214- 605523 - M&E for COMMERCIAL MINING Operation Used14 - 17 - 29 –129- 60517 - 29 – 214- 60514 - 17 - 29 – 129-60517 - 29 – 214- 60517 – 29- 60517-60514 - 17 – 29 60517 - 29 – 214 - 60512N/A17 – 29 - 60517 – 29 - 60517 -60517 - 60517 -605N/A17 -605N/A14 - 17 – 29- 60517 - 29 – 214 - 605OWNERS or NONCOMMERCIAL BOARDERSThis Deduction is allowed for State Reporting only. See belowfor city reporting720 - LIVESTOCK POULTRY Feed etc. to These Animals’OWNERS or NONCOMMERCIAL BOARDERS ThisDeduction is allowed for the specified cities below.Specific Cities (A.R.S. 42-6017 C. 3. (b)):Bullhead City, Buckeye, Camp Verde, Casa Grande, Chandler,Chino Valley, Colorado City, Duncan, Gilbert, Huachuca City,Mammoth, Maricopa, Mesa, Oro Valley, Phoenix, Pima,Quartzsite, Queen Creek, Scottsdale, Sedona, Snowflake, St.Johns, Thatcher, Tucson, Willcox, Winslow, Yuma.PROCESSING, FABR, PRINTING Etc.Directly extract ores or minerals524 - M&E for ELECTRIC UTILITY business525 - M&E or Technology to Assist DISABLED to beFUNCTIONAL526 - DURABLE MED EQUIP - Rx & HCPC # for Home Use527 - AMUSE: Monthly MEMBERSHIP Fees528 - MV Parts sold to MOTOR CARRIER LESSOR529 - MV sold at AUCTION to NONRESIDENT530- MV sold to NATIVE AMERICAN who resides onRESERVATIONNo deduction is allowed for the cities for this type oftransaction, it remains taxable.531 - MV to NONRESIDENT from STATE with Lower TaxRate (COMPUTATION)No deduction is allowed for the cities for this type oftransaction, it remains taxable.532 - M&E to Repair CARRIER AIRCRAFTPage 3Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.533 - INSULIN SYRINGES TEST STRIPSCITY BUSINESSCODES17 – 29 -60517 – 29 - 60517 – 29 -60517 – 29 -605535 - PIPES VALVES 4"or LARGER for WATER-OIL- GASCOAL SLURRY including related14 - 17 – 29- 12960517 - 29 – 214- 605536 - DRUGS - OXYGEN Prescribed by DOCTOR14 - 17 – 29 -60517 - 29 – 214 -60517 – 29 - 60517-29 - 60514 - 17 – 29-31560517 - 29 – 214- 315-605534 - Guest PERSONAL HYGIENE ITEMS sold toTRANSIENT LODGING BUSINESS537 - RET: PROPAGATIVE MATERIALS, includes seedsetc. to commercial business. (Does Not include theGenus Cannabis)This Deduction is allowed for StateReporting but only for the specified cities below.Specific Cities (A.R.S. 42-6017 C. 3. (a)):Bullhead City, Buckeye, Camp Verde, Casa Grande, Chandler,Chino Valley, Colorado City, Duncan, Gilbert, Huachuca City,Mammoth, Maricopa, Mesa, Oro Valley, Phoenix, Pima,Quartzsite, Queen Creek, Scottsdale, Sedona, Snowflake, St.Johns, Thatcher, Tucson, Willcox, Winslow, Yuma.Eff. 01/01/2020-Avondale, Flagstaff, Glendale,Goodyear, Lake Havasu, Peoria, Surprise, TempeEff. 07/01/2021-Apache Junction, Benson, Bisbee, CampVerde, Carefree, Cave Creek, Clarkdale, Clifton, Coolidge,Cottonwood, Dewey Humboldt, Douglas, Eagar, ElMirage, Eloy, Florence, Fountain Hills, Fredonia, GilaBend, Globe, Guadalupe, Hayden, Holbrook, Jerome,Kearny, Kingman, Litchfield Park, Marana, Miami,Nogales, Page, Paradise Valley, Parker, Patagonia,Payson, Pinetop-Lakeside, Prescott, Prescott Valley,Safford, Sahuarita, San Luis, Show Low, Sierra Vista,Somerton, South Tucson, Springerville, Star Valley,Superior, Taylor, Tolleson, Tombstone, Tusayan, Wellton,Wickenburg, Williams, Winkelman, Youngtown538 - SOLAR ENERGY DEVICES539 - M&E Etc. to TELECOMMUNICATIONS Business541 - MV to NONRESIDENT that is shipped OUT-OFSTATE by RETAILER542 - RETAIL WARRANTY or SERVICE ContractPage 414 - 17 – 29- 129 60517 - 29 – 214 - 60517 - 60517 - 60517 – 29 - 60517 – 29 - 605Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.543 - USGOV: Sale to MMAR for GOVT Contract544 - TPP to NONPROFIT ORG that gives FREE MEALS toNEEDY on a regular basis545 - TPP to QUALIFIED HEALTH CARE ORG used forHealth & Medical Purposes ONLY546 - TPP/SVC to QUALIFIED HOSPITAL for ANYPURPOSE547 - USGOV: Sale by MMAR to U.S. GOVT548 - USGOV: RETAIL Sales Allowed 50% TPT IncomeDeduction (100% USE TAX DEDUCTION)549 - RETAIL: SERVICES Provided by SELLER550 - PC: SUBCONTRACTING INCOME551 - TAX COLLECTED or FACTORED included in GrossReceipts552 - TPP sold to TPT Licensee for Incorporation intoCITY BUSINESSCODES2 – 17 - 60517 - 60514 - 17 – 29-203414-420-60517 -203-420-6054 - 8 - 9 - 10 - 11 14 - 17 – 29- 203414-420-60517- 203-420-605DED CODE 671 BELOWFOR ALL OTHER BUSINESSCLASSIFICATIONS4 - 8 - 9 - 10 - 11 14 - 17 29 -203414-420-6054 - 9 - 10 - 11 - 17 - 29 - 49- 51 - 111 - 114 – 203-214420-48560514 – 17 -414-60517 -60517 – 29 - 60517 – 29 - 60517 – 29 -203-42060517-62-203-420-605-60615DED CODE 750 BELOWFOR ALL OTHER -15-1745-49-51-62-111-114-11619-25-26-29 -33144- 203-213- 214- 244 - 31349-51-56 -203-414420-325-605325 –420- 485-605-6062 - 17 – 29- 60517 – 29- 605553 - M&E used in Research & Development14 - 17 - 29 – 129- 60517 - 29 – 214 - 605554 - M&E used in HEALTHY FOREST PROJECT17 – 29 - 60517- 29 - 60515N/A14N/A1515 - 16 - 37PRIME CONTRACTING or MRRA Project555 - PC: HEALTHY FOREST Structure556 - PPR: 1st Month Lease Payment Transferred to 3rdPARTY LEASING COMPANY557 - PC: Cost of ARCHITECTURAL or ENGINEERINGServicePage 5Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.2-4-5-6-7-8-9-10558 - BAD DEBT DEDUCTION11-12-13-14-15-1719-25-26-29- 33(See Arizona Administrative Code (“A.A.C.”) rule R15-541-49-51-56–2032011)325-414-420-605559 - PROSTHETIC Prescribed by MEDICALCITY 29-37-40-4445-49-51-62-111-114-116144- 203-213- 214- 244- 313325- 420– 485-605-60614 - 17 – 29- 60517 - 29 – 214 - 605560 - PC: DEVELOPMENT FEES paid1515 - 16 - 37561 - JOB PR: Cost of POSTAGE FREIGHT1010562 - PC: Sale of USED MFTRD HOME1527563 - GAS for COMPRESSOR EQUIPMENT29 - 12929564 - RET: 3% of Income Sub to E911 Tax912N/A014 -15- 17 – 29 605*214 -15- 17 – 29 – 605*566 - FOOD ITEMS provided FREE to TRANSIENT17 – 29 - 60517- 605567 - RET: Sale of CASH EQUIVALENTS17 – 29 -60517 – 29 - 605568 - FOOD to RESTAURANT for EMPLOYEES17 - 29 – 12960517 – 29 - 60511 - 17 – 29 -221421- 60511 - 17 - 29 – 62 – 221222-421-422-605 606PROFESSIONAL565 - COMPUTER DATA CENTER EQUIPMENTEff. Retro to 09/2013*Eff. 10/2019 for Bus Code: 605LODGERduring WORK HOURS569 - FOOD to SCHOOL DISTRICT or CHARTER SCHOOLused during SCHOOL HOURS570 - BUSINESS ACTIVITY for ENROLLED NATIVEAMERICAN or TRIBAL ENTITY that OCCURS ONRESERVATION571 - TPP to PERSONAL PROPERTY LEASING BUSINESSto LEASE572 - TPP to QUAL COMMUNITY HEALTH CENTERPage 64 - 5 - 6 - 9 - 10 - 4 - 5 - 6 - 9 - 10 - 11 - 12 11 - 12 -13 - 14 - 15 - 16 - 17 - 27 - 44 - 13315 - 17 - 25 – 29 - -144 -203- 213 - 214 –221222- 313-420 -421-422203-221-420-42160560517 – 29 -60517 – 29 -60514 - 17 – 29- 203315414-420-6054 - 9 - 10 - 11 - 17 - 29 111 -114 -203-214 -315420-485-605Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.573-TPP/ PC: NONPROFIT ORG APT HOUSING for LowIncome Persons Over 62574 - TPP to QUALIFIED HEALTH CARE ORG for14 - 15 - 17 – 29 203-315-414-420605CITY BUSINESSCODES17- 203-315-420-60514 - 17 – 29 – 203315-414-420-60517-114 –203- 214 -315420- 605575 - TPP to NONPROFIT ORG for HANDICAP Program14 - 17 – 29 -203315-414-420-60517 - 29 - 114 –203- 214315-420- 605576 – RAILROAD Stock Rails Signal Equipment14 – 17 – 29 -60517 – 29 – 214 – 605577 – M&E for POULTRY & EGG Production14 – 17 – 29 -60517 – 29 – 214 – 605578 – M&E for TV STATION DIGITAL BROADCAST14 – 17 – 29 60517 – 29 – 214 – 60514 – 17 – 29 –129-60517 – 29 – 214 -60517- 605N/A14 – 15 – 17 – 29315-60515 – 16 – 17 – 29 – 37 –214-315-605582 – ORTHODONTIC DEVICES dispensed by a DENTIST17-60517-605583 – Commodities Sales warehoused in AZ17-60517-6052 – 17 – 29-60517 – 29-605handicapped children579 – M&E used to DRILL or EXTRACT OIL or GAS forCommercial Purposes580 – MV to NONRESIDENT from STATE that does notprovide a TAX CREDITNo deduction is allowed for the cities for this type oftransaction, it remains taxable.581 – TPP/PC: GROUNDWATER MEASURING DEVICES584 – TPP sold to Form 5009L Subcontractor forIncorporation into PRIME CONTRACTING Project585 – M&E used for COMMERCIAL AGRICULTURE Crops 14 – 17 – 29 -605and Products585 – M&E used for COMMERCIAL AGRICULTURE Crops17 -605DEDUCTIONCODE 585 ISUSED FOR THESESPECIFICBUSINESSCLASSIFICATIONSFOR THESELISTED CITIES29 – 214586 – CLOTHING for Paper Manufacturing17 – 29 – 60517 – 29 – 605587 – ALT FUEL to USED OIL FUEL BURNER4 – 17 – 29 -6054 – 17 – 29 – 605and Products. This Deduction allowed for the specifiedcities below and only for use tax (bus. Code 029) andRental of TPP (bus. Code 214)CITIES:Buckeye, Casa Grande, Duncan, Fountain Hills, Lake Havasu,Marana, Maricopa, Parker, Pima, Tucson, WillcoxPage 7Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.588 – LIQUOR by LIQUOR WHOLESALERCITY BUSINESSCODES17 -60517 -6052 – 15 – 17 – 29 315-60515 – 17 – 29-315- 60517 – 29- 60517 – 29 -605SERVICE14 – 17 – 29 -31560517 – 29 – 214 – 315-605592 – ALTERNATIVE FUEL VEHICLES14 – 17 – 29 -60517 – 29 – 114 – 214 -60514214594 – HEARING AIDS but not batteries14 – 17 – 29 -60517 – 29 – 214 -605595 – CLEAN ROOM for SEMICONDUCTORS14 – 15 – 17 – 29–129 -315-60515 – 16 – 17 – 29 – 37 214-315-605596 – APPLICATION SERVICES to TEST Students5 – 14 – 17 – 29 –6055 – 17 – 29 – 133 – 21460514 – 17 – 29 –129-315-60517 – 29 – 214- 315-60517 – 29 -60517- 605589- TPP/PC: ENVIRONMENTAL RESPONSE &REMEDIATION590 – EYEGLASSES CONTACTS Sold on RX591 – TPP Used by SATELLITE TV-DATA TRANSMISSION593 – PPR: RENTALS OF PERSONAL PROPERTYSHIPPED & USED EXCLUSIVELY OUT-OF-STATE597 –TPP/PC: M&E to meet Fed & State POLLUTIONRules598 – FUEL to HEALTHY FOREST BUSINESS599 – TPP/PC: M&E to PREVENT POLLUTION Farm Ranch 14 – 15 – 17 – 29 315-605600 – PC: Install Repair Etc. of TPP that hasINDEPENDENT FUNCTIONAL UTILITY601 – RET: PRECIOUS METALS and COINS602 – MAGAZINES promote AZ TOURIST TRAVEL603 – M&E Repair Parts HEALTHY FOREST PROJECT604 – RENEWABLE ENERGY CREDIT Sales or Transfers17-15 – 16 – 37-315- 6051515 – 16 – 3717 – 29- 60517 – 29- 6059 – 17 – 29 -60517 – 29 – 60517 – 29 -60517-6054 – 17 – 29 -6054 – 17 – 29 -60514 – 17 – 29 -605N/A605 – NEAT ANIMALS HORSES used for BREEDING,Also LIVESTOCK POULTRY TO COMM BUS This Deduction Codeis allowed for State Reporting only, see below for Cityreporting.Page 8Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.CITY BUSINESSCODES736 – NEAT ANIMALS HORSES used for BREEDING,Also LIVESTOCK POULTRY TO COMM BUS. This Deduction isallowed for the specified cities below.Specific Cities (A.R.S. 42-6017 C. 3. (d)): Casa Grande,Colorado City, Huachuca City, Mammoth, Maricopa, Pima,Queen Creek, Scottsdale, Snowflake, Tucson, WillcoxN/A17-605606 – BUS or URBAN MASS TRANSIT VEHICLE14 – 17 – 29 – 60517 – 29 – 214 – 605607 – ENVIRONMENTAL TECH FACILITY14 – 15 – 17 – 29–605Eff. 01/01/2020-Avondale, Buckeye, Chandler, Flagstaff,Gilbert, Glendale, Goodyear, Lake Havasu, Mesa, Peoria,Phoenix, Surprise, Tempe, YumaEff. 07/01/2021-Apache Junction, Benson, Bisbee,Bullhead City, Camp Verde, Carefree, Cave Creek, ChinoValley, Clarkdale, Clifton, Coolidge, Cottonwood, DeweyHumboldt, Douglas, Duncan, Eagar, El Mirage, Eloy,Florence, Fountain Hills, Fredonia, Gila Bend, Globe,Guadalupe, Hayden, Holbrook, Jerome, Kearny,Kingman, Litchfield Park, Marana, Miami, Nogales, OroValley, Page, Paradise Valley, Parker, Patagonia, Payson,Pinetop-Lakeside, Prescott, Prescott Valley, Quartzsite,Safford, Sahuarita, San Luis, Sedona, Show Low, SierraVista, Somerton, South Tucson, Springerville, St. Johns,Star Valley, Superior, Taylor, Thatcher, Tolleson,Tombstone, Tusayan, Wellton, Wickenburg, Williams,Winkelman, Winslow, Youngtown608 – PC: COST of 508 DED in Gross Income609 – RET: FET on HEAVY TRUCK TRAILERPage 917 – 29 – 60515 – 31515 – 16 – 37 – 31517-60517-605Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.611 – RET: OVERHEAD MATERIALS for US GOVTCITY BUSINESSCODES17 – 29 – 129 –60517 – 29 -605612 – TRANSPORTATION or AMUSEMENT: ARRANGED &6 – 126 – 12613 – RET: WASTE TIRE DISPOSAL FEE17-60517-605614 – RET: WIRELESS EQUIPMENT SALES COMMISSION17-60517-605615 – TRANSPORT of PERSONS by AIR if preempted by6N/A616 – TRANSP: RAILROAD INTERSTATE66617 – ELECTRICITY SENT OUT-OF-STATE4 – 29N/A618 – UTIL: SOLAR CUSTOMER TRANSFERS44619 – TELEC: SVCS SAT TV / DATA TRAN5N/A620 – TRANSP: RAILROAD RESALE6N/A4 – 294622 – PC: COST of 522 DED in Gross Income15 – 31515 – 16 – 37 – 315623 – PC: COST of 523 DED in Gross Income15 – 31515 – 16 – 37 – 315624 – PC: COST of 524 DED in Gross Income15 – 31515 – 16 – 37 – 3156N/A4 – 294627 – TELEC: CARRIER ACCESS CHARGES55 – 105 – 133628 – PUB: ADVERTISING INCOME9N/A25N/A10N/A14N/A15 – 31515 – 16 – 37 – 315633 – TELEC: DB SATELLITE TV SERVICES55634 – COMM LEASE BETWEEN AFFILIATES1345 – 213 – 313CONTRACTEXEMPTFEDERAL LAW621 – UTIL: DEVELOPMENT FEES)625 – TRANSPO: RAILROAD TRANSPORT of FERTILIZER626 – UTIL: INSTALLED PROP REIMBURSEMENT629 – TR LODG: MOBILE HOME Etc. for more than 29DAY Period630 – JOB PR: to LIC BUS – FREE MAG NEWS631 – PPR: LEASE by PARENT to SUB or SUB to SUB ifTAX PAID on INITIAL SALE of PROPERTY632 – PC: COST of 532 DED in Gross IncomePage 10Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.635 – PC: COST of 535 DED in Gross IncomeCITY BUSINESSCODES15 – 31515 – 16 – 37 – 315636 – TR LODG: BED & BREAKFAST- LESS THAN 525N/A637 – JOB PR: Delivered OUT-OF-STATE10N/A638 – COMM LS: to NONPROFIT for MLB or GOLF13213 – 31315 – 31515 – 16 – 37 – 3156 – 12 – 256 – 12 – 44 – 144 – 2445N/A13N/A55 – 105 – 133644 – PC: COST of 544 DED in Gross Income15 – 315315645 – PC: COST of 545 DED in Gross Income15 – 315315646 – PC: COST of 546 DED in Gross Income15 – 31515 – 16 – 37 – 315647 – COMM LS: to NONPROFIT for RODEO13N/A648 – TR LODG: SERVICE COMMISSIONS2544 – 144 – 244649 – TELEC: SVCS PREPAID CARD or AUTH55 – 133650 – COMM LS: RESIDENTIAL 29 DAYS13N/A651 – PPR: PHOTOS Etc. for ARIZ TOURISM14N/A652 – MINE: ACTUAL FREIGHT COST2N/A653 – PC: COST of 553 DED in Gross Income15 – 31515 – 16 – 37 – 315654 – PC: COST of 554 DED in Gross Income15 – 315N/A655 – COMM LS: for RELIGIOUS WORSHIP13N/A656 – PPR:VEHICLE REG FEE REIMBURSEMNT14114 – 214657 – AMUSE: INSTRUCTIONAL ACTIVITIES12SEE CITY SPECIFIC CODE803 BELOW658 – MINE: PROCESS COST – SHIPMENT Out Of State2N/A659 – COMM LS: ELIGIBLE TRANSPO FACILITY13N/AROOMS and 50% ANNUAL OCCUPANCY639 – PC: COST of 539 DED in Gross Income640 – BUSINESS ACTIVITY TAXED under OTHER CLASS641 – TELEC: COMMON LINE CHARGES642 – COMM LS: to LICENSED NURSING CAREINSTITUTION643 – TELEC: INTERSTATE TELEC SVCSPage 11Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.CITY BUSINESSCODES660 – PPR: MV LEASE if MOTOR CARRIER FEE PAID14-414214-114661 – AMUSE: PARI-MUTUEL and PURSE MONIES121211 – 2929663 – PC: FURNITURE APPLIANCES not incorporated into1527664 – COMM LS: AGRICULTURAL PROP between FAMILY13N/A15 – 31515 – 16 – 37 – 315666 – AMUSE: TRAN LODGING RECREATIONAL12N/A667 – PC: MILITARY REUSE ZONE PROJECTS15N/A668 – PC: MANUFACTURED BLDG RESALE to DEALER1527669 – COMM LS: PROFIT A PRENDRE13N/A670 – AMUSE: SALE to TRANSIENT LODGING BUSINESS1212662 – REST: FOOD to NONPROFIT that FEEDS NEEDYregularly for freeMFTRD BLDGMEMBERS or LESS THAN 3 LEASES665 – PC: COST of 565 DED in Gross IncomeESTABLISHMENT MEMBERSHIP FEESfor RESALE671 – CITY SALES TO QUALIFIED HEALTH CARE ORGCity Retail Deduction Code is 545672 – PC: COST of 572 DED in Gross IncomeSEE RELATEDSTATE CODE 545ABOVE4 – 9 – 10 – 11 – 29 – 49 –51- 111 – 114 – 214 – 48515 – 31515 – 16 – 37 – 31515N/A674 – PC: COST of 574 DED in Gross Income15 – 315315675 – PC: COST of 575 DED in Gross Income15 – 31515 – 16 – 37 – 315676 – PC: COST of 576 DED in Gross Income15 – 31515 – 16 – 37 – 315677 – PC: COST of 577 DED in Gross Income15 – 31515 – 16 – 37 – 315678 – PC: COST of 578 DED in Gross Income15 – 31515 – 16 – 37 – 315679 – PC: COST of 579 DED in Gross Income15 – 31515 – 16 – 37 – 315680 – PPR: CAR RENTAL SURCHARGES14114 – 214681 – PC: INCOME FROM OUT-OF-STATE PROJECTS1515 – 16 – 37673 – PC: DOMESTIC VIOLENCE SHELTERPage 12Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.CITY BUSINESSCODES682 – COMM LS: UTILITY SERVICES REIMBURSEMENT1345 – 213 – 313683 – PC: ENVIRONMENTALLY CONTROLLED POULTRY /1515 – 16 – 37684 – USE TX: CREDIT for TAX PAID to an EQUIVALENT29 – 5129685 – PC: COST of 585 DED in Gross Income15 – 31515 – 16 – 37 – 315151529 – 12929688 – USE TX: ADVERTISING SUPPLEMENTS29N/A689 – PC: LAWN MAINTENANCE SERVICES1515690 – PC: DESIGN PHASE or PROFESSIONAL SERVICES15N/A15 – 31515 – 16 – 37 – 31529N/A292915N/A29N/A15N/A15 – 31515 – 16 – 37 – 31515N/A9 – 10 – 14 – 17 –29-203-414-4206059 – 10 – 17 – 29 –203- 214-420-6052544 – 144 – 2446 – 126EGG FACILITYJURISDICTION686 – PC: TERMITE or PEST TREATMENT687 – COMPONENT PARTS for Manufactured PRODUCTfor RESALE691 – PC: COST of 591 DED in Gross Income692 – USE TX: Sale to DIRECT PAY PERMIT HOLDER693 – USE TX: 200 DEDUCTION for FOREIGNPURCHASES- Cities Effective Date 10/1/2019694 – PC: MANUFACTURED BLDG delivered OUT-OFSTATE695 – USE TX: NONPROFIT PURCHASE from OUT OFSTATE AFFILIATE696 – PC: STATE UNIVERSITY RESEARCHINFRASTRUCTURE PROJECT697 – PC: COST of 597 DED in Gross Income698 – PC: LAUNCH SITE Construction699 – TPP to QUALIFYING HEALTH SCIENCESEDUCATIONAL INSTITUTION701 – TR LODG: EXEMPT AMUSEMENT orTRANSPORTING702 – TRANSPORTATION or AMUSEMENT Resale:ARRANGED & TAXEDPage 13Effective Sept 1, 2021

STATE BUSINESSALL TPT-2 DEDUCTION CODES w/ Abbreviated Descriptionsof Statutory Text and/or Model City Tax Code AuthorityCODESEffective for periods October 2019 and forwardLEGEND (Abbreviations) and BUSINESS CODE LISTINGS at end of this document.703 – USE TX: MOTOR VEHICLE donated toCITY BUSINESSCODES29 – 30N/A2544 – 144 – 244705 – USE TX: RX PLAN ID CARDS / PARTS29 – 129N/A706 – PC: COST of 606 DED in Gross Income15 – 31515 – 16 – 37 – 315707 – USE TX UTIL: TPP EXEMPT under UTIL26 – 29 – -20-27-29-37-4044-45-49-51-62-111- 114- 116-133-144-203- 213214-244- 313 –420- 485605-60626 – 2929MANUFACTURER or SMELTER4 – 29 – 129N/A711 – TRADE-IN ALLOWANCE14 – 17 – 29-60517 – 29 – 214-60515 – 17 – 29 –315-60517 – 29 – 315-605N/A10NONPROFIT or UNIVERSITY704 – TR LODG: EXEMPT SERVICESCLASSIFICATION708 – VENDOR DISCOUNTS or CUSTOMER RETURNS709 – USE TX UTIL: REV Taxed under CL 004710 – UTIL: ELECTRICITY, NAT GAS or LPG to712 – PROPERTY Sold to Contractor for MRRA Project onan INDIAN RESERVATIONCITY SPECIFIC CODE:713 – EXEMPT JOB PRINTING for LICENSED PUBLISHERSCITIES:Buckeye, Casa Grande, Chandler, Clarkdale,Duncan, Flagstaff, Gilbert, Glendale, Globe, Goodyear,Huachuca City, Lake Havasu, Mammoth, Marana, Mesa,Oro Valley, Payson, Peoria, Pima, Quartzsite, Scottsdale,Snowflake, Star Valley, Tempe, Tolleson, Tucson,YoungtownPage 14Effective Sept 1, 2021

CITY SPECIFIC CODE:714 – QUALIFIED: HOSPITAL, HEALTH CARE,or COMMUNITY HEALTH CENTERCITIES:Benson, Bullhead, Casa Grande, Cave Creek, Clarkdale,Colorado city, Dewey-Humboldt, Douglas, Duncan,Eagar, Eloy, Flagstaff, Florence, Fountain Hills, Fredonia,Gilbert, Goodyear, Guadalupe, Hayden, Huachuca City,Lake Havasu city, Maricopa, Miami, Nogales, Oro Valley,Page, Paradise Valley, Parker, Patagonia, Payson,Phoenix, Pima, Pinetop-Lakeside, Prescott Valley,Quartzsite, Safford, Sahuarita, Show Low, Snowflake,South Tucson, Springerville, Star Valley, Superior,Surprise, Tempe, Tolleson, Tombstone, Tucson, Tusayan,Wellton, Youngtown715 – TRANSPO by MOTOR CARRIERS or LIGHT MOTORVEHICLES – FEES PAID TO MVD(CITIES DO NOT EXEMPT INCOME DERIVED fromLIGHT MOTOR VEHICLES under 715)716 – RET: POSTAGE STAMPS sold at Face ValueCITY SPECIFIC CODE:717 – EXEMPT CoinOp CLEANING MACHINESCITIES:Benson, Buckeye, Bullhead City, Carefree, Casa Grande,Cave Creek, Duncan, Eloy, Flagstaff, Gila Bend, Gilbert,Lake Havasu, Marana, Mesa, Nogales, Oro Valley,Paradise Valley, Parker, Patagonia, Phoenix, Pima,Pinetop Lakeside, Safford, Scottsdale, Sierra Vista, StarValley, Thatcher, Tolleson, Tucson, Wickenburg,Williams, Winslow,718 – TR LODG: LODGING obtained at START for MORETHAN 29 DaysCITY SPECIFIC CODE:718 – TR LODG: LODGING obtained at START for MORETHAN 29 DaysCITIES:Bullhead City, Flagstaff, Globe, Lake Havasu, Marana,Oro Valley, Payson, Quartzsite, Safford, Sedona, Showlow, Snowflake, Tucson, Tusayan, Willcox, WinslowN/A45 – 213 – 31366(ALSO SEE CITY SPECIFICCODE 722 BELOW17-60517-605SEE STATE CODE78621425SEE CITY SPECIFIC CODE718 BELOWSEE STATE CODE718 ABOVE44 – 1441515YUMA: First 90 days are taxable, remaining days exempt719 – PC: MIXED WASTE PROCESS FACILITY

CITY SPECIFIC CODE:721 – TELEC: TAX CREDIT for FRANCHISE/LICENSE FEES(DIVIDE FEE AMOUNT BY CITY TAX RATE)CITIES:Apache Junction, Bullhead City, Camp Verde, CasaGrande, Colorado City, Duncan, Douglas, Eloy, GilaBend, Glendale, Goodyear, Huachuca City, Kearny,Kingman, Lake Havasu, Litchfield Park, Mammoth,Marana, Miami, Peoria, Phoenix, Show Low, Sierra Vista,Snowflake, Thatcher, Tolleson, Willcox5N/A105 (TU)133 (NO. and TU.)CITY SPECIFIC CODE:722 – EXEMPT ALL MOTOR VEHICLE TRANSPORT FORHIRECITIES:Chandler, Cottonwood, Mesa, Phoenix, Sahaurita,Scottsdale, Sierra Vista, Tempe, Thatcher, Tolleson,WinslowN/A6CITY SPECIFIC CODE:723 – UTIL: TAX CREDIT for FRANCHISE FEESCITIES: (DIVIDE FEE AMOUNT BY CITY TAX RATE)Apache Junction, Avondale, Benson, Buckeye, BullheadCity, Camp Verde, Cave Creek, Clarkdale, Duncan, Eloy,Huachuca City, Jerome, Kingman, Lake Havasu, LitchfieldPark, Marana, Paradise Valley, Quartzsite, Scottsdale,Sedona, Show low, Sierra Vista, Thatcher, Tolleson,WillcoxN/A4104 (TU)133 (NO)1111 – 11111 – 17 – 29-221421-60511 – 17 – 29 – 111-221222-421-422-605CITY SPECIFIC CODE:727 – TAX MORATORIUM – REAL PROPERTYCITIES: Duncan, Eloy, TucsonN/A15 – 16 – 37 – 45 – 213CITY SPECIFIC CODE:728 – DAVIS MONTHAN BASE TRANSACTIONSCITY: TucsonN/A4 – 5 – 11 – 15 – 16 – 17 –37- 104 – 105 – 133-605724 – REST: GRATUITIES – TIPS distributed 100% toSERVERS or SERVICE EMPLOYEES-NOTE: State allowsdistribution of less than 100% if the difference isattributable to credit cards fees.725 – TPP Sales BY Nonprofit Charitable IRC 501C(3)Organization

CITY SPECIFIC CODE:730 – EXEMPT HEALTH DANCE SPORTFEES CITIES:Avondale, Benson, Bisbee, Carefree, Casa Grande,Clarkdale, Clifton, Dewey Humboldt, Duncan, Eloy,Flagstaff, Fountain Hills, Fredonia, Globe, Goodyear,Guadalupe, Jerome, Kingman, Kearny, Lake Havasu,Litchfield Park, Mammoth, Marana, Mesa, Miami,Nogales, Oro Valley, Page, Parker, Patagonia, Payson,Phoenix, Pima, Prescott, Prescott Valley, Sahuarita, SanLuis, Scottsdale, Sedona, Show Low, Sierra Vista,Somerton, South Tucson, Star Valley, Superior, Taylor,Thatcher, Tolleson, Tombstone, Wellton, Wickenburg,Williams, Winkelman, Youngtown, YumaN/A12CITY SPECIFIC CODE:731 EXEMPT GOLF COURSE GREENS FEESCITIES: Bisbee, Duncan, Nogales, Patagonia, Sedona,Snowflake, Tolleson, WillcoxN/A12CITY SPECIFIC CODE:732 – EXEMPT CONTRACTING FT HUACHUCACITY: Sierra VistaN/A15 – 16 – 37CITY SPECIFIC CODE:734 – SPEC BLDR: EXEMPT FAIR MKT VALUE OF LANDCITIES: Bullhead City, Camp Verde, Douglas, Kingman,Lake Havasu, Pima, Parker, Pinetop-Lakeside, Prescott,Prescott Valley, Quartzite, Safford, Show low, Taylor,WillcoxN/A161212N/A17 – 29N/A5735 – AMUSE: ENTRY FEES for 501 (3) ORG’S RUNWALK SWIM RIDE or similar EVEN

738- EXEMPT COLLEGE TEXTBOOK SALES . Specific Cities : (A.R.S. 42-6017 C.2 ) Eagar, Maricopa, Pima, Springerville, Tusayan . N/A . 17 - 29 - 605 . 506 - FOOD sold by a RETAILER for HOME CONSUMPTION . This Deduction is allowed for State Reporting but only for the specified cities below . Specific Cities: (A.R.S. 42-6017 C.1):File Size: 402KBPage Count: 29Explore furtherTPT Refund Arizona Department of Revenueazdor.govDeduction Codes Arizona Department of Revenueazdor.govDeduction Codes Arizona Department of Revenueazdor.govRetail Sales Subject to TPT Arizona Department of Revenueazdor.govArizona Deduction Codesrevds.comRecommended to you b

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