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The following guidelines provide background information on the most common types of filings and the related exemptions in Arizona.
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In this state, charitable solicitation registration is not required, effective as of September 25, 2013. Be sure to review other state registration and tax requirements and stay apprised of updates by visiting the applicable state agency’s website.
This state does not require organizations to post specific language when conducting charitable solicitations.
Some states require organizations to appoint a “registered agent” in the state as part of the organization’s charitable registration. This state does not currently have this requirement.
This state does not require organizations to post specific language when conducting charitable solicitations.
Ariz. Rev. Stat. 44-1271-1282, regarding telephone solicitations; Ariz. Rev. Stat. 44-6561 regarding unlawful acts or practices with respect to charitable solicitation
(not applicable)
Depending on the type and volume of activities an organization has in this state, an organization may also need to register as an out-of-state business (sometimes called a “foreign business”) with the secretary of state or another state agency.
These foreign business registration requirements are separate from the charitable registration. Not every out-of-state organization needs to register. An attorney can assist the organization in determining whether its connections with this state are significant enough to trigger the foreign business registration requirement. Examples of activities that might trigger this requirement include having employees physically located in the state, conducting programs in the state, and having an office in the state.
In this state, organizations that have received recognition of federal income tax exemption under IRC Sec. 501(c)(3) are automatically exempt from state corporate income tax. Some organizations may choose to send a copy of their IRS determination letter to the state department of revenue to indicate the organization’s position that it qualifies for the exemption. Note that, although an organization may be exempt, if it has unrelated business taxable income (UBTI) that is subject to federal taxation, that UBTI will be subject to state income tax. (Ariz. Rev. Stat. § 43-1231.)
It is also important to consider whether your organization might be eligible for sales and use tax (called the “transaction privilege tax” in Arizona”) or property tax exemption. Arizona does not have a blanket sales and use tax exemption for nonprofits, but specific exemptions may be available. More information about the transaction privilege tax is available on the Arizona Department of Revenue website. Information about property tax is available in Ch. 11 of the Arizona Revised Statutes and on local county websites. An accountant or attorney can provide answers to specific questions regarding your organization’s eligibility for exemption.
This state does not have a corporate franchise tax.
See below.
Foreign Business Registration Application: https://www.azcc.gov/docs/default-source/corps-files/instructions/c018i- instructions-application-for-authority.pdf?sfvrsn=7a5272d6_2
Exempt Organization Tax Forms: https://azdor.gov/forms/exempt- organization-forms
This resource contains general educational information related to legal concepts, but this information does not constitute legal advice. Anyone seeking legal advice is strongly encouraged to consult with a licensed attorney regarding any of the matters discussed herein. Although licensed attorneys work with Napa Legal, Napa Legal is not a law firm and does not undertake legal representation on behalf of any clients. Further, no licensed attorney working with or on behalf of Napa Legal agrees to undertake legal representation on behalf of any client unless the terms of such representation are set forth in a separate, written representation agreement.
