AZ HB2598

Allows customers to claim refunds of transaction privilege tax or use tax paid to vendors if the vendor assigns its refund rights to the customer through a formal process or if the vendor fails to assign within 60 days.

Customers may file refund claims directly with the Arizona Department of Revenue (for state taxes) or municipal tax collectors (for local taxes) without requiring amended vendor returns, and vendors cannot pursue separate refunds for the same transactions.

Establishes procedures for handling customer refund claims, including vendor notification requirements, interest calculations from the date of claim filing, and provisions allowing customers to recover reasonable fees and costs if their claims are ultimately successful.

Adds definitions of "customer" and "vendor" to tax statutes and allows limited disclosure of vendor information to customers pursuing refund claims under the new provisions.

Applies similar refund claim procedures to municipal transaction privilege taxes through a new section of the city tax code, with corresponding provisions for interest, fee recovery, and claim processing requirements.