SB 1515 Summary

• Adds definitions for digital goods and related items (digital audiovisual works, digital audio works, digital books, and computer software) to Arizona's transaction privilege and use tax statutes.

• Clarifies that digital goods and prewritten computer software are classified as tangible personal property subject to transaction privilege tax.

• Establishes sourcing rules for leasing digital goods, requiring apportionment to the location of the user based on a lease factor comparing in-state to total receipts.

• Renumbers and reorganizes existing tax definitions in sections 42-5001, 42-5151, and 44-1263 while correcting grammatical language and standardizing terminology throughout.

• Declares the act clarifies statutory intent and ratifies historical administrative interpretation without providing substantive changes to existing law.