Stay up to date with sales tax: Join our mailing list!

Drive-Through Window Taxable in Arizona


Retail

The Arizona Tax Court found a doughnut store owner to be liable for sales tax on drive-through sales of doughnuts and other consumable items. While the Court accepted that the drive-though sales were recorded separately from inside sales, it made no distinction for the drive-through window sales from sales within the restaurant. The statutory exemption requires the absence of facilities on the premises. As the doughnut store provided counters, dining facilities, and a drive-through window sharing a common building and a common kitchen, the store was considered to be a single premise, with dining facilities. (Rigel Corporation v. State of Arizona, Arizona Tax Court, No. TX 2006-050010)

(01/04/2008)
(Archived)
Scroll to Top