R15-3-314. Sales in Interstate or Foreign Commerce

Tobacco products sold by licensed distributors to purchasers located outside the state are exempt from tobacco taxes if the following conditions are met: 1. The distributor ships or delivers the tobacco products to a location outside the state for use outside the state; 2. The distributor files with the Department the applicable monthly return or report for the tobacco products being sold, in the form and manner required by the Department; 3. In the appropriate section of the return or report filed under subsection (2), the distributor indicates the amount of out-of-state sales and the party to whom the sales were made; 4. The distributor provides to the Department a copy of either the invoice issued by the distributor to the out-ofstate party to whom the sales were made or a copy of the return or report filed with the taxing authority of the state of destination of the cigarettes or other tobacco products; and 5. Pursuant to A.R.S. § 42-3405, the distributor retains one copy of each return or report for four years following the close of the calendar year in which the tobacco products are sold.