Local Advertising vs. National Advertising

Advertising is considered "local advertising" unless it fits one of the following "national advertising" categories:

• A product or service which is sold nationally or at least in other areas as well as Arizona. To qualify, the ad must not name just one specific Arizona business or one chain of Arizona businesses. It may name several different businesses.
• A facility or service which is not located in Arizona.
• A product which can only be bought from an out-of-State supplier.
• Political advertising for a United States Presidential or Vice Presidential candidate.
• Advertising by means of a coupon for a product good at any business which carries the product. This does not apply if the coupon is only good at one business or business chain.
• Advertising a transportation service which includes substantial interstate and foreign carriage.

These examples are typically "national advertising" when the ad does not name a specific Arizona business or chain:

• A soft drink sold nationally and available in numerous stores.
• A new movie.
• A Las Vegas hotel.
• A Caribbean cruise.
• Lots for sale in San Diego.
• A coupon for purchase of toothpaste.
• Records and tapes by mail order from out of state.
• An airline company.
• A railroad.

The following are some examples of "local advertising" and are taxable:

• A chain of stores including some within the State when only the common business name is identified.
• Sales of real estate located within the State.
• A hospital located within the State.
• An ad for a motel chain as long as the ad identifies any location within the State.
• Stockbrokers doing business within the State.
• A nonprofit organization which has an office within the State.
• Political ads except for President & Vice President.
• A restaurant chain which has an outlet within the State.
• Service businesses when the service is provided within the State.
• Coupons which can be redeemed only at a location within the State.
• An entertainment event which will be held at a location within the State.