Sec. 19-42. Reporting and holding period exemptions.
A. Sections 19-40 and 19-41 shall not apply to transactions falling within any one or more of the following categories:
1. Purchases by a secondhand dealer or auction house, or consignments to an auction house, of either business inventory or business equipment from a business with a fixed business location; provided, that the licensee acquires at, or has previously acquired by, the time of the transaction, all of the following:
a. The name and address of the business.
b. The State and local privilege (sales) tax license number of the business, if applicable.
c. Regardless of the amount of the transaction, either a copy of the invoice or other document showing the business’s bona fide purchase of or right to possess the article sold, or a transaction report that is completed in all its particulars as specified in Section 19-40 and that is signed by a representative of the business with actual or apparent authority to act on behalf of the business for purposes of this subsection.
2. Purchases of household items by a secondhand dealer or auction house from a place of residence; provided, that all of the following apply:
a. The purchase is made by the licensee by check or other negotiable instrument made payable to the seller, or the purchase is made in cash and the licensee has obtained a receipt for that cash payment from the seller bearing the seller’s name and address, verified to be accurate by the licensee from identification of the type listed in Section 19-40(A)(5).
b. The seller has produced for the licensee’s inspection documentary evidence that would establish to the satisfaction of a reasonable person that the seller is either the lawful occupant of the premises or has the legal right to sell the items being offered for sale. The licensee shall record from the documentary evidence produced a description of the document, including the name or nature of the document, and, to the extent available, its date, the individual’s name and address thereon, and any account number appearing thereon.
3. Consignments, other than a firearm consigned to an auction house or secondhand dealer; provided, that no payment is made by the licensee to the consignor for a period of three calendar days after the date of the consignment.
4. Consignments of household items to an auction house if all consigned items are located at a residence and are auctioned at that residence.
5. Any firearm consigned to a licensee by a pawnbroker, secondhand dealer, or auction house licensed by the State of Arizona or any city within the State of Arizona.
6. Articles of used clothing received in trade, exchange, by purchase, or on consignment.
7. Articles of furniture received in trade, exchange, by purchase, or on consignment. For the purposes of this subsection, the word "furniture" does not include pianos or other musical instruments.
8. Goods or articles received in trade, exchange, or by purchase from a business engaged in the lawful liquidation of its business.
9. Goods or articles received in trade, exchange, by purchase, or on consignment from a secondhand dealer or auction house possessing a valid license issued pursuant to this article, or a pawnbroker possessing a valid license issued pursuant to Section 44-1627, Arizona Revised Statutes, as amended.
10. Used appliances.
11. Gold and silver bullion coins.
12. Gold, silver, platinum, rhodium or palladium bullion that has been assayed and is properly marked as to its weight and fineness.
13. Coins.
14. Commemorative medallions.
15. Collectible cards.
16. Used tires.
17. Titled vehicles or titled property, the transfer of title to which is required by the laws of the State to be evidenced by written instrument and recorded in an appropriate government office.
18. Donated items purchased or received from an organization described at Section 19-3.01(A)(1) if the receiving party obtains a written statement from the seller or donor at the time of the transaction that contains:
a. The name of the Section 19-3.01(A)(1) organization.
b. The name of the receiving party.
c. The date.
d. A general description of the goods transferred.
e. A verification that all items transferred were donated to the Section 19-3.01(A)(1) organization.
f. The printed name and signature of an authorized representative.
19. Audio records and cassettes.
20. Compact discs.
21. Digital video discs.
22. Video game software discs, cartridges and cassettes.
23. Secondhand books, magazines, handbills or posters.
B. All documentation obtained pursuant to this section shall be retained on the business premises for a period of two years and shall be made available for reasonable inspection by any peace officer of this State during regular business hours. (Ord. No. G-5462, § 8, 2009; Ord. No. G-5619, 2011; Ord. No. G-5919, 2014)