The Arizona Department of Revenue recently released Private Taxpayer Ruling LR 21-003 (dated May 27, 2021), finding that gross income arising from the provision of temporary use of digital information and data is subject to the transaction privilege tax (TPT). The taxpayer is an information and analytics company that provides primarily publically available information and data from multiple sources that is continually updated, sorted, and filtered for each customer. Customers pay a subscription fee to remotely access the data that is housed on the taxpayer’s servers located outside Arizona. Customers only receive the right to use the data, and do not receive access to software. The TPT is imposed on tangible personal property, which is any property that “may be seen, weighed, measured, felt or touched or is in any other manner perceptible to the senses.” Arizona has broadly interpreted that definition of tangible personal property to include electricity, electronic delivery of software, and even music played from a jukebox. Based on this broad understanding of tangible personal property and the application of the “dominant purpose” and “common understanding” tests, the Department concluded that the rental of data is a taxable sale of tangible personal property, regardless of how the data is delivered.