Arizona Form 140ez - Resident Personal Income Tax Return - 2013 Page 31
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32Have You Paid Your Use Tax? … What’s That?
A use tax is levied on any person who uses, stores or consumes any tangible
personal property upon which no tax has been collected by a retailer. The Arizona
state use tax rate is 5.6%; some cities also impose a city use tax.
An Arizona purchaser is liable for use tax on goods purchased from an out-of-
state vendor that did not collect the use tax. Internet sales are also subject to use
tax. There is no exemption from use taxes on Internet purchases. The Internet Tax
Freedom Act is a moratorium on any imposition of new taxes. The Arizona use tax
law has been in effect since the 1950s.
Any purchase of a vehicle, aircraft, boat, or any other tangible personal item
purchased from an out-of-state vendor is also subject to the use tax if no tax was
paid. Items brought into the State of Arizona that were subject to U.S. Customs
may also be liable for the use tax as well, minus your personal U.S. Customs
exemption.
Basically, use taxes and transaction privilege taxes (often referred to as sales taxes)
are complementary taxes. In effect, you must pay one or the other but never both.
If you purchase an item from a mail order entity and that entity also has an Arizona
location, then you may be liable for a transaction privilege tax instead of a use tax.
Use taxes were instituted to prevent unfair competition by out-of-state vendors
in the Arizona market. The passing of a use tax law helped create a more suitable
balance in this area.
So how does an individual report a use tax? Currently, you should calculate your
purchase amount, multiply that amount by 5.6% and remit this total along with a
cover letter that includes your name, address and taxpayer identi¿ cation number
to the Arizona Department of Revenue along with a copy of the original invoice.
Failure to comply may result in penalties and interest.
If you have questions regarding use tax or how to report your use tax, please
contact Taxpayer Information and Assistance by calling 602-255-2060.
Mail your cover letter, payment and copy of invoice to:
Arizona Department of Revenue
Use Tax Unit, Room 620
1600 West Monroe Street
Phoenix, AZ 85007
(10/13)
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