Did you know your business could be responsible for remitting use tax to Arizona Department of Revenue?
What is use tax?
Use tax is sales tax remitted to the state by the consumer. It is only due under the following conditions:
- The supplier did not collect and remit sales tax.
- The purchase is made outside of Arizona.
- The items are used in Arizona.
Why the imposed use tax?
Use taxes aim to preserve sales tax revenues and protect local retailers from competition. This prevents preferential treatment for retailers that live in areas with little to no sales tax rates. Use tax insures you pay the tax you would have been charged if you did business inside your “tax jurisdiction”.
The Arizona use tax rate is currently 5.6 percent, plus your cities rate. For more information on use tax, failure to pay penalties and purchase exemptions click here.