What is Use Tax?

Use Tax is levied on retail purchases from out-of-state vendors, and is generally noted as “sales” tax on the vendor’s invoice. It was enacted with the specific intent to prevent unfair competition from out-of-state vendors. If the out-of-state vendor does not specifically charge the use (or “sales”) tax, then the Arizona purchaser is responsible for remitting the tax. The Arizona rate for Use Tax is 6.6% and the Town of Prescott Valley rate is 2.83%. 

Use tax is also levied on businesses that purchase items for resale and subsequently use those items internally instead of selling them, i.e. "Use Tax From Inventory."

Show All Answers

1. How do I obtain a Transaction Privilege (Sales) Tax license?
2. What is the current transaction privilege tax (TPT) rate?
3. What are the other tax rates?
4. How do I pay Prescott Valley TPT?
5. What are the region codes for reporting tax for the Town of Prescott Valley?
6. How do I calculate my taxes due?
7. What if I don’t collect the tax from my customers?
8. What are the tax factors?
9. How do I get answers to my specific questions?
10. Are sales to the Town of Prescott Valley taxable?
11. Does the Town of Prescott Valley tax the rental of real property?
12. Is food taxable in Prescott Valley?
13. Are service, installation labor, and shipping taxable?
14. Are Internet sales taxable?
15. What is Use Tax?