Individuals who purchase taxable products from out-of-state locations, but pay no sales tax, are responsible for paying use tax. In addition, individuals who purchase taxable merchandise over the internet, and that merchandise is used or consumed in Arizona, must pay use tax.
Casual sales between individuals are the exception and not subject to use tax. Items purchased for use in Arizona from people who make isolated or occasional sales, and who are not engaged in the business of selling tangible personal property at retail, are not subject to use tax. (via ADOR)
For Use Tax examples, please click here.
What is Arizona's Use Tax rate?
The state use tax rate is the same as the state transaction privilege tax (TPT) rate (usually referred to as sales tax), currently at 5.6 percent. In addition to state use tax, cities also assess use tax through TPT. Please refer to the TPT tax rate table.
How do I pay my Arizona Use Tax?
To pay your Arizona Use Tax, please mail your payment to:
Arizona Department of Revenue
PO Box 29010
Phoenix, AZ 85038-9010
What if I don't pay my Arizona Use Tax?
Arizona's Department of Revenue administers routine and special audits to encourage compliance. If someone does not pay Arizona's Use Tax, they can be subject to penalties and interest.
For more information regarding Arizona's Use Tax, please visit Arizona Department of Revenue.