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%. Yavapai County does not have Use Tax. The region class for the State Use Tax, however, is still YAV. The business class for the State is “029” and the business class for Prescott Valley (PL) is “029.” The purchaser may either be licensed to remit the use tax on the retail purchase that was not taxed, or may remit the tax with a cover letter to the Arizona Department of Revenue. When a Sales Tax has been paid in the state of purchase at a rate equal to or greater than the Arizona and Prescott Valley use tax rates, the Arizona purchaser has no further liability.

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" code 030.

Show All Answers

1. How do I obtain a Transaction Privilege (Sales) Tax license?
2. What is a “Program City”?
3. What is the current transaction privilege tax (TPT) rate?
4. What are the other tax rates?
5. How do I pay Prescott Valley TPT?
6. What are the region codes and business classes for the Town of Prescott Valley for the TPT-EZ or TPT-2 form which is used for multi-location or multi-jurisdiction (replaces TPT-1)?
7. How do I calculate my taxes due?
8. What if I don’t collect the tax from my customers?
9. What are the tax factors?
10. How do I get answers to my specific questions?
11. Are sales to the Town of Prescott Valley taxable?
12. Do I need a Business License if I have a rental property?
13. Does the Town of Prescott Valley tax the rental of real property?
14. Is food taxable in Prescott Valley?
15. Are service, installation labor, and shipping taxable?
16. Are Internet sales taxable?
17. What is Use Tax?