For Immediate Release
City Use Tax in effect January 1, 2010; no impact on small
Surprise AZ (December 2, 2009) Residents and businesses who make
purchases or rentals in sales tax free locales may have to pay a City Use Tax of
2.2% beginning January 1, 2010, as a change in the City Municipal Code takes
The City Use Tax will have no impact on the record keeping or tax paperwork
required of business operators in the City. All individuals and businesses are
already required to pay the State Use Tax of 5.6% on out-of-state purchases in
which sales tax was not applied, or items purchased for resale, over $200, in
which sales tax was not paid.
When are non-business individuals and businesses required to pay State
and City Use Tax?
• Non-business persons who purchase a single item out-of-state for $1,000
or less, which is used or stored in the City of Surprise, and no sales tax
was charged are exempt from City of Surprise use tax; but are
subject to the state use tax at the rate of 5.6%, if the non-taxed out-of-
state purchase was over $200.
• Non- business persons who purchase a single item out-of-state for over
$1,000, which is used or stored in the City of Surprise, or was purchased
for resale, and no sales tax was charged are subject to City of Surprise
Use Tax at the rate of 2.2%; and are subject to State Use Tax at the
rate of 5.6%, for a total rate of 7.8%.
• Businesses are required to pay the City Use Tax of 2.2% on any out-of-
state purchase, or item purchased for resale, in which sales tax was not
paid and the 5.6% state use tax, for a total rate of 7.8%.
Public Information Officer
16000 N. Civic Center Plaza
Surprise, AZ 85374
The use tax protects local businesses and equalizes the playing field with those
who do pay sales taxes, removing an incentive for people to buy tangible
personal property in locales outside of Surprise wher