• The City has adopted a 2% use tax, which becomes effective July 1, 2003. Ordinance #9840
The use tax applies to merchandise that is purchased by local businesses and residents for use, consumption or
storage within the City on which a city privilege (sales) tax has not previously been paid. It is paid on the line
designated use tax on the privilege (sales) tax return. Other persons with a use tax liability will receive a
separate tax return. Retail sales of tangible personal property that are exempt from privilege tax are also exempt
from use tax. Purchases by individuals of items costing less than $1,000.00 are exempt. This exemption does
not apply to businesses.
Some typical cases where the Use Tax is applicable would include the following:
¾ A store, motel, restaurant, office or nonprofit facility is opened in Tucson. Fixtures and equipment are
purchased from out-of-state and delivered to Tucson. The seller added no municipal sales tax to the
price. The user in Tucson is subject to Use Tax.
¾ An owner or lessor of real property acts as his own general contractor for construction of a project in
Tucson. They purchase carpeting, furniture and building materials out-of-state. The seller ships the
items to Tucson without charging a municipal sales tax. The buyer is subject to Tucson Use Tax.
¾ A lumberyard in Tucson purchases a forklift or other heavy equipment from a dealer located in an
unincorporated area, which does not charge any municipal sales tax. The buyer is subject to Tucson
¾ An individual (resident of Tucson) purchases an automobile for use in the city from a dealer outside the
city or via the Internet and does not pay a municipal sales tax. The purchaser owes Tucson Use Tax.
¾ The person above purchases the auto in another state and is charged a municipal sales tax for the city in
which the dealer is located. The purchaser does not pay any additional Tucson Use Tax, provided
evidence exists that the sales tax was paid to the other city.
¾ An individual engage