OT: US sales tax (Arizona)

[Shane Gray]

G'day all.  Being in Australia, we haven't had much to do with US sales
taxes and our own taxation system was simplified to use a VAT (GST) here
about 10 years ago.

We now have an Australian based client opening up a manufacturing operation
in Phoenix, Arizona.

We would appreciate confirmation that our understanding of tax on sales as
following is correct:


Sales to Private Consumers

A privilege tax (PT) (commonly referred to as a sales tax) is imposed on all
sales within the state (Arizona) to private consumers - it consists of 3
percentages:
                        - State
                        - County
                        - City

The same PT is applied to ALL sales to all private consumers in Arizona (or
does this change based on ZIP code to determine county & city?)

No PT is applicable to sales to other states to private consumers.


Sales to other Businesses (Vendors)

PT is charged to vendors within state (Arizona) unless vendor has supplied
an Arizona Resale Certificate (Form 5000A) in which case they are exempt
from PT.

Once again sales to vendors outside of the state are exempt from PT.

Where sale is outside of state documentation has to be maintained that sale
is outside of state (e.g. address) and that it was delivered outside of the
state (e.g. connote details).


Use Tax (UT)

Where vendor sells product for client's in-house use (not for resale) e.g.
office consumables, the vendor charges a USE tax (UT). Where UT is charged
from another state, there is a liability to pay state (Arizona) the
difference between UT charged and state's UT rate - if the other state's UT
is less than Arizona's UT. If higher UT charged by other state, than no
credit is applicable.

Is the above correct?

Are there any other taxes on sales that are applicable?

Thanks
Shane.