US sales tax (Arizona)

[Richard Kreiss]

> -----Original Message-----
> From: filepro-list-bounces+rkreiss=verizon.net at lists.celestial.com
> [mailto:filepro-list-bounces+rkreiss=verizon.net at lists.celestial.com] On
> Behalf Of Shane Gray
> Sent: Wednesday, June 22, 2011 10:11 PM
> To: 'filePro Mailing List'
> Subject: OT: US sales tax (Arizona)
> 
> 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.

Based on my experience after living in New York, I would guess that this is
not based on zip code as in city can have more than one zip code.

My assumption is that the state tax is fixed throughout the state; the
county tax can vary from county to county.  The city tax would be fixed
within the city but can vary from city to city.

Therefore, I would not use the zip code for calculating what tax to charge.



Richard Kreiss
GCC Consulting
rkreiss at gccconsulting.net