Use Tax Exemptions
The following tangible personal property is exempt from use tax:
- Purchases from persons not in the business of selling tangible personal
property (casual sales).
- Any purchases on which an equivalent city tax has already been paid, even
though it was to another city in or out of Arizona.
- Individuals who are not in business are exempt from the tax on purchases of
$1,000.00 or less per item on items bought outside of the City. Larger
purchases are taxable. Individuals who buy motor vehicles outside of the
State are required to pay the tax at the time they register the vehicle
unless they have paid equivalent tax to another city. This exemption is not
available to businesses.
- Items which you first put into use in another location outside of the City.
- Items purchased for resale.
- Charges for delivery, installation and other customer services.
- Charges for repair services.
- Charges for warranty, maintenance, and service contracts.
- Income-producing capital equipment.
- Rental equipment and rental supplies.
- Mining and metallurgical supplies.
- Motor vehicle fuel and use fuel which is used upon the highways.
- Tangible personal property purchases by a construction contractor, but not
an owner-builder which becomes part of a building project.
- Rental, leasing, or licensing for use of film, tape, or slides by a theater,
radio station, television, or subscription television system.
- Food served to patrons for a consideration.
- Property acquired by a qualifying hospital or health care organization.
- Food for home consumption.
- Paintings, sculptures, or similar works of fine art purchased from the
- Aircraft purchased for use outside of the state.
- Stocks, bonds, options, and similar securities.
- Platinum, bullion, and monetized bullion except coins purchased primarily
for numismatic value.