Arizona Sales and Use Tax Facts

  • When making taxable sales in Tucson, UA departments generally should charge Arizona Transaction Privilege Tax (referred to hereafter as "sales tax") at 6.1% for most of the sales. If the UA department’s business location is in a different county, the tax rate may be slightly different.
  • The University does not charge city sales tax when making taxable sales.
  • The Financial Services Office prepares a monthly sales tax report and takes care of paying all tax that has been collected in association with taxable sales.
  • When making purchases, the University pays combined state and county sales tax at 6.1% on most of the purchases. If the UA department’s business location is not in Pima County, the tax rate may be slightly different. If vendors have a city business license and charge city sales tax, the University pays this tax as well (currently 2.5% in Tucson for most of the transactions. 4.5% for utilities and telecommunications).
  • Arizona statutes exempt certain purchases from sales tax.
  • When making purchases from out-of-state vendors, the University self-assesses Use Tax at 5.6%.
  • Arizona statutes exempt certain purchases from Use Tax.
  • Errors in the payment of sales tax should be handled directly with vendors.
  • Use tax errors are corrected internally – contact your fund accountant.
  • Refer to Policy 8.11 for more detailed information about departmental responsibilities, taxable sales, object codes and other related topics.