When making taxable sales in Tucson, University departments generally should charge Arizona Transaction Privilege Tax (referred to hereafter as "sales tax") at 6.1% for most of the sales. If the University 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 University 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 2.6% 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.