‘Use’ Tax May Boggle Taxpayers

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Arizona residents who shop online or travel out of state will now be reminded to pay a “use” tax on their 2011 tax return.

A state bill passed April 15 requires a new line-item for goods purchased from your virtual basket or won at auction on eBay where you didn’t pay sales tax. (The tax is often not charged when buying across state lines.)

By I&O Staff Writers

According to Kerry Freeman of Freeman Income Tax in Anthem, “This obligation to pay use tax on such purchases actually has been around for decades. What’s new is the requirement to list the tax amount on your return—as a friendly reminder to pay it.”

Now you tell us! How should shoppers calculate what they owe?

“This is a tracking nightmare to say the least,” Freeman said. “For purchases made sometime over the last eight months, you have no shortcut but to review your receipts and add them up.”  Right, our receipts. 

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