How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lev Your Own Question

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 22980
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I would like to purchase a historical art painting from an

Resolved Question:

I would like to purchase a historical art painting from an art gallery in Canada and have it shipped to my home in Arizona. I understand that that Arizona monitors declared values on UPS and Fedex shipments and will charge the recipient a use tax, sales tax, priviledge tax or whatever they want to call it at the time. The tax is meant to be the equivalent of a sales tax if purchased in AZ. Can you advise the tax rate? Is art not considered to be used? This one has had several owners, I am sure. If this tax is indeed real, what do they do if one does not pay it? Can they assess penalties, confiscate, etc? What if I just bring it to AZ in my luggage? Seems like a very draconian tax law?
Thanks.
Submitted: 3 years ago.
Category: Tax
Expert:  Lev replied 3 years ago.

LEV :

Hi and welcome to Just Answer!


I understand that that Arizona monitors declared values on UPS and FedEx shipments and will charge the recipient a use tax, sales tax, privilege tax or whatever they want to call it at the time.


The Arizona transaction privilege tax is commonly referred to as a sales tax; however, the tax is on the privilege of doing business in Arizona and is not a true sales tax. Although the transaction privilege tax is usually passed on to the consumer, it is actually a tax on the vendor.
You are correct that all states are short of revenue and nowadays are more aggressive in their collection efforts.


The tax is meant to be the equivalent of a sales tax if purchased in AZ.


The state use tax rate is equal to the state transaction privilege tax rate. Any person who uses, stores or consumes any tangible personal property upon which tax has not been collected by a retailer shall pay use tax. An Arizona purchaser is liable for use tax on goods purchased from an out-of-state vendor that did not collect the use tax


Can you advise the tax rate?


TPT rates are based on your actual location. Please find current rates here - http://www.azdor.gov/Portals/0/TPTRates/201106.pdf


You may also use this online too – select your county or city - http://www.azdor.gov/Business/TransactionPrivilegeTax/TPTRates.aspx


Is art not considered to be used?


The art is a tangible property that you are going to use, store or consume in AZ. If you purchase it for resale – not for use – there will be different rules.


This one has had several owners, I am sure. If this tax is indeed real, what do they do if one does not pay it?


Two options – either AZ DOR would never learn that the TPT was not paid and it will remain uncollected or AZ DOR will send as a collection letter.


Can they assess penalties, confiscate, etc?


Yes – there will be penalties and interest for unpaid TPT. Yes – potentially AZ DOR may garnish your bank account, wages or other income, any property you own (even jointly) to satisfy the tax debt.


What if I just bring it to AZ in my luggage?


That will be a violation or the law. I may not say if the AZ DOR will find out about the violation or not – but there will not be statute of limitation for them to collect.


Seems like a very draconian tax law?


The tax law has never been fair. However TPT money is a large part of state and local budgets.
Sorry if you do not like the answer.
Let me know if you need any help or clarification.

Customer:

Then if my grandmother sends me a 100 year old quilt and puts an insurance value on the waybill, the AZ gov will come a knocking?

LEV :

I may not know how AZ DOR tracks unpaid taxes. You definitely may purchase and bring it to AZ in your luggage - that is not a violation. However - under the current law - you are required to report that purchase and pay the use tax. If you do not do that - that will be a violation of the tax law.
Many people do that and tax liability was never assessed. However some are gelling collection letters in years after the purchase.

Customer:

Wow! Thanks LEV, I accept your answer. No use shooting the messenger.

Lev, Tax Advisor
Category: Tax
Satisfied Customers: 22980
Experience: Taxes, Immigration, Labor Relations
Lev and 5 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
Lev
Lev
Tax Professional
22980 Satisfied Customers
Taxes, Immigration, Labor Relations