This tax is levied on the seller, not the purchaser. The seller may pass the burden of the tax on to the purchaser. However, the vendor is the taxpayer and is ultimately liable to Arizona for the tax. The transaction privilege tax is imposed on the business of selling tangible personal property at retail. The tax base for the retail classification is the gross proceeds of sales or gross income derived from the business.
All retail sales are subject to tax unless specifically exempted by statute.
The use tax is a complementary tax to the transaction privilege tax. Arizona imposes use tax on purchases of tangible personal property from retailers, which is used, stored, or consumed in Arizona. The deduction does not include chemicals that are used or consumed in activities such as packaging, storage or transportation. Webster s at 1133. Webster s at 1134.