By Sonja Haller | The Republic | azcentral.com
Carefree has adopted a use tax on Internet purchases that could bump yearend revenues.
The tax, from the state’s Model City Tax Code, applies to online out-of-state purchases in which sales tax hasn’t been collected. Exempt are purchases under $1,000 and prescription drugs. The Town Council in a 6-0 vote this week adopted the ordinance, which becomes effective in January.
Other nearby communities, such as Fountain Hills and Cave Creek, already collect this use tax to fund town services. Carefree tax auditor Al Holler said Cave Creek has collected up to $100,000 in a year.
The town will assess a 3 percent tax on an out-of-state purchase price.
