The following are definitions from the Scottsdale
Revised City Code:
Use Tax is a tax on items stored or used in the City which have been purchased or rented without privilege or sales tax equal to the Scottsdale use tax rate.
Use (of tangible personal property) means consumption or exercise of any other right or power over tangible personal property incident to the ownership thereof except the holding for the sale, rental, lease, or license for use of such property in the regular course of business.
How is Use Tax different from Privilege (Sales) Tax? Privilege tax is paid by the seller, lessor, or renter, but use tax is usually paid by the BUYER or LESSEE. Purchases or rentals which would have been taxable but have so far escaped the tax may be subject to use tax. Some common reasons are purchases from "out-of-state" and usage of inventory items by a business which originally purchased the items for resale.