Arizona January 2016 Tax Rate Changes
- Sales Tax Rate Changes
- Dec 14, 2015 | Gail Cole
- The sunset date of the 0.2% TPT rate increase is extended until September 1, 2026.
- A use tax is adopted, with a rate of 2.4%.
- A two-tier tax rate is enacted for any single item of tangible personal property with a sales price exceeding $2,000. The first $2,000 is taxed at 2.4%; any amount above that is taxed at 1.4%.
New agricultural machinery and equipment is added to the list of income producing capital equipment.
The tax rate on the following transactions is increased from 2% to 2.3%:
- Amusements, exhibitions, and similar activities
- Construction contracting – Construction contractors
- Construction contracting – Speculative builders
- Construction contracting – Owner-builders who are not speculative builders
- Job printing
- Manufactured buildings
- Timbering and other extraction
- Publishing and periodical distribution
- Rental occupancy
- Rental, leasing, and licensing for use of real property
- Rental, leasing, and licensing for use of tangible personal property
- Restaurants and bars
- Retail sales – Measure of tax; burden of proof; exclusions
- Transporting for hire
- Use tax; imposition of tax; presumption
In addition, Phoenix is adopting a two-tier tax rate for any single item of tangible personal property with a sales price exceeding $10,000. The first $10,000 is taxed at a rate of 2.3%; any amount above that is taxed at 2%.
All businesses must renew their transaction privilege tax (TPT) license by January 1, 2016.
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