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Arizona January 2016 Tax Rate Changes


 New local sales tax rates in Arizona, January 2016.

Local transaction privilege tax (TPT) changes have been announced for Arizona. They take effect January 1, 2016.

Apache Junction

  • 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%.

Marana

New agricultural machinery and equipment is added to the list of income producing capital equipment.

Phoenix

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
  • Hotels
  • 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%.

In addition to the above changes, there are changes to TPT in Sedona, Prescott Valley, Gilbert and Winslow.

License renewal

All businesses must renew their transaction privilege tax (TPT) license by January 1, 2016.

Simplify transaction privilege tax compliance in Arizona by implementing an automated solution. Learn how it works.


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.