Arizona tax rate changes
- Sales Tax Rate Changes
- Aug 16, 2016 | Gail Cole
A number of local transaction privilege tax (TPT) rate changes are set to take effect in Arizona in the coming months. In addition, there is a new local rate as of August 1.
In Parker, the rate for residential rental, leasing, and licensing for use is 2%. See the August 2016 rate table for additional rates and business codes.
Beginning September 1, 2016, the Town of Gila Bend is repealing the tiered structure of use tax and eliminating the following business classes/codes:
- Use tax purchases (gross receipts < $500,000)
- Use tax purchases (gross receipts > $500,000)
Effective October 1, the following rate increases take effect in South Tucson:
- Advertising: from 4.5% to 5.5%
- Amusements: from 4.5% to 5.5%
- Contracting – prime: from 4.5% to 5.5%
- Contracting – speculative builders: from 4.5% to 5.5%
- Contracting – owner builders: from 4.5% to 5.5%
- Hotel/motel additional tax: from 1.5% to 2%
- Hotel: from 2.5% to 3.5%
- Job printing: from 4.5% to 5.5%
- Manufactured buildings Job printing: from 4.5% to 5.5%
- Publication Job printing: from 4.5% to 5.5%
- Rental, leasing & licensing for use of TPP: from 4.5% to 6.5%
- Telecommunications services: from 4.5% to 5%
- Transporting: from 4.5% to 5%
- Utility services: from 4.5% to 5%
In addition, a new commercial lease tax of 4% takes effect October 1.
The rate for the following business classes in Globe increases from 2% to 2.3% on November 1:
- Contracting – prime
- Contracting – speculative builders
- Contracting – owner builders
- Job printing
- Manufactured builders
- Timbering and other extraction
- Rental, leasing, & licensing for use of TPP
- Restaurant and bars
- Retail sales
- Retail sales food for home consumption
- MRRA amount
The City of Winslow is extending the 2% transaction privilege sales tax on hotel/motel (additional tax) as of July 1, 2017. It will expire on or after June 30, 2037.
Additional information, including business classifications and codes, is available at Model City Tax Code.
As the variety of business classifications illustrates, keeping up with tax rate changes is particularly challenging in Arizona. Sales tax automation simplifies sales tax compliance in all states. Learn how it works.