Avalara Taxrates > Blog > Sales Tax Rate Changes > Arizona tax rate changes - Avalara

Arizona tax rate changes


 Arizona sales tax rate changes.

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.

August 2016

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.

September 2016

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)

October 2016

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.

November 2016

The rate for the following business classes in Globe increases from 2% to 2.3% on November 1:

  • Advertising
  • Amusement
  • Contracting – prime
  • Contracting – speculative builders
  • Contracting – owner builders
  • Job printing
  • Manufactured builders
  • Timbering and other extraction
  • Publication
  • Hotels
  • Rental, leasing, & licensing for use of TPP
  • Restaurant and bars
  • Retail sales
  • Retail sales food for home consumption
  • MRRA amount
  • Communications
  • Transporting
  • Utilities

July 2017

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.

photo credit: helveticaneue via photopin cc


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.