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Arizona transaction privilege tax rate changes, 2017


 Local transaction privilege tax rates in Arizona.

2017 has seen quite a few local transaction privilege tax (TPT) rate changes in Arizona.

Because the TPT is typically passed on to the consumer, it feels much like a sales tax. But it isn’t. Instead of a tax on the transfer of tangible personal property or services, it’s a tax on the vendor for the privilege of doing business in Arizona. TPT rates can vary depending on the type of business activity (e.g., advertising vs. job printing).

Rate changes effective Dec. 1, 2017

Apache Junction is reducing the license fee for the transaction privilege and use tax from $50 to $2. However, this substantial drop doesn’t apply to all business classes. The license fee remains $50 for commercial rental, leasing, and licensing for use.

Pinetop-Lakeside is increasing the TPT rate from 2.5% to 3% for the following business classifications:

  • Advertising
  • Amusements
  • Commercial rental, leasing, and licensing for use
  • Communications
  • Contracting (prime, owner builders, and speculative builders)
  • Hotels
  • Job printing
  • MRRA amount (maintenance, repair, replacement, and alteration)
  • Manufactured buildings
  • Publication
  • Rental leasing, licensing for use of tangible personal property
  • Residential rental, leasing, and licensing for use
  • Restaurant and bars
  • Retail sales
  • Timbering and other extraction
  • Transporting
  • Utilities

Rate changes effective Nov. 1, 2017

Kingman is increasing the TPT rate from 2.5% to 3.5% as of Nov. 1, for the following business classifications:

  • Advertising
  • Amusements
  • Communications
  • Contracting (prime and owner builders)
  • Hotels
  • Job printing
  • MRRA amount (maintenance, repair, replacement, and alteration)
  • Manufactured buildings
  • Publication
  • Rental leasing, licensing for use of tangible personal property
  • Restaurant and bars
  • Retail sales
  • Timbering and other extraction
  • Transporting
  • Use tax inventory
  • Use tax purchases
  • Utilities

Rate changes effective Sept. 1, 2017

Tucson reduced the fees on recreation vehicle campers that meet the definition of hotels. Prior to Sept. 1, the rate was $4 per night; it’s now $2 per night.

Rate changes effective Aug. 1, 2017

TPT rates in Payson increased from 2.12% to 3% for the following business classifications:

  • Advertising
  • Amusements
  • Commercial rental, leasing, and licensing for use
  • Communications
  • Contracting (prime, owner builders, and speculative builders)
  • Hotels
  • Job printing
  • MRRA amount (maintenance, repair, replacement, and alteration)
  • Manufactured buildings
  • Publication
  • Rental leasing, licensing for use of tangible personal property
  • Restaurant and bars
  • Retail sales
  • Retail sales of food for home consumption
  • Timbering and other extraction
  • Transporting
  • Utilities

Rate changes effective March 1, 2017

Chino Valley reduced the TPT from 4% to 2% for manufactured buildings.

Rate changes effective Jan. 1, 2017

Nogales imposed a new 2% tax on wastewater utility services.

In addition to these rate changes, the mandatory electronic funds transfer (EFT) threshold for businesses changed as of July 1, 2017. Taxpayers with an annual TPT liability of at least $20,000 are now required to pay by EFT. Additional information is available from the Arizona Department of Revenue. For more details regarding local rate changes in Arizona, click here.

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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.