Arizona tax rate changes, January 2018
- Sales Tax Rate Changes
- Dec 29, 2017 | Gail Cole
There will be a handful of changes to local transaction privilege tax (TPT) rates in Arizona as of Jan. 1, 2018. Rather than a sales tax, the Grand Canyon State imposes a tax on vendors for the privilege of doing business in the state. Like a sales tax, however, TPT is usually passed on to consumers. The Arizona Department of Revenue collects TPT for cities and counties.
Globe is eliminating its two-tiered tax rate and adding a 2.3% use tax for inventory and purchases.
Prescott is increasing the tax rate from 2% to 2.75% for the following business classifications:
- Contracting (prime, owner builder, and speculative builder)
- Feed at wholesale
- Job printing
- Manufactured buildings
- MRRA (maintenance, repair, replacement, or alteration)
- Rental, leasing, and licensing for use of tangible personal property
- Residential and commercial rental, leasing, and licensing for use
- Restaurant and bars
- Retail sales
- Retail sales of food for home consumption
- Timbering and other extraction
- Use tax from inventory and purchases
In addition, it’s now (slightly) more affordable to do business in Chandler — the city is reducing fees for obtaining or renewing business licenses from $50 to $2.
More details about the above changes are available from Arizona’s Model City Tax Code.
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