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Arizona tax rate changes, March 2018


 Local tax rates in Arizona to change March 1, 2018.

Updated 3.28.2018.

Local transaction privilege tax (TPT) in the City of Sedona is set to increase on March 1, 2018. The TPT is a tax on the privilege of doing business in Arizona. It’s not a tax on the sale but rather a tax on the vendor. Like sales tax, however, it’s commonly passed on to consumers.

In Arizona, more than 15 different business classifications may be taxed at different rates. Sedona taxes the following at the same rate, which will jump from 3% to 3.5% on March 1:

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

As of March 1, 2018, the local tax rate in Tucson is 2.6% on the following business classifications:

  • Amusements
  • Commercial rental, leasing, and licensing for use
  • Communications
  • Contracting — owner builder
  • Contracting — prime
  • Contracting — speculative builder
  • Job printing
  • Manufactured buildings
  • MRRA (maintenance, repair, replacement, or alteration)
  • Publication
  • Rental, leasing, and licensing for use of tangible personal property (TPP)
  • Restaurants and bars
  • Retail sales
  • Timbering and other extraction
  • Transporting
  • Utilities
  • Use tax on purchases
  • Use tax on inventory

The 2.6% rate is a 0.1% increase and is scheduled to remain in effect through December 31, 2018.

Additional details are available from the Arizona Department of Revenue.

The most effective way to manage transaction tax compliance in Arizona and other states is to use tax automation software. Learn more.


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.