Arizona sales tax rate changes, February 2019
- Feb 1, 2019 | Gail Cole
Two jurisdictions in Arizona are changing the local tax rates on February 1, 2019. Although commonly referred to as sales tax, Arizona actually imposes a transaction privilege tax (TPT) on vendors for the privilege of doing business in the state.
Different business activities, or classifications, may be subject to different tax rates within one jurisdiction. For example, in Goodyear, the rate for advertising is 2.5%, the rate for contracting is 3.5%, the rate for retail sales of food for home consumption is 2%, and the rate for restaurants and bars is 4%. However, it isn’t unusual for many classifications within a district to share the same rate.
Starting February 1, 2019, Guadalupe is adding a 4% use tax on purchases and a 4% use tax on inventory (i.e., items pulled from inventory for use). However, the Town of Guadalupe is exempt from both.
Also, as of February 1, Scottsdale is increasing the TPT from 1.65% to 1.75% for the following business codes:
- Commercial rental, leasing, and licensing for use
- Contracting, owner builder
- Contracting, prime
- Contracting, speculative builder
- Feed at wholesale
- Job printing
- Maintenance, repair, replacement, or alteration (MRRA) amount
- Manufactured buildings
- Residential rental, leasing, and licensing for use
- Rental, leasing, and licensing for use of tangible personal property
- Restaurant and bars
- Retail sales
- Retail sales of food for home consumption
- Timbering and other extraction
- Wastewater removal services
Scottsdale is also increasing the use tax rate on purchases and items pulled from inventory from 1.45% to 1.55%. Rate increases that take effect February 1, 2019, will be in place for 10 years and will fund transportation improvement projects. See the Arizona Department of Revenue for additional details.