Avalara Taxrates > Blog > Sales Tax Rate Changes > Arizona tax rate changes, January 2019

Arizona tax rate changes, January 2019

  • Jan 9, 2019 | Gail Cole

Arizona, Grand Canyon

At least one local transaction privilege tax (TPT) rate change took effect in Arizona on January 1, 2019. The TPT is Arizona’s version of a sales tax: Instead of taxing the transaction, or sale, it taxes the vendor for the privilege of doing business in the state. However, the TPT feels like a sales tax to customers because vendors typically pass the tax on to them.

Different business activities may be subject to different tax rates in Arizona, as evidenced by the following rate change.

On January 1, 2019, the Town of Marana decreased the TPT rate from 2.5% to 2% for the following business classifications:

  • Amusement
  • Commercial rental, leasing, and licensing for use of real property
  • Hotels
  • Job printing
  • Manufactured buildings
  • MMRA amount
  • Publication
  • Rental, leasing, and licensing for use of tangible personal property
  • Rental occupancy
  • Restaurants and bars
  • Retail sales
  • Timbering and other extraction
  • Transporting
  • Use tax from inventory
  • Use tax purchases

Rates for the following business classifications in Marana dropped from 4.5% to 4%:

  • Communications
  • Utilities

There’s no change to the rates for the following business classifications in Marana:

  • Contracting, owner builder
  • Contracting, prime
  • Hotel/motel (additional tax)
  • Severance, metal mining

Finally, Marana no longer has the following business classifications:

  • Retail sales, single item portion over $5,000
  • Use tax purchase, single item portion over $5,000

TPT license renewals

All licensed businesses in Arizona were required to renew their Arizona Transaction Privilege Tax license by January 1, 2019.

Need to register for sales tax or renew your business license in Arizona or other states? Avalara Licensing can help.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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.