Arizona Sales Tax Rate Changes, Spring 2013

Get ready for the statewide Arizona sales tax rate change, June 1, 2013. It's big.

Get ready for the statewide Arizona sales tax rate change, June 1, 2013. It’s big.

In lieu of a sales tax, Arizona has a transaction privilege tax. The Arizona Department of Revenue has announced several upcoming transaction privilege tax rate changes.

Statewide Rate Change

A temporary 1% Arizona state tax is on track to expire May 31, 2013.

Town of Buckeye Decrease

The Town of Buckeye will reduce the transaction privilege tax on single item purchases of tangible personal property exceeding $1,999.99. Effective May 1, 2013, the rate decreases from 3% to 1.5%.

Town of Chino Valley Increase

The Town of Chino Valley has adopted an ordinance that will increase its transaction privilege rate by 1%, from 3% to 4%, effective June 1, 2013. This rate affects business classification code CV 000.

The following transaction privilege tax rates will not be affected by the new Chino Valley ordinance.

  • Pipeline remains at 3% (CV 004);
  • Metalliferous Mining remains at 0.10% (CV 001);
  • Jet Fuel remains at $0.015 per gallon (CV 008);
  • Rental Real Property remains at 3% (CV 013)

Any contracts entered into before the June 1, 2013, effective date are not affected by this rate change but are taxed at the previous rate of 3%. Pre-existing privilege tax contracts should be reported under the Privilege Tax Contracts under classification code CV 006.

La Paz County Increase

Effective June 1, 2013, the La Paz County Judgment Tax will increase.

The rate for class Non metal Mining (CV 002), increases from 4.062% to 4.375%.

The rate for Transient Lodging (CV 025) decreases from 8.15% to 7.7%.

The rate for Use Tax Purchases (CV 029), Use Tax from Inventory (CV 030), and Use Tax Direct Payments (CV 129) decreases from 6.6% to 5.6%.

The Jet Fuel Excise Tax (CV 049) increases from 3.965 cents to 4.27 cents.

The total combined tax rate for most other transactions decreases from 8.1% to 7.6%.

The tax rate increase does not apply to contracts entered into by prime contractors and owner builders on or before February 28, 2013, assuming verifying documentation.

How does your business keep track of sales tax rate changes?

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photo credit: mnorri via photopin cc

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