In lieu of a sales tax, Department of Revenue has announced several upcoming transaction privilege tax rate changes.
Statewide Rate Change
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.