Arizona State Rate Change, June 1, 2013

The Arizona Temporary Tax will expire May 31. New rates will take effect on June 1, 2013.

The Arizona Temporary Tax will expire May 31. New rates will take effect on June 1, 2013.

Back in 2010, voters in Arizona opted to create a Temporary Tax that effectively raised the state transaction privilege tax from 5.6% to 6.6%. That Temporary Tax will expire on May 31, 2013. Beginning June 1, 2013, the state rate “on most transactions” will be 5.6%.

To Change

According to a notice released by the Arizona Department of Revenue (AZDOR), the transaction privilege tax rate decrease will impact the following categories:

  • Amusement;
  • Communications;
  • Contracting-Prime and Owner-Builder;
  • Job Printing;
  • Personal Property Rental;
  • Private (Rail) Car;
  • Pipeline;
  • Publication;
  • Restaurants and Bars;
  • Retail;
  • Transient Lodging;
  • Transporting; and
  • Use Tax.

New State and Local Tax Rates for the above listed impacted taxes, effective June 1, 2013

  • Cochise County: 6.10%
  • Coconino County: 6.725%
  • Gila County: 6.60%
  • La Paz County: 7.60%
  • Maricopa County: 6.30%
  • Mohave County: 5.85%
  • Pima County: 6.10%
  • Pinal County: 6.70%
  • Santa Cruz County: 6.60%
  • Yavapal County: 6.35%
  • Yuma County: 6.70%
  • All Other Counties: 6.10%

No Change

The following categories will not be affected by the statewide rate change:

  • Commercial Lease;
  • Severance-Metalliferous Mining;
  • Telecommunications Devices;
  • Municipal Water;
  • Jet Fuel Use Tax; and
  • 911 Telecommunications.

Local Tax Rate Change

The local tax rate for La Paz County will increase, effective June 1, 2013. The notice points out that, with the statewide tax decrease, “most rates in La Paz County will decrease overall,” but “some will increase.”

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One Response to Arizona State Rate Change, June 1, 2013

  1. Nina Brand says:

    Are licensed (or not) contractors (electrical, roofers, construction etc.) supposed to collect tax if the work only consists of labor?

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