Notice from the Arizona Department of Revenue

Pinal County transportation excise tax rates

Pinal County has requested the Arizona Department of Revenue begin collecting a transportation excise tax beginning with the reporting period starting April 1, 2018. 

According to Pinal County, the rates applicable to taxpayers in Pinal County starting April 1, 2018 are as follows:

1/2 of 1% for the following business classifications identified in A.R.S. Title 42, Chapter 5, Article 2:

Transporting classification;
Utilities classification;
Telecommunications classification;
Pipeline classification;
Private car line classification;
Publication classification;
Job printing classification;
Prime contracting classification;
Amusement classification;
Restaurant classification;
Personal property rental classification;
Retail classification and amounts equal to retail transaction privilege tax due pursuant to A.R.S. Section 42-5008.01

11/20 of 1% for the following business classifications identified in A.R.S. Title 42, Chapter 5, Article 2:

Transient lodging classification;
Online lodging marketplace classification

5/16 of 1% for the mining classification (A.R.S. Section 42-5072);

10% of the rate prescribed by A.R.S. Section 42-5352(A), relating to the jet fuel excise tax; and;

On the use or consumption of electricity or natural gas by retail electric or natural gas customers in the County who are subject to the use tax under A.R.S. Section 42-5155 at a rate equal to the transaction privilege tax rate described above applying to persons engaging or continuing in the County in the utilities transaction privilege tax classification,

With respect to application of the tax to the business classification described in A.R.S. Section 42-5010 (A)(1)(l), the transportation excise tax rate shall be at 0.5% as applied to the first $10,000 of gross income from the sale of a single item of tangible personal property, and above $10,000 of gross income from the sale of a single item of tangible personal property the measure of the Transportation Excise Tax shall be a rate of 0.0%.

Please Note: A lawsuit has been filed challenging the legality of all of the above taxes, and a motion has been filed with the Arizona Tax Court to prevent the Department of Revenue from collecting this tax.  A copy of this motion can be found on the Department’s website at https://www.azdor.gov/ClassActionNotices.  The motion includes Pinal County Regional Transportation Authority Resolution No. 2018-01, which resolution provides information concerning the collection of the transportation excise tax.

Monday, March 12, 2018