Marketplace Facilitators/Remote Sellers Tax Rates

Tax rate tables are updated monthly; however, please note that tax rate changes do not necessarily occur every month.

TPT Tax Rate Tables - October 2019

 

This resource can be used to find the transaction privilege tax (TPT) rates for any location within the State of Arizona.

Address to look up:

• The address a marketplace facilitator should look up will vary depending on whether the marketplace facilitator is located in or outside Arizona. 
  • For marketplace facilitators located in Arizona, sales should be reported using: (a) the tax rates and codes of the marketplace facilitator’s location in Arizona, if the order information is received in Arizona, and (b) the tax rates and codes of the customer’s address, if the order information is received outside Arizona. 
  • Sales made through a marketplace facilitator outside Arizona are sourced to the shipping address of the consumer.  If there is no shipping address, the sale is sourced to the customer’s billing address. 
• Remote sellers should report taxes on sales to Arizona customers to the customer’s shipping address.  If there is no shipping address, the taxes should be reported to the customer’s billing address. 

 

Use the physical address, or if the shipping address is unknown, the billing address (i.e. sales of digital goods), the Map Locator link can be used to find the location. Select the appropriate business description and the state/county and city TPT rates along with the business codes needed to report gross receipts, which will be displayed.

Internet Explorer, Chrome and Firefox currently support this feature.

Arizona Transaction Privilege & Use Tax Rate Look Up Tool

 

Jurisdictions in Arizona may opt for a tiered rate structure for single-item purchases over a certain dollar amount. Each jurisdiction sets the price in which the tiered rate structure goes into effect, and the tax rate levied on the single-item for their jurisdiction. The tiered rate may be placed on the price of the entire single-item or the portion over the price where the tiered rate structure goes into effect.

For cities in which tiered rates “single-item over” applies, the entire sale applies to the “single-item over” code/rate.  Unlike “portion over,” any deductions amounts may be applied to the full amount of the sale.  See filing examples.

For cities with “portion over” tiered rates, apply the regular retail code/rate to the amount up to the portion over amount.  The portion over code/rate is then applied to the difference between over the “portion over” amount and the total price.  Any deduction amounts must be prorated.  See filing examples.

To determine what constitutes a “single-item” under the retail classification:

• A single-item does not refer to multiple transactions on a single invoice.
• A single-item does not include taxes, add-ons or sales price adjustments.
• A single-item does not include other related transactions (e.g., the sale price of a car, plus the extended warranty and tax).
• If a retailer does not break down related costs but instead invoices one lump sum, this entire amount is considered the single-item and subject to the application of the tiered rate calculation.
• If the invoice is an itemized invoice, the tiered rate application must be calculated separately on each individual item.

 

The State of Arizona does not have tiered rates.

The following county has tiered rates:

Pinal

 

The following cities and towns have tiered rates:

Apache Junction	Coolidge	Parker	Superior
Avondale	Douglas	Phoenix	Thatcher
Benson	Eager	Pinetop-Lakeside	Tolleson
Buckeye	Eloy	Quartzsite	Wickenburg
Camp Verde	Glendale	Safford	Wilcox
Casa Grande	Goodyear	San Luis
Clifton	Page	Springerville

 

TPT deduction codes are used to deduct income that is deductible or excludable from tax, as authorized by Arizona statutes and/or the Model City Tax Code. The same region codes used in reporting income are used to claim deductions of nontaxable or exempt income.

For instance, a pharmacy’s income from sales of prescription drugs is specifically exempt from TPT. The pharmacy will report all of its gross income under each correct region code and deduct the income sales of prescription drugs. Appropriate taxes will then be paid on all of the pharmacy’s taxable income not deducted.

 

TPT deduction code listings provide the deduction code number, a description (often abbreviated) of the code and the applicable business classification to which the deduction code applies. A deduction code may only be used for the business classification(s) to which it applies. For example, a retail deduction code cannot be used in any other classification unless specifically authorized by statute. The counties piggy-back the state TPT provisions, so a deduction applicable at the state level also applies to the counties. A deduction code can often be used under both state/county and city business codes. However, some deduction codes are either state/county or city-specific.

 

• Marketplace Facilitators and Remote Sellers Deduction Codes are coming soon.
• Statutory Authority Document are coming soon.

Please note: This document shows the full statutory text of each deduction.