In late August, 2015, Phoenix, Arizona voters approved Proposition 104 to increase the city sales tax from .04% to .07% effective January 1, 2016 for 35 years. The current Phoenix sales tax rate (or transaction privilege tax rate) of 8.3% will rise to 8.6%. The additional revenue will be used to fund existing bus service, additional light rail routes and improvement of street infrastructures among other projects.
Also beginning January 1, 2016, the Arizona Department of Revenue will be the point of administration and collection of all State, county and municipal transaction privilege taxes. One return will be filed for cities and municipalities that are currently filed separately. These cities include Phoenix, Apache Junction, Avondale, Chandler, Douglas, Flagstaff, Glendale, Mesa, Nogales, Peoria, Prescott, Scottsdale, Sedona, Tempe and Tucson. This is part of The Arizona Department of Revenue’s TPT Simplification program.
By Lisa Smith, EA