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Transaction Privilege (Sales) Tax Information

 

 

The City of Avondale imposes a 2.5% privilege (Sales) tax, except on the following classes:

 

Class

Activity

Rate

Q

H

U

M

Retail

Hotel/Motel

Use Tax

Mining

1.5% on single item over $5,000

4.5% (transient lodging)

1.5%

1%

 

The legal responsibility to pay transaction privilege tax is that of the business. The business is permitted to pass the tax through to and collect the tax from its customers. Any tax so collected must be remitted to the city.

 

Use tax is imposed on the buyer. The seller may collect and remit this tax for the buyer.

 

The City of Avondale and the State of Arizona maintain separate and distinct privilege (sales) tax codes. There are circumstances where reporting requirements and the taxability of certain business activities are different between the two codes.

 

Privilege (sales) tax revenues are used to finance the cost of various City Services, such as, police, fire, parks and recreation, streets, mass transit, etc.

 

The Tax Returns are mailed to taxpayers on or about the last business day of each month. It is the taxpayer's responsibility to ensure that the mailing address on file is correct and that all tax reports are filed on a timely basis.

 

Tax reports not received by the last business day of the month in which the tax is due are subject to the following penalties and interest:

Penalties - not to exceed 25%

10% - Late Payment Penalty

5% - Late Filing Penalty Per Month

Interest

Taxes paid after the delinquency date will be assessed at the federal short-term rate plus three percentage points in accordance with 42-1123 of Arizona Revised Statues.  Interest continues to accrue until taxes are paid.

 

-         Business Classification & Deduction Codes

-         Transaction Privilege (Sales) Tax Return

-         Privilege License Tax/Business License Application Form

 

 

Taxable Activities

Gross receipts generated from the following types of business activities are subject to the City of Avondale privilege tax. This summary provides only broad guidelines as to which activities are taxable and is not intended to be a comprehensive list of such activities.

 

Advertising

(Classification O on tax return) Includes advertising by radio, television, direct mail, billboards, or any other means.

 

Amusements

(Classification A on tax return) Includes movies, concerts, circuses, sporting events, video games, tennis courts, golf courses, health spas, fitness centers, etc.

 

Contracting

(Classification C on tax return) Includes developers, speculative builders, general contractors, contractors, subcontractors, construction managers, and owner-builders.

 

Hotel/Motel

(Classification H on tax return) In addition to the two percent (2.5%) privilege tax on the rental of real property, there is a two percent (2%) transient lodging tax On any hotel, motel, apartment, or individual charging for lodging space to any person for less than thirty (30) consecutive days.

 

Printing

(Classification N on tax return) Includes copying, photo reproduction, engraving, embossing, micro-graphics, etc.

 

Mining

(Classification M on tax return) Includes mining, smelting, or producing minerals; felling, producing, or preparing lumber; extracting, refining, or producing oil or natural gas.

 

Publishing

(Classification N on tax return) Includes newspapers, periodicals, magazines, etc., including advertising and subscription income.

 

Rental of Real Property or Licensing for Use

(Classification R on tax return) Includes rental or lease of any real property, including commercial building(s), apartments, homes or other residential units.

 

Rental of Tangible Personal Property

(Classification J on tax return) Includes rental or licensing for use of equipment, automobiles, tools, furniture, coin-operated laundromats or carwashes, or any tangible personal property.

 

Restaurants & Bars

(Classification B on tax return) Includes the businesses that prepare and serve food and/or beverages for consumption on or off the premises, also the activity of catering.

 

Retail Sales

(Classification L on tax return) Includes the sale of any tangible personal property such as food, cars, furniture, equipment, etc.

 

Telecommunication Service

(Classification T on tax return) Includes telephone, telegraph, cable TV, monitoring security or alarm systems, computer interface, FAX, Internet, etc.

 

Transportation

(Classification T on tax return) Includes transporting for hire anything by railroad, aircraft, or pipeline.

 

Utility Services

(Classification T on tax return) Includes providing water, electricity, or gas.

 

Use Tax

(Classification U on tax return) Use tax is a one and one half percent (1.5%) tax on the purchase or rental of tangible personal property (such as, vehicles, equipment, supplies, etc.) on which an Equivalent City Tax has not been paid.