State Sales Tax Rates

State Sales Tax Rates Arizona State Sales Tax 2014

Arizona Sales Tax 2014
Arizona State Sales Tax for 2014 Maximum Municipal Sales Tax

6.60%

4.00%

What is the Arizona Sales Tax?

The Arizona state sales tax is 6.6%, with a maximum possible sales tax (including local and municipal sales taxes) of 10.6%.

Local governments in Arizona are allowed to add a local sales tax of up to 4 percent on top of the AZ state sales tax for all qualifying sales in their jurisdiction - so the actual sales tax paid on any purchase in Arizona can be up to 10.6% depending on location.

Arizona has a gross receipts tax, the Transaction Privilege Tax (TPT), which takes the place of a standard sales tax. Unlike a sales tax, Arizona's TPT is levied on the merchants conducting the transaction, although merchants are allowed to pass some of this tax on to the customer. Localities such as cities and counties within Arizona can add as much as 6% to the Arizona state tax in local taxes, which are collected in the same way.

Groceries and prescription drugs are specifically exempt under state statutes from Arizona's TPT, although cities and counties may charge a tax on the purchase of food if they so choose. Phoenix, the capital of Arizona and its largest city, levies a TPT of 2%.

What sales are exempt from the Arizona Sales Tax?

Arizona Sales and Use Tax Rates

Many states set special sales tax rates for certain types of goods like groceries or clothes, and may completely exempt certain transactions from state and local sales taxes. Arizona completely exempts unprepared food and groceries, and prescription drugs from the Arizona state sales tax.

Arizona does not have special sales tax rates for certain types of purchase, a common practice in many states for goods such as food and clothing.While many other states also collect a special (and often higher) sales tax on prepared and restaraunt food, Arizona does not have a specific restaraunt sales tax.

Generally, the Arizona sales tax is collected only from the end consumer, or the end user of the product. Customers buying products in bulk, as a business-to-business transaction, or buying with the intent to resell do not have to pay the Arizona sales tax if they provide the seller with a Arizona Sales Tax Exemption Certificate at the time of purchase. Most states will accept the Uniform Sales and Use Tax Certificate for this purpose, which is available from the Multistate Tax Commission here.

Internet Sales Tax, or tax on purchases made over the internet, is currently a gray area in many states' tax codes. While most states can collect sales tax on internet purchases made within the state (the vendor and consumer are both located in Arizona), taxation of interstate internet transactions is much more complicated.

Currently New York, Rhode Island, North Carolina, Colorado, and Illinois have some form of online sales tax that also handles interstate transactions. For details on how Arizona handles taxation of online sales, read more about online sales taxes in the United States.

Resources:

[1] Table of state sales taxes on Wikipedia
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#By_jurisdiction

[2] Arizona sales tax information on Tax-Rates.org
http://www.tax-rates.org/Arizona/sales-tax

[3] Table of state sales, use, and excise taxes by The Tax Foundation
http://www.taxfoundation.org/taxdata/show/245.html

[4] State level taxation resources on IRS.gov
http://www.irs.gov/businesses/small/article/0,,id=99021,00.html