Construction Contract Cost Plus Withholding Tax In Pima
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The following tables contain the rates for Transaction Privilege and other taxes imposed by the State of Arizona, the counties, and 91 Arizona cities/towns: • Table 1 provides the tax rates which combine the state's transaction privilege tax rate of 5.6% and the county excise tax rate.
Businesses that perform the following activities are subject to TPT and must be licensed. retail sales. restaurants/bars. hotel/motel (transient lodging) commercial lease. amusements. personal property rentals. contracting. severance (metal mining)
Product or Service Exemptions: Certain products and services may be exempt, or partially exempt, in many states. These categories can include clothing, professional services, food, and other items.
Generally, Arizona imposes a sales tax on services if they are considered to be tangible personal property repair, replacement, or maintenance services.
Services are generally not taxable in Arizona, with the following exceptions: amusements. personal property rentals. contracting.
Services are generally not taxable in Arizona, with the following exceptions: amusements. personal property rentals. contracting. severance (metal mining) transporting. nonmetal mining. job printing. publishing.
Arizona LLCs have a default tax status as pass-through entities, which means the LLC's income is reported on the members' individual tax return. LLC members are taxed at a 15.3% rate, while LLCs that choose C-corp status are taxed at 4.9%.
How does Arizona's tax code compare? Arizona has a flat 2.50 percent individual income tax rate. Arizona has a 4.9 percent corporate income tax rate. Arizona also has a 5.6 percent state sales tax rate and an average combined state and local sales tax rate of 8.38 percent.
