Page 18 - Vladimir Mihaylov_DTA_Relocation_Guide

ARIZONA
Relocation Guide

MISC. INFORMATION

Arizona TAXES trucks and truck trailers depreciate down to 75% after the
first year and down 13% after 10 years. The rate imposed
Business Tax by the state is four cents on each $1 valuation. Counties
Businesses are required to report and pay Phoenix privilege may levy up to one cent on each dollar of valuation, but the
sales tax on their taxable business activity on a monthly, total tax imposed cannot exceed five cents on each dollar
quarterly, or annual basis. Reporting frequency is based of valuation.
upon taxable gross income. You may request a Child Care
change in filing frequency after you have established Businesses that provide on-site child care or vouchers for
a minimum of six months of reporting history. All new child care to employees are eligible for an abatement of up
accounts must file monthly for a minimum of six months prior to 50 percent on the business tax. Eligible employees
to requesting a change in filing frequency
cannot earn more than 150 percent of the
Automobile Registration Fees federal poverty level.
The state also charges a vehicle license tax Real Property
(VLT) at every registration and renewal. This tax (Land, buildings and improvements not normally removable)
is assessed for each $100 of your vehicle’s value. Note
that the value of your vehicle is calculated as 60% of the The taxable value for land is full cash value. The value for
original manufacturer’s retail price, and that total will be improvements is replacement costs less depreciation at 1.5
lowered by 16.25% at every registration renewal. percent per year up to 50 years.
Sales and Use
For each $100 of the vehicle’s value, you will be assessed:
New vehicles: $2.80 The Arizona sales tax rate is currently 5.6%.
Used vehicles: $2.89 In Arizona, each county, city and special district can add
Alternative Fuel Vehicle: $4 sales taxes on top of the state rate. Taxes in Arizona are
origin-based, meaning the sales tax rate is based,
Government Services Tax or determined from, the location where a sale
This tax is in lieu of personal property tax. originates. The Arizona state use tax rate is not the same
The valuation of the vehicle is determined at 35% of the as the state, county, city and special district sales tax rates.
manufacturer’s suggested retail price, without accessories. If you reside in AZ, use tax is due to the state on any and
Vehicle value is depreciated to 85% after the first year and all transactions where sales tax has not been paid, even
graduated down to five percent after nine years. Buses, out-of-state internet sales.

18