TAX RATES AND CODE
Transaction Privilege Tax
The Town of Marana is a program “city”, which operates under the Model City Tax Code. The business is legally responsible to pay the transaction privilege tax. However, the business is permitted to pass the tax through to and collect the tax from its customers. All taxes collected must be remitted to the town by filing with the State of Arizona Department of Revenue using a Transaction Privilege, Use, and Severance Tax Return (TPT-1). In order to file the TPT-1 form, a business must register with the State of Arizona Department of Revenue using a Joint Tax Application Form.
IMPORTANT: The Arizona Department of Revenue will soon be implementing changes to transaction privilege tax reporting, as required by law. Click for more information.
Use tax is imposed on the buyer. The Town of Marana’s tax rates are listed below. Use tax is imposed on the purchaser for using, consuming or storing tangible personal property within the town limits that was purchased without paying town sales tax. The use tax provides an indirect benefit to Marana retailers by removing the incentive for customers to shop outside the city in order to avoid paying town tax.
|Classification||Tax Code Section||Business Code||Tax Rates through
December 31, 2018
|Tax Rates on/after
January 1, 2019
|Contracting - Prime||415||015||4.0%||4.0%|
|Contracting - Speculative Builders||416||016||4.0%||4.0%|
|Contracting - Owner-builder||416||016||4.0%||4.0%|
|Timbering and other extraction||430||020||2.5%||2.0%|
|Severance - Metal Mining||432||019||0.1%||0.1%|
|Hotel/Motel (Additional Tax)(B)||447||144||6.0%||6.0%|
|Commercial Rental, Leasing and Licensing for Use||445||213||2.5%||2.0%|
|Rental, Leasing, and Licensing for Use of TPP||450||214||2.5%||2.0%|
|Restaurants and Bars||455||011||2.5%||2.0%|
|Use Tax Purchases||610||029||2.5%||2.0%|