Transaction Privilege Tax
All Arizona cities and towns have a Transaction Privilege Tax (“TPT”) which is commonly referred to as sales tax. It is the tax on the privilege of doing business in Arizona whereby the business is liable for the tax but may pass the tax on to and collect the tax from its customer. All taxes collected must be remitted to the Arizona Department of Revenue who, in turn, remits the tax collections to each city and town.
Individuals and businesses are subject to use tax when a retailer does not collect tax for tangible personal property used, stored or consumed within the City of Kingman limits. Those individuals or businesses that are subject to use tax include the following:
- An out-of-state retailer or utility business making sales of tangible personal property to Arizona purchasers.
- An Arizona resident who purchases goods from an out-of-state vendor who did not collect the use tax.
- Arizona residents who purchase goods using a resale certificate, and the goods are used, stored or consumed in Arizona contrary to the purpose stated on the certificate.
- Arizona residents who purchase goods in which another state’s sales tax or other excise tax was imposed and the rate of that tax is less than Arizona’s use tax rate.
Since every Arizona city and town sets their own rate, the total tax rate varies throughout the state. The tax rate for the State of Arizona is 5.6%. The City of Kingman’s tax rate for most business classifications is 2.50%. Therefore, the total tax rate for most business classifications within the City of Kingman is 8.1%. Click here to view a list of the City of Kingman’s taxable business classifications and TPT rates.