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.  

Use Tax

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.

TPT Rates

Since every Arizona city and town sets their own rate, the total tax rate varies throughout the state. The combined rate for the State of Arizona and Mohave County is 5.85%.  The City of Kingman’s TPT rate for most business classifications is 2.50%.  Therefore, the total tax rate for most business classifications within the City of Kingman is 8.35%.  Click here to view a list of the City of Kingman’s taxable business classifications and TPT rates.

Resources

City of Kingman Tax Code

Model City Tax Code

Arizona Department of Revenue

Apply for a TPT License

Arizona Revised Statutes Title 42 - Taxation

 

FAQ

Expand/Contract Questions and Answers

  • Are internet sales taxable?

  • Is food taxable in the City of Kingman?

  • Do I have to pay TPT if I do not charge my customers?

  • Does the City of Kingman tax the rental of real property?

  • Is a residential property that is rented for less than 30 days taxed as a residential rental property?

AZTaxes TPT_Hero