SALT Report 1373 – Effective February 1, 2012 the following local Arizona transaction privilege taxes will change. Paradise Valley will impose an additional tax on rentals, leases and licenses for nonresidential property or property units (commercial leases). The additional tax rate is 0.85%.
The description for “rental of real property” will be changed to “commercial lease”, and the current rate of 1.65% will not change. A new transaction privilege tax classification for residential rentals was created and has a rate of 1.65%.
Lastly, effective March 1, 2012, Tombstone will lower the tax rate for transient lodgings to 4%.
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