TAX RATES & 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

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.

Link to Model City Tax Code

Town of Marana Tax Code

Other Links

https://azdor.gov/business/transaction-privilege-tax

  
    Classification
    Tax Code Section 
    Business Code
    Tax Rates through 
December 31, 2022
    Tax Rates on/after 
January 1, 2023
  

    Amusements
    410 
    012
    2.0%
    2.5%
      

    Contracting - Prime
    415 
    015
    4.0%
    4.0%
      

    Contracting - Speculative Builders
    417 
    016
    4.0%
    4.0%
      

    Contracting - Owner-builder
    416 
    016
    4.0%
    4.0%
      

    Job Printing
    425 
    010
    2.0%
    2.5%
      

    Manufactured Buildings
    427 
    027
    2.5%
    2.0%
      

    Timbering and other extraction
    430 
    020
    2.0%
    2.5%
      

    Severance - Metal Mining
    432 
    019
    0.1%
    0.1%
      

    Publication
    435 
    009
    2.0%
    2.5%
      

    Hotels
    444 
    044
    2.0%
    2.5%
      

    Hotel/Motel (Additional Tax)(B)
    447 
    144
    6.0%
    6.0%
      

    Commercial Rental, Leasing and Licensing for Use
    445 
    213
    2.0%
    2.5%
      

    Rental Occupancy
    440 
    040
    2.0%
    2.5%
      

    Rental, Leasing, and Licensing for Use of TPP
    450 
    214
    2.0%
    2.5%
      

    Restaurants and Bars
    455 
    011
    2.0%
    2.5%
      

    *Retail Sales
    460 
    017
    2.0%
    2.5%
      

    Communications
    470 
    005
    4.0%
    4.0%
      

    Transporting
    475 
    006
    2.0%
    2.5%
      

    Utilities
    480 
    004
    4.0%
    4.0%
      

    *Use Tax Purchases
    610 
    029
    2.0%
    2.5%
  

*Please visit the Model City Tax Code (link above) for details on single item purchase above $5,000. Reference Option V.