The Transaction Privilege Tax (or more commonly called a sales tax) in Sierra Vista is 1.95% on regular sales, and the property tax rate is $0.1136 per $100 of assessed value, making Sierra Vista’s combined tax rate one of the lowest in the state.
Transaction Privilege Tax Code
Special City Business License Rental Tax Exemption
A new state law changed the reporting requirements for some property owners. The City did not feel it was appropriate for those individuals using a property management company that never before needed a business license to now obtain one just because of this tax rule change. Therefore, as long as a property owner is using a property management company, they can operate under that management company’s City business license. However, if a person decides to manage their properties themselves, and is required to collect and remit real property rental tax, then they must obtain a City business license.
Remitting City Privilege Taxes
The City of Sierra Vista is a program city so the state collects the privilege taxes on the City’s behalf. In order for a business to remit the appropriate privilege taxes, it must first be registered with the Arizona Department of Revenue. The application can either be completed online at www.aztaxes.gov or downloaded here.
Transaction privilege taxes are usually remitted monthly to the Department of Revenue.
Tax Classifications and Tax Rates
The current tax rate classifications and rates and tax code updates can be found Arizona’s Department of Revenue home page.
Real Property Rental Tax
With the tax simplification legislation of 2014, the requirements for collecting and remitting real property taxes has changed for property owners using a property management company. Now the individual property owner must be registered with the state of Arizona and must remit the taxes under their own name. The state has issued guidelines that allow a property management company on behalf of the property owner. The instructions and forms can be found here.
The Arizona Department of Revenue periodically gives classes to assist taxpayers in such topics as learning the tax code, how to register to do business within the state, and how to fill out the tax forms, including revenue definitions and exemptions. To find out what classes are being offered, and where, click here.
The City of Sierra Vista follows the Model City Tax Code that was enacted in 1987 by the Arizona Legislature. The code was created to provide uniformity among all of the cities within the State.
Important Note: Since the City of Sierra Vista is a program city, and the Arizona Department of Revenue is the entity that audits taxpayers, the City is unable to give binding tax opinions or advice on any parts of the tax code. If a taxpayer, or their counsel, wants a formal ruling on a tax issue, they must make a written request to the Department of Revenue directly.