The City of Mesa imposes a 1.75% transaction privilege tax on the gross receipts from various types of business activities.
Privilege tax is often passed on to the business' customers as "sales tax". However, this is a tax on the privilege of doing business and is not a true sales tax.
Transactions between related companies or persons are taxable by the City of Mesa. See Mesa City Code Section 5-10-100 for the definition of a "Person [PDF]. Section 5-10-210 "Determination of gross income: transactions between affiliated companies or persons" [PDF], and Section 5-10-220 "Determination of gross income: artificially contrived transactions" [PDF].
Information Sheet [PDF]
The links listed above provide general information only about the transaction privilege tax. For complete information, refer to the City of Mesa Privilege and Excise Tax Code [PDF]. In case of inconsistency or omission, the language of the tax code will prevail.