Transaction Privilege Tax

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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.

City Code

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].

City Regulations

Information Sheet [PDF]

How to Figure Out Tax

Brochures for Taxable Activities
Transaction Privilege Tax [PDF]
Penalty Abatement for Audit [PDF]
Penalty Abatement for Returns [PDF]
Advertising [PDF]
Amusements, Exhibitions, etc. [PDF]

Construction Contracting: Due to recent changes in contracting laws, please contact the Arizona Department of Revenue (ADOR) with any questions.  This link will take you to ADOR Contracting FAQ's.

Construction Contracting Activities 

Convention Center Vendor [PDF]
Event Promoters [PDF]
Hotels & Motels [PDF]
Job Printing [PDF]
Owner-Builders and Speculative Builders [PDF]
Publishing & Periodical Distribution [PDF]
Renting or Leasing Real Property [PDF]
Renting Tangible Personal Property [PDF]
Residential Rental – For additional information, please see the ADOR Residential Rental Flyer
Restaurants & Bars [PDF]
Retail Sales [PDF]
Salons [PDF]
Special Event Craft Vendor [PDF]
(MACFest tax brochure [PDF])
Tanning & Massage [PDF]
Telecommunication Service [PDF] 
Use Tax [PDF]
Jet Fuel [PDF]
Manufactured Buildings [PDF]
Mining [PDF]
Transporting for Hire [PDF]
Timbering & Extraction [PDF]
Utility Services [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.

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