Transaction Privilege (Sales) Tax

All Arizona cities and towns have a transaction privilege tax (TPT) which is commonly referred to as a sales tax.  It is, however the tax on the privilege of doing business in Arizona and is not a true sales tax.  The seller is liable for the tax but may pass the burden of the tax on to the purchaser.  It includes but is not limited to taxation of retail sales, construction, residential and commercial rentals, utilities, communications, and amusements.  

In addition to the statewide sales tax, each municipality and county sets their own tax rate, therefore the total tax rate varies throughout the state.  The transaction privilege tax rate for City of Litchfield Park is 4.8% for construction contracting and 2.8% for most other business classifications including retail and restaurant.  The combined rate for the State of Arizona and Maricopa County is 6.3%, so the total tax rate within the City of of Litchfield Park is 11.1% for contracting and 9.1% for retail and restaurants.

The City of Litchfield Park tax rates and business classifications are detailed in the tax chart (PDF).  

Reporting and Licensing

The Arizona Department of Revenue (ADOR) is the single point of administration and collection of state, county and municipal transaction privilege tax.  All tax owed to the City of Litchfield Park is reported to ADOR on a separate line under the city region code LP.  Tax return forms, tax updates and current tax rate tables may be obtained from the Arizona Department of Revenue website.  You can apply for a TPT license, file, and pay online on their website also.

Other Resources

AZ Taxes Graphic