New Arizona Pinal County Rate Survives Judicial Challenge

April 2, 2018

As reported in an earlier entry, the Arizona Department of Revenue and Pinal County have been in disagreement over whether the state has obligation to collect and enforce an additional .5% Transportation Excise Tax that becomes effective on April 1, 2018.

While the legal challenge continues, on March 23 the Arizona Tax Court officially declined to issue an order immediately barring enforcement of the tax. This means that the tax will go into effect beginning with the reporting period starting April 1, 2018 and will be enforced and collected by the Arizona DOR.

By way of background, this tax will be applied to the first $10,000 of gross income from the sale of a single item of tangible personal property. The portion of sale price above $10,000 in gross income is not taxed.

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