Transaction Privilege Tax (TPT)

The transaction privilege tax (TPT) is commonly referred to as 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.   Taxes are remitted directly to the Arizona Department of Revenue at www.aztaxes.gov.

The transaction privilege tax rate for Prescott Valley is 2.83% effective January 1, 2016. For most business classifications, the combined rate for the State of Arizona and Yavapai County is 6.35%, therefore, the total tax rate within the legal Town limits for businesses is 9.18%.  TPT licenses are obtained directly from the Department of Revenue at www.aztaxes.gov.  The tax code for the Town of Prescott Valley is PL. For Yavapai County, the code is YAV.

If you are in the business of selling tangible personal property ("items") to someone else who plans to use the items and not rent or resell them, you owe retail sales tax.  You owe the tax whether the tax was added to the price of the items sold.

For complete details, refer to the Arizona Revised Statutes at ARS, the Arizona Department of Revenue at AZDOR or the Municipal City Tax Code at MCTC.

Municipal City Tax Code

View the 2015 Municipal Tax Code (PDF)

Business Classes/Codes

View the latest Business Classes and Codes (PDF)