This page describes the City’s Transaction Privilege Tax Code, more commonly referred to as the sales tax code.

Licensing and Remitting Tax

All persons doing business within the City must have a City business license.

Click here to download City Business License application form (pdf format)

In order for a business to remit the appropriate privilege taxes, it must first be registered with the Arizona Department of Revenue. The application can either be completed online at www.aztaxes.gov or downloaded from www.azdor.gov/Forms/transaction.asp

Transaction privilege taxes are usually remitted monthly to the Department of Revenue. They can be remitted online at www.aztaxes.gov or filed by mail using ADOR’s TPT-1 form. This form is usually mailed to the taxpayer, but can be downloaded from www.azdor.gov/Forms/transaction.asp.

Tax Classifications and Tax Rates

On June 28th, 2006, the City increased it transaction privilege tax rates. The tax rates and business classes as of September 1, 2006 are:

Note: If a construction contract was executed before September 1, 2006, this contract is subject to the old tax rate of 1.5% and should be reported under business class 06.

Real Property Rental Tax

On September 1, 2006, the City raised its real property rental tax rate from 0% to 1%. This tax includes any real property rental, including, but not limited to residential property, commercial property, storage facilities and vacant land. Anyone who owns three or more residential properties and/or one commercial property is required to collect and remit this tax.

If a person manages properties for others, Model City Tax Code Regulation 100.1 classifies them as being in the business of renting real property. Therefore, they must collect and remit taxes on all properties they manage regardless of the number of properties each individual owns.

If a property owner should pay the tax, but uses a property management company, the management company should collect and remit the tax for the owner. Important Note: Even though the management company should collect and remit the taxes, if it does not, the owner is ultimately liable for all taxes.

For an Adobe Acrobat file of the real property rental section of the tax code, please click the following link:

Click here to download the Sierra Vista Tax Code – Rental Section only (pdf format)

For frequently asked questions about the tax, please click on the following link:

Click here to view the Rental Tax FAQ

Tax Classes

The Arizona Department of Revenue periodically gives classes to assist taxpayers in such items as learning the tax code, how to register to do business within the State, how to fill out the tax forms, revenue definitions and exemptions are covered. To find out what classes are being offered, and where, pleased go to http://www.azdor.gov/aspforms/core/registrationdescription.asp.

Additional Information

The City of Sierra Vista follows the Model City Tax Code that was enacted in 1987 by the Arizona Legislature. The code was created to provide uniformity among all of the cities within the State. For more information on the Model City Tax Code, please visit www.modelcitytaxcode.org.

The City of Sierra Vista is also a ‘program city’. This means that the State collects the privilege taxes and remits them to the City. The advantage of this is Sierra Vista does not need to employ additional accounting staff to monitor, collect and audit individuals and organizations doing business within the City limits. The State does these functions at no cost to the City.

Important Note: Since the City of Sierra Vista is a program city, and the Arizona Department of Revenue is the entity that audits taxpayers, the City is unable to give binding tax opinions on any parts of the tax code. If the taxpayer, or their counsel, want a formal ruling on a tax issue, they must make a written request to the Department of Revenue directly.

Click on the following link to see an Adobe Acrobat version of Sierra Vista’s complete tax code:

Click here to view the Sierra Vista Tax Code (pdf format)