Transaction Privilege Tax

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The City of Mesa imposes a 2.0% 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".  Section 5-10-210 "Determination of gross income: transactions between affiliated companies or persons", and Section 5-10-220 "Determination of gross income: artificially contrived transactions".

City Regulations

Tax Collected or Factored

Brochures for Taxable Activities
Transaction Privilege Tax [PDF]
Penalty Abatement for Audit
Penalty Abatement for Returns
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]
Hotels & Motels [PDF]
Job Printing [PDF]
Owner-Builders and Speculative Builders [PDF]
Publishing & Periodical Distribution [PDF]
Renting or Leasing Real Property [PDF]
Residential Rental – For additional information, please see the ADOR website.
Renting Tangible Personal Property [PDF]
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] MTC Sec 5-10-422
Manufactured Buildings [PDF] MTC Sec 5-10-427
Mining [PDF] MTC Sec 5-10-432
Transporting for Hire [PDF] MTC Sec 5-10-475
Timbering & Extraction [PDF] MTC Sec 5-10-430
Utility Services [PDF] MTC Sec 5-10-480

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. In case of inconsistency or omission, the language of the tax code will prevail.

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