Transaction Privilege Tax
The City of Mesa imposes a 1.75% 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.
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”.
Privilege Tax
Brochure
Taxable Activities:
Other Taxable Activities:
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.
The transaction privilege tax is commonly referred to as a sales tax. However
the tax is on the privilege of doing business in Mesa and is not a true sales
tax.
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