FAQs

What is Transaction Privilege Tax (Sales Tax)?

The transaction privilege tax is commonly referred to as sales tax.  It differs from a true sales tax in that it is a tax on the privilege of doing business in Arizona.  The seller is liable for the tax but may pass the burden of tax on the purchaser.  For additional information, please refer to the Arizona Revised Statutes, the Arizona Department of Revenue, the Model City Tax Code or the Town of Oro Valley Tax Code. 

How do I obtain a Transaction Privilege (Sales) Tax License?

A Transaction Privilege (Sales) Tax Application can be completed online at www.azdor.gov.

How do I remit the tax due?

The Arizona Department of Revenue collects Oro Valley tax along with the State and County Tax.  The form (TPT-1) for remitting the tax is available online at www.azdor.gov. Forms must be remitted to the Arizona Department of Revenue.

What is the current Transaction Privilege (Sales) Tax rate?

The current transaction privilege tax rate for Oro Valley is 2%.  Construction activities are taxed at 4%, while accommodations (hotel/motel) include an additional 6% tax.  The total tax rate for retail sales is 9.1% (State/County 7.1%), construction sales are taxed at a total rate 11.1% (State/County 7.1%) while accommodations are taxed at a total rate of 15.05% (State/County 7.05%).  For a complete listing of Oro Valley Taxes click here: Oro Valley Tax Information

Do I need to charge and remit privilege (sales) tax?

It is the responsibility of the business/artist to remit privilege (sales) tax.  Whether you collect it from your customers or not, the tax liability for all taxable activities in the Town of Oro Valley must be remitted.

How do I calculate my taxes due?

Taxes are calculated by stating the gross receipts for the reporting period on the tax return, entering the itemized deductions, then multiplying the resulting net taxable amount by the appropriate tax rate for the activity.

Are internet sales taxable?

Items sold by Oro Valley businesses via the internet to Arizona residents are taxable at the total rate of 8.1%

Are sales to the Town of Oro Valley taxable? 

All sales, except re-sales, made to the Town are taxed in the same manner as other taxable sales.

What region code and business class should I use when reporting Oro Valley tax on the TPT-1 form?

The region code for Oro Valley is “OR”.  The business class for privilege taxes is “000”, construction taxes is “004”, accommodation (hotel/motel) tax is “003” and the utility tax business class is 005”.

Is the rental of commercial real property taxable?

The rental of commercial real property is not taxable in the Town of Oro Valley; however the County assesses a .5% tax on the rental of commercial property.

Does the Town assess a primary property tax?

The Town does not levy a local property tax on its residents and businesses.