You want to know why you are seeing two separate tax calculations for an Arizona city on your invoice.
- Arizona imposes a two-tier tax rate for any single item of tangible personal property.
- Each city can set a dollar-amount threshold, where the standard rate applies to the dollar amount below the threshold and a different rate applies to the dollar amount above the threshold.
- An example example is Phoenix, where the first $10,968.00 in sales for a single item is taxed at 2.3%, while the remaining amount for the item is taxed at 2%.
Please review the TPT tax rate tables on the Arizona state website for information on tax rates and what local jurisdictions have adopted the two-tier tax rates. Cities with this two-level tax structure have separate rates listed for "single item portion over" the threshold amount.