Why are there two calculations for an Arizona city?

Overview

You want to know why you are seeing two tax calculations for an Arizona city on your invoice.

Environment

Avalara AvaTax

Resolution

• Arizona adopted a two-tier tax rate for any single item of tangible personal property.
  • Each city has a threshold of sales that this would apply to.
  • Example would be Marana where the first 5000.00 in sales for a single item is taxed at 2.5% while the remaining amount for the item is taxed at 2%

Next Steps

Please review the Arizona state website for information on tax rates and what local jurisdictions have adopted the two-tier tax rates.