Tax Rates

Paid by Taxable Businesses

The City of Goodyear, and most other cities in Arizona, imposes a Transaction Privilege (Sales) Tax on specific business activities just like the State of Arizona. The City tax is in addition to the tax imposed by the State and County. The City of Goodyear tax rate is two percent (2.5%) (effective 9/1/09) and is imposed upon the business. For a large ticket item that exceeds $5,000, the 1.2% privilege tax rate shall apply to the entire single item. A taxable business will need to be registered with the City of Goodyear as well as licensed by the State of Arizona.

·                Contracting Taxes

o    Construction contractors, speculative builders, and owner builders, except for remediation contracting, are subject to the contracting tax. The sales tax rate on construction contracting is 3.5% (GY006) of gross income.

·                Real Estate Taxes

o    Businesses that lease, license for use, or rent real property located within the City of Goodyear. Income from the rental of both Commercial and Residential properties is taxable.

o    The sales tax rate on real property rentals is 2.5% of gross income. In addition to a local sales tax, the City of Goodyear imposes a 2.5% Transient Lodging Tax (leasing to persons staying less than six consecutive months).

·                Restaurant/Hotel Taxes

o    Revenue from restaurants and bars are subject to a City Sales Tax rate of 4% (GY005). The sales tax rate on real property rentals is 2.5% of gross income.

o    In addition to a local sales tax, the City of Goodyear imposes a 2.5% Transient Lodging Tax (leasing to persons staying less than six consecutive months).

·                Retail Sales

o    Most retail sales within the City of Goodyear are subject to a 9.8% (effective 6/1/10) sales tax rate. This includes a 7.3% (effective 6/1/10) for state and county taxing and a 2.5% tax for the City of Goodyear.

o    If you are purchasing one retail item valued at $5,000.00 or more, the sales tax rate for the City of Goodyear drops to 1.2% for the entire single purchase.

o    When dining out in Goodyear, the sales tax rate increases to 11.3% (effective 6/1/10).

·                Sales Tax Chart

o    See a complete chart of sales tax rates in Goodyear showing the various types of commodities that are legally taxed.

Procedures for Tax Payment

o    The City of Goodyear is in the State collection system. Please apply for a City sales tax license through the Arizona Department of Revenue; then report and pay City sales tax on the state sales tax return under the city code GY005 (4%) for restaurants. Hotels and motels report and pay City sales tax on the state sales tax return under the city code GY000 (2.5%) and GY003 (2.5%) for a combined total of 4.5%.

o    License applications are available through the City of Goodyear, Finance Department, or the Arizona Department of Revenue, License Department, 1600 W. Monroe, Phoenix, AZ 85007 602-542-2076.

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Last Updated: 5/20/2010