The State is to transfer 50% of those transaction privilege taxes to the district.

However the company will need to apply separately for each transaction privilege tax exemption.

The state transaction privilege tax is 5.6%; however, county and municipal sales taxes generally add an additional 2%.

The Legislature also authorized the transfer of certain transaction privilege tax revenues to these districts.

For example, Arizona's transaction privilege tax is a gross receipts tax on business.

Therefore, even illegal sales of marijuana are currently subject to transaction privilege tax under the retail classification.

Nothing in the bill took effect unless the voters approved the increase in the state transaction privilege tax rates at the 2000 general election.

Does current law require the State to impose a transaction privilege tax upon the sale of medical marijuana in Arizona?

The work force development account receives its monies from the 0.6% increase in the transaction privilege tax rate approved in Proposition 301.

Proposition 301 increased the state transaction privilege tax rate by 0.6% to fund specific education programs, including the CSF.

Incorporated municipalities also levy transaction privilege taxes which, with the exception of their hotel/motel tax, are generally in the range of 1-to-3%.

As discussed below, however, there is no valid Fifth Amendment defense to a generally applicable requirement to file transaction privilege tax returns.

Instead, the requirement to file transaction privilege tax returns generally applies to taxable business classifications and is not associated with criminal law enforcement efforts.

Under current law, the proceeds of medical marijuana sales are taxable under the retail classification of the transaction privilege tax.

The State of Arizona imposes a 6.6% transaction privilege tax on persons or entities engaged in taxable business classifications.

(1) Voters in the districts may approve a transaction privilege tax to fund these projects, and the districts are authorized to issue bonds.

To learn more about Transaction Privilege Tax, Business/Occupational, and Regulatory licensing, see below.

Did you know that Arizona is a transaction privilege tax (TPT) state as opposed to a true sales tax state?

Do medical marijuana dispensaries have a valid Fifth Amendment defense for the failure to file transaction privilege tax returns and pay the tax that is due?

These returns of state transaction privilege tax monies to the district begin after the district board of directors delivers to DOR a resolution requesting payment.

In response to calls from the Arizona business community for streamlined regulation, the Governor and Legislature approved fundamental changes in the administration of Arizona's transaction privilege tax system.

This requires a calculation of the transaction privilege taxes collected from persons conducting business "at a multipurpose facility site or in the construction of a multipurpose facility."

Meanwhile, Governor Brewer today also signed an Executive Order establishing a Transaction Privilege Tax Simplification Task Force.

The retail classification of the transaction privilege tax, more commonly known as the "sales tax," is established under A.R.S. 42-5061, which in relevant part provides as follows:

CDC provides Transaction Privilege Tax and Use Tax exemptions at the state, county and local levels, on qualifying purchases of CDC Equipment.