Displaying the Tax License
The transaction privilege tax license shall be on display to the public in
the licensee’s booth in a conspicuous place. Posting the license at all
times avoids delays while conducting business when tax department rep-
resentatives make compliance checks to verify that vendors are licensed.
Tax Rate on Retail Sales at Events
The City of Mesa tax rate is 1.75% of the taxable income. The total com-
bined rate is 9.05% for retail sales. (6.6% state + 0.7% county + 1.75%
Calculating the Tax
Although transaction privilege tax is usually passed on to the customer, it
is actually a tax on the vendor for doing business in Arizona. The tax can
be added to the sales price or included in the sales price.
Factoring Transaction Privilege Tax
When a business “factors” transaction privilege tax, it means the tax is
included in the total price rather than shown as a separate charge. If you
choose to factor the tax, the tax must be calculated using a factoring for-
mula. There are many different factoring formulas depending on the city
tax rates, state and county tax rates or differences in allowable city tax
Tax Factor for the State, Maricopa County & City of Mesa tax rate of
Retail (Art Sales)
Example: Sold taxable art item for $100 and tax is included.
Take the amount collected times the tax factor for retail to calculate the
tax on the item.
$100 X .08298945 = $8.30 Total City, State, & County Tax.
Mesa City Tax =$100.00 gross – 8.30 tax = 91.70 net x .0175 = $ 1.61
State & County Tax = $91.70 net x .073 =
Total Tax $ 8.30
Merchants Providing Store Space for Outside
Artists or Vendors
Space or booth rentals to vendors or artists are taxable as licensing for use
of real property. See Mesa Tax Code, Section 5-10-445. This tax is im-
posed on any individual renting property or