Sales Tax
Transaction Privilege Tax
Sources: Arizona Department of Commerce, and the Town of Fountain Hills
Commercial Rental Tax
In addition to the transaction privilege tax imposed on commercial renting or leasing of real property, Maricopa County and the Town of Fountain Hills both impose a commercial rental tax as follows:
Personal Income Tax
Arizona Personal Income Tax Tables
Source: www.azdor.gov/LinkClick.aspx?fileticket=Cfh-wifaHH8%3d&tabid=257&mid=878
If a taxpayer chooses not to itemize deductions, a standard deduction may be taken. The 2008 standard deduction for head of household and married individuals who file a joint Arizona income tax return is $9,042. The standard deduction for all other filers is $4,521. These amounts are adjusted annually for inflation.
Construction Tax
- Vacant land, not subdivided
- Subdivided into custom lots
- Construction begins on the subdivision, subcontractor hired for lot preparation (no home construction)
- Developer pays subcontractor for work performed each month
- Subcontractor pays to Arizona Department of Revenue all State, County and Fountain Hills sales tax when he receives payment from the developer (computed on the 65% rule)
- Subdivision is now complete, all site preparation is complete, no homes yet constructed
Example:
- 10 lot subdivision with total payments to the site preparation subcontractor from the developer of $500,000
- $500,000 x .65 = $325,000
- Taxable $325,000 x .026 = $8,450
- Fountain Hills Sales Tax $500,000/10 = $50,000 site preparation cost per lot
- Lots sell for $100,000 each (sales tax has already been paid on $50,000)
- Town is entitled to sales tax on the $50,000 profit for each lot
- For each lot in subdivision $50,000 x .65 = $32,500 x .026 = $845 due to Fountain Hills (collected at escrow from the seller of the lot)
Bed Tax
Transient Occupancy Tax (Bed Tax)
Source: http://home.nau.edu/images/userimages/mrb9/5271/BedTaxRatesJune2010Revised%20.pdf
Contact Information
Economic Development Office:
Lori M. Gary, CEcD
Economic Development Administrator
16705 E. Avenue of the Fountains
Fountain Hills, AZ 85268
Tel: (480) 816-5109
Fax: (480) 837-3145
Email: lgary@fh.az.gov