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Tax Audit - Taxable Activities
 

The following business activities are subject to Transaction Privilege (Sales) Tax in the City of Chandler:

Advertising by billboards, direct mail, flyers, radio, television, or any other means.  A deduction is available for "national” advertising. View more information.

Amusements, exhibitions, sports/athletic type instruction, or other similar activities. This includes movies, concerts, sporting events, video games, golf fees, health spas, fitness centers, aerobic or dance classes and like activities. View more information.

Construction Contracting.  Contact the Arizona Department of Revenue with any questions.

Job Printing. Includes engraving of printing plates, embossing, micrographic and photo reproduction. Deductions available include printing for resale, out-of-state sales and sales to nonprofit hospitals. For more information, click View more information.

Mining, Timbering and Other Extraction. Sand and gravel operations are not included; these operations are retail activities.

Publishing and Periodical Distribution. Includes advertising and subscription income. Taxed on the basis of circulation within the city; published articles sent through the U.S. Mail to Arizona locations are taxable as though delivered within Chandler for Chandler-based publishers. View more information.

Rental, Leasing and Licensing for Use of Real Property. Includes all real property rentals, commercial and residential. Each different property location requires a separate business license. View more information.

Rental or Leasing to Transients (Hotel/motel – bed tax). This tax is in addition to the 1.5 percent tax on real property rentals, and the rate is 2.9 percent, for a total of 4.4%.  It applies to the first thirty days a person occupies a lodging space. View more information.

Rentals, Leasing and Licensing for Use of Tangible Personal Property. Includes coin operated laundromats and carwashes. Deductions include rent for re-rent, rentals of prosthetics (artificial limbs, crutches, etc.), rentals of certain manufacturing and mining equipment, and rentals to charitable, nonprofit hospitals. View more information.

Restaurants and Bars. The tax rate is 1.8%. Preparing and serving food or beverages for on or off premise consumption, including cover charges. Caterers are taxed according to their business location, not the catering site. Delivery, set-up and clean-up fees separately charged and maintained in the books are exempt from catering income. Sales to nonprofit hospitals and to public school cafeterias are exempt. View more information.

Retail Sales. Selling tangible personal property. View more information.

Telecommunication Services. The tax rate is 2.75 percent and includes charges for, subscriptions to, or access fees for one-way or two-way voice, sound, or video transmissions, facsimile transmissions, relay or repeater service, computer interface over a communications channel, computer time-sharing, and security or burglar alarm system monitoring. Telecommunications for resale and interstate transmissions are exempt. View more information.

Transporting for Hire. Includes transporting by railroad, aircraft and pipelines.  Transportation services like taxi cabs, buses, towing, etc. are not taxed. 

Utility Services. The tax rate is 2.75 percent and includes providing water, electricity, or natural gas to rate payers within the city. Sales for resale and sales to nonprofit hospitals are excluded.

Use Tax. A tax on purchases or rentals for storage or use within the city, on which an equivalent excise tax has not been paid. The rate is 1.5 percent. The tax is not on inventory held for resale, but if goods were purchased for resale and later removed from inventory for use by that business, use tax would apply. Manufacturing equipment; p