Transaction Privilege (Sales) Tax:
The City of Chandler imposes a general tax rate of 1.5 percent, Restaurant and Bars 1.8 percent, Utility and Telecommunications 2.75 percent, and Transient Lodging 2.9 percent. Privilege tax is imposed on the seller for the privilege of doing business in Chandler. All privilege tax revenues are not dedicated and all go directed to the General Fund which may be expended for any municipal purpose. In general, they are used to finance the cost of City services, including but not limited to, police, fire and emergency services, libraries, parks, playgrounds and recreational facilities, and streets and transportation.
The City of Chandler's Use tax rate is 1.5 percent. Use tax is imposed on the purchaser for using, consuming or storing tangible personal property within the city limits that was purchased without paying City sales tax. The use tax provides an indirect benefit to Chandler retailers by removing the incentive for customers to shop outside the city in order to avoid paying City tax.
Vehicle Use Tax:
If you purchase a vehicle, the Arizona Department of Transportation will, at the time of registration, review your documentation to verify if sales tax was paid at the time of purchase. If tax was not paid in the state of purchase, or was less than the Arizona State and City tax, the Arizona Department of Transportation will require that the Arizona State portion of use tax, due to the Arizona Department of Revenue, be paid at the time of vehicle registration. The State will then notify you to pay the City Use Tax portion based on where the vehicle is registered. The tax is based on the purchase price of the vehicle, less any trade-in allowance. Vehicles include automobiles, boats, trailers, and in most cases aircraft.
Government Property Lease Excise Tax:
In 1996, the Legislature enacted the Government Property Lease Excise Tax (GPLET) currently prescribed in A.R.S. § 42-6201 through 42-6209. The GPLET is a tax incentive established as a way to stimulate development in commercial districts by temporarily replacing a property tax with an excise tax. There are a few properties in the City of Chandler qualified as GPLETs.
Chandler’s Economic Development Division is a valuable resource for information related to establishing a business in the City. Their team of professionals offers programs and services tailored to support the business community. For more information contact them directly at 480-782-3030.