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. 

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. 

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 

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. 

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. 

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

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. 

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.

Retail Sales
Selling tangible personal property. 

Telecommunication Services
The tax rate is 2.75% 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. 

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% 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%. 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; prosthetics, seed, feed, and fertilizer purchased by a bonafide farmer or rancher; and ground water measuring devices are exempt.