TaxesPage-GroveBuilding

Taxes

Mesa, Arizona offers a competitive operating environment compared to other Southwest markets. For more than a decade, Arizona has implemented reductions in taxes and created incentive programs favorable to businesses.

ARIZONA TAX QUICK FACTS

  • Arizona has the 6th lowest unemployment insurance tax rate in the nation and the lowest amount in the U.S. for total wage base subject to unemployment tax ($7,000).
  • The assessment ratio for real and personal property taxes on commercial and industrial properties is 18.0%.
  • Arizona has one of the most aggressive additional depreciation schedules, resulting in reduced operating costs and a quicker path to profitability.
  • Arizona also exempts equipment used in manufacturing from sales tax.
  • Virtually all services are exempt from sales tax.
  • 100% of net operating loss may be carried forward for five years.

Plus, the state DOES NOT levy the following taxes:

  • Corporate franchise tax.
  • Business inventory tax.
  • Income tax on dividends from out-of-state subsidiaries.
  • Worldwide unitary tax.

BUSINESS TAXES

Business Taxes
Sales Tax* Corporate Income Tax Unemployment
(% of Payroll)
Taxable
Wage Base 
Worker's Comp
(per $100 payroll) 
Inventory
 8.05% 4.9% 0.8% $7,000 $1.49 No
 *2016 sales tax breakdown: Mesa - 1.75%; County - 0.7%: State - 5.6%


PERSONAL INCOME TAX

Arizona personal income tax rates ranges from 2.88%-5%, compared to other Southwest markets, which range from 4.6% to 9.3%.

PROPERTY TAX

Rates are per $100 assessed valuation. The assessed valuation for commercial property development is 18% of the actual value determined by the Maricopa County Assessor and 10% for residential. The rate is then multiplied by the assessed value to determine the tax.

   Mesa Public School District  $8.41
   Higley Unified School District  
 $8.75
   Queen Creek Unified School District  $9.71
   Gilbert Public School District  $9.25

 

For example:

Commercial property within the Mesa Public School District with a full cash value (FVC) of $100,000 would pay $1,555 annually in property tax.  $100,000 FCV x .185 (assessment ratio) = $18,500 x $8.41/$100 - $1,555.85.