Frequently Asked Questions

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Glossary:

AZDOR = Arizona Department of Revenue
GB         = Town of Gilbert
MAR      = Maricopa County
MCTC    = Model City Tax Code
TPT        = Transaction Privilege Tax

It is the responsibility of the business to remit transaction privilege tax. Whether you collect it from your customers or not, the tax liability for all taxable business conducted in Gilbert must be remitted.
When tax has not been separately billed to your customer, you may factor the tax out of your gross income before calculating tax due to the Town, as well as the State and County. When a business “factors” transaction privilege tax, it means the tax is included in the total price rather than shown as a separate charge. If you choose to factor the tax, the tax must be calculated using a factoring formula. The factoring rate below is based on a combined State, County and Gilbert tax rate of 7.8%.
FACTORING RATE: Total Sales Tax Due = 0.07235622 X Gross Income
Here is a worksheet to help you if you choose not to charge tax separately. There are many different factoring formulas depending on city taxes, county taxes or differences in allowable city tax deductions. Please see Arizona Transaction Privilege Tax Procedure TPP 00-1 for more detailed information about factoring.