Phoenix is raising its Transaction Privilege and Use tax to 2.8% starting July 1.
The TPT tax is not a sales tax, per se. It taxes businesses for the right to do activity within the city, though vendors may choose to pass the tax on to the customer.
In March, the City Council approved raising the tax by half a percentage point. This will affect many common purchases including retail shopping, restaurants and hotels.
Some construction contracts are currently exempt from the tax increase.
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