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. Lake Havasu City Sales Tax
Retail sales tax rate is 7.85%, as follows:
State of Arizona 5.60%
Lake Havasu City 2.00%
Mohave County .25%
Mohave County Taxes
Sales Tax
The County has a ¼ cent Sales Tax reserved for new construction. It was implemented in 2000 and "sun-sets" December 31, 2019. The tax generates around $5 million annually. The County has the authority for a ½ cent sales tax. Sales taxes, unlike property taxes, are paid by locals as well as tourists and part time residents, so they spread the tax burden across the total economy. Remembering, 2.2 million tourists visit Arizona´s West Coast annually. Sales tax revenue in Mohave County does not go into the General Fund for basic government operations, or to cover social costs. So, the potential loss in property tax revenue will not be balanced by the State´s expanding Sales Tax to service, unless the County alters current policy.
Mohave County Property Tax
The County´s Primary Property Tax Rate is $1.75 per $100 of Assessed Valuation [assessed value is approximately 75% of fair market value]; it has averaged this rate for 13 years. The Board of Supervisors sets this rate annually. State statutes set the formula to legally determine a "not to exceed" levy rate. This rate places Mohave County in 9th place in property tax rates, ranking from highest to lowest in the state.
Primary Property Tax is the largest contributor to General Fund Revenue. As a percent of Personal Income in 2003, Mohave County´s Primary Property tax accounted for only ½ of 1%.
It is important to note, that when the County Treasurer sends that annual tax bill, it includes all taxing jurisdictions, primary and secondary, such as schools, fire districts, local city taxes, flood control, and libraries. The Treasurer collects and then distributes those funds to the appropriate entity. On a residence in Lake Havasu City for example, 17-18% of those taxes collected go to the County General Fund.
Arizona State Taxes
Sales Taxes
State Sales Tax: 5.6% (food and prescription drugs exempt).
Gasoline Tax: 19 cents/gallon
Diesel Fuel Tax: 19 cents/gallon
Gasohol Tax: 19 cents/gallon
Cigarette Tax: $1.81/pack of 20
Water Use Tax: 65 cents per 1,000 gallons of water used.
Personal Income Taxes
Tax Rate Range: Low - 2.87%; High - 5.04%
Income Brackets: * Lowest - $10,000; Highest - $150,000
Number of Brackets: 5
Personal Exemptions: Single - $2,100; Married - $4,200 with no
dependents, $6,500 with one dependent; Dependents - $2,300; 65 years or older - $2,100
Standard Deduction Single: - $4,050; Married filing jointly - $8,100
Medical/Dental Deduction: Allows deductions for all qualified medical and dental expenses.
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security and Railroad Retirement benefits are exempt. Up to $2,500 total of military, civil service, and Arizona state/local government pensions are also exempt. All out-of-state government pensions are fully taxed.
Retired Military Pay: Up to $2,500 of retired pay and/or survivor benefits excluded.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.
VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Property Taxes
There is no state property tax. Tax jurisdictions set tax rates, which may vary considerable from one area to another. Property tax is administered by county assessors. Single homeowners 65 and older who earn less than $3,700 and married couples who earn less than $5,500 are eligible for a tax credit of up to $502.
Persons at least 65 years old who have resided in their primary residence for at least two years and have total income not more than four times the Social Security supplemental security income (SSI) benefit rate may apply to the assessor by September 1 to have the valuation of the primary residents and up to 10 acres of adjoining undeveloped land frozen at the full cash value when the application is filed.
Arizona also taxes personal property, which is defined as all types of property except real estate. Taxable personal property includes property used for commercial, industrial and agricultural purposes. Personal property is considered to be movable and not permanently attached to real estate.
In lieu of a personal property tax on automobiles, the state imposes an annual motor vehicle license tax. The fee to register an automobile in Arizona is $8.00 (or $8.25 in metro Phoenix and Tucson, including a 25-cent air quality compliance sticker fee), plus an air quality research fee of $1.50 and a vehicle license tax (VLT). The VLT is based on an assessed value of 60% of the manufacturer's base retail price reduced by 16.25% for each year since the vehicle was first registered in Arizona. As of Dec 1, 2000, the rate is calculated at $2.80 for new vehicles or $2.89 for used ones for each $100 of the assessed value. For example, for a new vehicle that costs $25,000, the first year's assessed value would be $15,000 and the VLT would be $420. The second year the assessed value would be $12,562.00 and the VLT would be $363.06.
Inheritance and Estate Taxes
There is no inheritance or gift tax and the limited Arizona estate tax is related to federal estate tax collection.
For further information, visit the Arizona Department of Revenue site. For questions about moving to Arizona, click here.
* For joint returns, the taxes are twice the tax imposed on half the income.
Arizona Department of Transportation
Motor Vehicle Division Information
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