Local Sales Tax
Tax Collecting Agent
The Arizona Department of Revenue is the tax collecting agent for the Town. Sales tax payments are remitted to the AZ Department of Revenue, who then returns the portion of tax due back to the Town on a quarterly basis.
The Town of Carefree levies a 3% local sales tax on all retail sales, advertising and contracting conducted within the Town. The sale of food for home consumption (groceries) carries a local sales tax of 2%. Local sales tax on construction contracting and speculative building is 4%.
In order to legally conduct business within the town limits, all businesses requiring a transaction privilege tax (TPT) license must complete and submit the AZ TPT License Form to the AZ Department of Revenue, ensuring the Town of Carefree is selected as a/the program city.
The Arizona Department of Revenue has information to assist contractors. The webpages offer general information on the contracting classification, licensing, the use of exemption certificates, examples, and frequently asked questions. Additionally, sections provide definitions, insight into bond requirements, speculative builders, and key differences between Maintenance, Repair, Replacement and Alteration (MRRA) and Modification. Contractors are encouraged to go to Contracting Guidelines pages for important information.
For more information, please contact the Town Clerk or visit www.aztaxes.gov.
The Town of Carefree levies no local property tax.
While the Town does not levy a local property tax, it has remained fiscally sound through careful and conservative budgeting. The main sources of annual revenue are: a share of AZ state sales tax, the 3% local sales tax on purchases, a 3% use tax, permit fees, state urban revenue sharing (state income tax), gasoline and auto lieu taxes, annual franchise fees from Southwest Gas, Cox Cable TV license fees and interest on Town investments.
Town residents are still required to pay property taxes to several jurisdictions (see chart below.) Most taxing jurisdictions have two rates, a primary and a secondary rate. Primary rates pay for operational expenses. Secondary rates pay for bonded indebtedness and capital improvement projects.
| 2018 Tax Rates
|| Primary Rate
|State of Arizona
|Town of Carefree
|Maricopa County Health Care
|Maricopa County Flood Control District
|Central Arizona Water Conservation
|Cave Creek School District
The property tax rate is levied on each $100 of assessed value. The assessed value is a percentage of market value, as established by the Maricopa County Assessor.
Information on assessed property values may be obtained from the Maricopa County Tax Assessor or by calling 602-506-3011, outside Arizona 800-540-5570.