Yakima bonds are paid off leading to lower sales tax, but some businesses may still be charging the higher rate

A decade-old sales tax hike has ended, but some businesses may still be charging the higher rate.

The tax hike was used to pay a judgment against La Paz County in favor of Yakima Compost Company, with whom the County had a contractual dispute in the late 2000s. A jury awarded Yakima $9.2 million in damages, which then accrued penalties and interest. The bonds were issued after the passage of legislation by the State of Arizona which allowed a sales tax of 1 percent until the bonds were paid off, which has now been accomplished.

The tax ended on December 31st with some excess funds at the U.S. National Bank Association as bond trustee, which wired them to the County.

The Arizona Department of Revenue said that it is up to local businesses to change the tax rate in their systems. District 2 Supervisor Duce Minor said he knows some have, but others may still be charging the higher rate.

The Parker Regional Chamber confirmed this, saying in an email to members, “The rate change has been confirmed with Arizona Department of Revenue. However, what we are hearing is that some local businesses received the notice of change while others have not. The rate change to remove the collection of the 1 percent Judgement Tax for is effective as of Jan. 1, 2022.”

Find the correct tax rate for your business by entering your address HERE.