Sabrix

I am leaving for a much anticipated vacation in warm and sunny Phoenix in a week, so this really caught my eye. The Phoenix, Arizona City Council has just approved an ordinance that will impose the privilege (sales) tax on the sale of food for home consumption (When on vacation I like to save a little money by not eating out every meal). Effective April 1, 2010 purchases and sales of food will be taxed at the current retail and use tax rate of 2%.  Fortunately for me the tax doesn't go into effect until after this trip, but I'm sure I'll be paying it on a future vacation since Phoenix is one of my favorite escapes from the rain here in Oregon.

The food tax will be reported under a new and separate business code on tax returns.

Monthly filers will receive a tax return form in April 2010 to report April 2010 retail food sales activity, and the return is due May 20, 2010.

Quarterly filers will receive a tax return form in June 2010 to report April, May, and June 2010 retail food sales activity, and the return is due July 20, 2010.

Annual filers will receive a tax return form in December 2010 to report January through December 2010 retail food sales activity, and the return is due January 20, 2011. For annual filers, only retail food sales made prior to April 1, 2010, can be excluded from reported gross income.

Release, City of Phoenix Finance Department, Tax Division, February 2010