Arizona TPT License form: Click Here Office locations: Click here
Transaction Privilege Tax (TPT)/Licensing
(Commonly referred to as a Sales, Resale, Wholesale, Vendor or Tax License)
If you are selling a product or engaging in a service subject to transaction privilege tax, you will most likely need to obtain the state transaction privilege tax (TPT) license from the Arizona Department of Revenue (commonly referred to as a sales tax, resale, wholesale, vendor or tax license) and a transaction privilege tax or business/occupational license from the city(ies) in which you are based and/or operate.
If you have questions about whether or not your business activity is subject to transaction privilege tax/licensing, check with both the Arizona Department of Revenue and the licensing office(s) of the city(ies) in which you will be based and/or operate.
Below you will find helpful information about the transaction privilege ("sales") tax and how to obtain the state and city licenses.
OVERVIEW
The Arizona transaction privilege tax is commonly referred to as a sales tax; however, the tax is on the privilege of doing business in Arizona and is not a true sales tax. Although the transaction privilege tax is usually passed on to the consumer, it is actually a tax on the vendor.
Arizona transaction privilege taxes are imposed on persons engaged in certain business classifications, including retail sales. What this means is that various business activities are subject to state, county and/or city transaction privilege tax (TPT).
Types of business activities subject to the transaction privilege tax include, but are not limited to: retail sales, restaurants/bars, hotel/motel (transient lodging), commercial leasing, advertising, amusements, personal property rentals, real property rentals, construction contracting, owner/builders, manufactured building, severance (mining, timbering), transportation, printing, publishing, utilities, communications, air/railroad, private cars/pipelines and use tax.
The Department of Revenue collects the tax for the counties and most cities, however, some of the cities license and collect their tax independently. Tax rates vary depending on the type of business activity, the city and the county.
Please note: There are some differences between the state and local authorities in the taxability of transactions. For instance, the state does not impose a transaction privilege tax on 1) renting, leasing, or licensing for use residential real property or 2) the sale of advertising. However, many cities do tax these activities.
For questions regarding taxability and licensing, contact the office responsible for collecting the tax (i.e., the Arizona Department of Revenue and/or the local city/town licensing office.)
(Commonly referred to as a Sales, Resale, Wholesale, Vendor or Tax License)
If you are selling a product or engaging in a service subject to transaction privilege tax, you will most likely need to obtain the state transaction privilege tax (TPT) license from the Arizona Department of Revenue (commonly referred to as a sales tax, resale, wholesale, vendor or tax license) and a transaction privilege tax or business/occupational license from the city(ies) in which you are based and/or operate.
If you have questions about whether or not your business activity is subject to transaction privilege tax/licensing, check with both the Arizona Department of Revenue and the licensing office(s) of the city(ies) in which you will be based and/or operate.
Below you will find helpful information about the transaction privilege ("sales") tax and how to obtain the state and city licenses.
OVERVIEW
The Arizona transaction privilege tax is commonly referred to as a sales tax; however, the tax is on the privilege of doing business in Arizona and is not a true sales tax. Although the transaction privilege tax is usually passed on to the consumer, it is actually a tax on the vendor.
Arizona transaction privilege taxes are imposed on persons engaged in certain business classifications, including retail sales. What this means is that various business activities are subject to state, county and/or city transaction privilege tax (TPT).
Types of business activities subject to the transaction privilege tax include, but are not limited to: retail sales, restaurants/bars, hotel/motel (transient lodging), commercial leasing, advertising, amusements, personal property rentals, real property rentals, construction contracting, owner/builders, manufactured building, severance (mining, timbering), transportation, printing, publishing, utilities, communications, air/railroad, private cars/pipelines and use tax.
The Department of Revenue collects the tax for the counties and most cities, however, some of the cities license and collect their tax independently. Tax rates vary depending on the type of business activity, the city and the county.
Please note: There are some differences between the state and local authorities in the taxability of transactions. For instance, the state does not impose a transaction privilege tax on 1) renting, leasing, or licensing for use residential real property or 2) the sale of advertising. However, many cities do tax these activities.
For questions regarding taxability and licensing, contact the office responsible for collecting the tax (i.e., the Arizona Department of Revenue and/or the local city/town licensing office.)