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TRANSACTION PRIVILEGE TAX (TPT)/LICENSING It is important to know that Arizona is a transaction privilege tax state as opposed to a sales tax or gross receipts state. What this means is that various business activities are subject to state, county and/or city transaction privilege tax (TPT) and must be licensed with the Arizona Department of Revenue and possibly with one or more cities.
TRANSACTION PRIVILEGE TAX (TPT)/LICENSING
The transaction privilege tax is imposed on the seller for doing business in the state, although the tax is usually passed on to the customer. 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 Arizona Department of Revenue publishes informational brochures regarding activities subject to state transaction privilege tax. To view/print their tax brochures or to apply for the state transaction privilege tax license - commonly referred to as a sales, resale, wholesale, vendor or tax license, visit their website or contact them.
Arizona Department of Revenue
View/Print Tax Brochures
www.aztaxes.gov
Arizona Department of Revenue License
Arizona Joint Tax Application (JT-1) for
- State Transaction Privilege Tax (TPT) License (sometimes referred to as a sales tax, resale, wholesale, vendor or tax license)
- State Withholding/Unemployment Tax License (if hiring employees)
- State Use Tax License
- State Luxury Tax License
- Privilege Tax Licenses for many Arizona Cities and Towns
*Note: Due to bonding requirements construction contractors are not permitted to file online.
Arizona Department of Revenue
www.azdor.gov
602.542.4576
800.634.6494 (from area codes 520 and 928) 1600 W. Monroe
Phoenix, AZ 85007 3191 N. Washington Street
Chandler, AZ 85225 400 W. Congress Street, South Building
Tucson, AZ 85701
City Tax/Licensing
Check with each city/town in which you are based and/or operate to verify city tax/license requirements. There are some differences between the state and local authorities in the taxability of transactions. For instance, many cities impose a transaction privilege tax on persons engaged in business under the advertising classification; however, the state does not. 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.)
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 COLLECTION OF TAXES/TAX RATE TABLES
The Arizona Department of Revenue collects the tax on behalf of the county and most cities; however, most of the larger cities license and collect their tax independently of the state, and are referred to as non-program cities. Sales in the non-program cities must be reported directly to the applicable city. The state and county taxes must still be reported and remitted to the state. A list of the non-program cities along with their contact information is available on the Arizona Department of Revenue website.
The Arizona Department of Revenue Transaction Privilege (Sales) Tax Rate Tables contain rates for Transaction Privilege and other taxes imposed by the State of Arizona, the counties, and most Arizona cities. To view the tables, visit their website.
Arizona Department of Revenue
List of Non-Program Cities
Transaction Privilege (Sales) Tax Rate Tables
www.azdor.gov/TpT/tptrates/indextpt.asp (Back to top)
WORKSHOPS
The Arizona Department of Revenue offers a free Small Business Workshop. This workshop offers a basic overview of completing the Joint Tax Application, reporting and factoring tax, state and city taxes, resale certificates, business classifications, employment taxes and Use tax. For information on registration and workshop schedules, visit the Arizona Department of Revenue website.
Arizona Department of Revenue
Seminars & Educational Opportunities
www.aztaxes.gov/default.aspx
Individual cities may also offer educational tax and license workshops. (07) (Back to top)
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