Transaction Privilege Tax
Although frequently referred to as a sales tax, the Arizona deal benefit tax (TPT) is in fact a tax on a vendor for the advantage of doing service in the state. Various business activities are subject to deal benefit tax and need to be accredited.
If a business is offering a product or taking part in a service topic to TPT, a license from the Arizona Department of Revenue (ADOR) would likely be required in addition to a deal benefit tax or business/occupational license from the city or cities in which the service is based and/or operates.
ADOR gathers the tax for the counties and cities; nevertheless, tax rates vary depending upon the kind of business activity, the city and the county.
Please note that services with several places or service lines can choose to accredit and report for each area individually or have a consolidated license (and report aggregate sales). The expense for each license per location is $12.
Apply for a TPT License
Glossary of Terms
TPT and Use Tax:
Individuals undergo utilize tax when a merchant does not gather tax for concrete individual residential or commercial property used, saved or taken in.
Those people and services subject to utilize tax consist of the following:
- An out-of-state retailer or energy service making sales of tangible personal residential or commercial property to Arizona buyers.
- Arizona citizens who buy items using a resale certificate, and the goods are used, kept or consumed in Arizona contrary to the purpose mentioned on the certificate.
- Arizona homeowners who purchase goods in which another state's sale tax or other excise tax was enforced and the rate of that tax is less than Arizona's usage tax rate.
See our Reporting Guide for practical access to TPT-related guidance and resources.
See the TPT Estimated Payment page for details and how to make payments.
Although frequently referred to as a sales tax, the Arizona deal benefit tax (TPT) is in fact a tax on a vendor for the advantage of doing service in the state. Various business activities are subject to deal benefit tax and need to be accredited.
If a business is offering a product or taking part in a service topic to TPT, a license from the Arizona Department of Revenue (ADOR) would likely be required in addition to a deal benefit tax or business/occupational license from the city or cities in which the service is based and/or operates.
ADOR gathers the tax for the counties and cities; nevertheless, tax rates vary depending upon the kind of business activity, the city and the county.
Please note that services with several places or service lines can choose to accredit and report for each area individually or have a consolidated license (and report aggregate sales). The expense for each license per location is $12.
Apply for a TPT License
Glossary of Terms
TPT and Use Tax:
Individuals undergo utilize tax when a merchant does not gather tax for concrete individual residential or commercial property used, saved or taken in.
Those people and services subject to utilize tax consist of the following:
- An out-of-state retailer or energy service making sales of tangible personal residential or commercial property to Arizona buyers.
- Arizona citizens who buy items using a resale certificate, and the goods are used, kept or consumed in Arizona contrary to the purpose mentioned on the certificate.
- Arizona homeowners who purchase goods in which another state's sale tax or other excise tax was enforced and the rate of that tax is less than Arizona's usage tax rate.
See our Reporting Guide for practical access to TPT-related guidance and resources.
See the TPT Estimated Payment page for details and how to make payments.