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AZ.gov Arizona's Official Web Site
State of Arizona
Department of Revenue
 

Transaction Privilege Tax Frequently Asked Questions

Select a FAQ category   then click on a question to view the answer.

How do I obtain an Arizona TPT license?

There are three ways to obtain a TPT license: 

  • Go to www.AZTaxes.gov and register online. This option enables businesses to register, file and pay transaction privilege taxes online.
  • Download and complete the Joint Tax Application (JT1)  and follow the instructions.
  • Go to one of our offices to deliver the completed paper application.  
  • Phoenix Office
    1600 W Monroe
    Phoenix AZ 85007
  • Mesa Office
    1840 S. Mesa Dr. Bldg. #1352
    Mesa, AZ 85210
  • Tucson Office
    400 W Congress
    Tucson AZ 85701

 Note: When applying in person only the owner or principal officer of the business who has signed the application can receive the license. Proof of identity will be required. Otherwise, the license will be mailed to the applicant unless a Power of Attorney is provided. (Power of Attorney Forms)

How do I cancel my business license?

Return the license to the Department of Revenue with the word “CANCEL” written across the front of it and mail to:

Customer Care and Outreach
Arizona Department of Revenue
PO Box 29032
Phoenix , AZ 85038-9032

Or, you can visit one of our office locations where a customer service representative can assist in cancelling the license.

I only do business for special events in Arizona, am I required to have a license?

Yes. The Transaction Privilege Tax Application (short form) must be obtained. This short form is specifically for event licensing or transient vendors and is intended for use by vendors at special events such as Fairs, Shows, Swap Meets, etc.

If you do not have Arizona employees, you may obtain the Short Form. If you do have or use Arizona employees while doing events in Arizona, you must file a Joint Tax Application.

The state license fee is $12 no matter how many special events you attend. However, a separate city license fee is required for each city unless you are currently licensed for the city in which an event will be held.

When is a license fee assessed?

License fees are assessed by Customer Care and Outreach when a new license is issued, an additional location added (may also be a city fee), when there is a change in business location (there may also be a city fee), when a program city is added, and when the customer requests a reprint.

License fees are also assessed when a Taxpayer adds a program city to a TPT-2 return that is not already in the Taxpayer’s profile.   

We do not assess a fee for a reprint required because of our error (keypunch error on a new license, for instance), a mailing address change, change in tax record location, or a change in corporate officers.  There is no fee to cancel or reinstate a license. 

My license was cancelled, can I have it reinstated?

Only if the license was cancelled in error by the Department of Revenue, it will be reinstated at no charge. However, if the license holder cancelled the license, the holder must reapply and pay appropriate fees.

If only one spouse owns the business, do both spouses have to sign the license application?

No. Spouses are only required to sign if they are both listed as owners. Please note that Arizona is a community property state which may impact the liability or ownership interest of both spouses regardless of the form of business ownership.

How do I change my business location or mailing address?

Complete the Transaction Privilege and Use Tax/ Withholding License Update form and mail it to:

Attention: Customer Care and Outreach
Department of Revenue
PO Box 29032
Phoenix , AZ , 85038-9032


 

Am I required to obtain a new license if the name of my business has changed?

If ownership or location has not changed, you must notify the Department of Revenue in writing by completing the Transaction Privilege and Use Tax/ Withholding License Update form and paying any applicable fees.

Ownership of the business has changed; can we keep the same license number?

The transaction privilege tax license is not transferable. Anytime the ownership status changes, a new license number is required. Other situations where a new license may be required are: a sole proprietor becomes a corporation or partnership, business location changes, business locations added.

Am I required to have a license for each location?

Each separate physical location must have a license for display. If the ownership is the same, the locations can be consolidated under one license number to allow the taxpayer to file a single return. If the taxpayer does not wish to consolidate, they can complete separate license applications and have different license numbers issued for each location. Filing of tax return and payment of tax is required for each license issued.

My business never opened. Do I need to cancel the license?

Yes. Return the license to the Department of Revenue with the word “CANCEL” written across the front of it and mail to:

                    Customer Care and Outreach
                    Department of Revenue
                    PO Box 29032 
                    Phoenix , AZ , 85038-9032

Or, you can visit one of our office locations where a customer service representative can assist in cancelling the license

I lost my license, can I obtain a copy?

Yes. The fee for a copy is $12 plus any applicable city fee.

My business is run out of my home. Am I still required to obtain a license?

Yes, you must apply and obtain a license. You may use your home address as the business address on the application.

Note: It is the responsibility of the business owner to research the legality of operating a business in a home and to comply with county and city zoning requirements.

What signatures are required on a license application?

Only individuals legally responsible for the business may sign the application. Agents or representatives may not sign the application. Here are examples of signature requirements:

  • Sole Proprietor; Owner(s) of the business.
  • Partnership; A minimum of one partner.
  • Corporation, Organization, LLC, Sub Chapter S or Trust; A minimum of one financial corporate officers.

Am I required to register my Corporation with the Arizona Corporation Commission?

Yes. Corporations must also file with the Arizona Corporation Commission. The Corporation Commission may be contacted at www.azcc.gov or by phone at 602-542-4251.

Is a business required to have an EIN (Employer Identification Number)?

Yes. Corporations, partnerships, and all employers must have a Federal Employee Identification Number (also referred to as FEIN). This number can only be obtained through the Internal Revenue Service (IRS). Their web site is www.irs.gov or you can contact the IRS by phone at 1-800-829-1040.

As a sole proprietorship can I use my SSN (Social Security Number) as my EIN?

Yes, only if you are a sole proprietor with no employees.

What are non-program cities?

The Department of Revenue does not collect taxes for all cities within Arizona. The cities that collect their own taxes are commonly referred to as "Non-Program Cities". See more information under TPT Non-Program Cities 

How long will it take to receive my Arizona TPT license?

Complete, correct applications process in the following timeframes:

  • AZTaxes.gov - 24-48 hours
  • Paper JT-1 mailed - mailing time plus 24-48 hours of processing time
  • In person JT-1- Immediately processed same day

If you wish, you may visit one of our office locations and complete a JT-1 application in person, pay the fees and receive your license.  Our offices close at 5:00pm and it will take some time to process your application.  Therefore, we encourage you to arrive at least 45 minutes prior to closing.
 

When is a sale exempt from tax when goods are used for resale purposes?

If a vendor or seller has a "good faith" belief that the purchaser will be reselling the goods or using the goods for an exempt purpose, the sale may be exempt from tax.

The purchaser should present the vendor with a completed Exemption Resale Certificate (Form 5000 or 5000A). A vendor that accepts a certificate in good faith will be relieved of the burden of proof and the purchaser may be required to establish the accuracy of the claimed exemption as provided in Arizona Revised Statute 42-5022.

As a single member LLC, am I required to have an EIN to obtain a TPT license?

Yes. Single member LLC’s must have a Federal Employee Identification Number (also referred to as FEIN) to obtain an Arizona TPT license. According to the Internal Revenue Service (IRS), “if state law requires a single member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN.” This number can only be obtained through the IRS. Their web site is www.irs.gov or you can contact the IRS by phone at 1-800-829-1040.