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State of Arizona
Department of Revenue
 

Transaction Privilege Tax (TPT)

Download AZTaxes.gov Account Set-up Instructions (PDF)

The Arizona Department of Revenue (ADOR) began implementing changes to Transaction Privilege Tax (TPT) licensing and reporting, as required by law, effective July 1, 2016.

  • ADOR strongly encourages all businesses to register and file their transaction privilege taxes using www.AZTaxes.gov.
  • All businesses must file by location number on the city detail section of your return. The location number can be found on your TPT License. Taxpayers registered in AZTaxes may access their location list online.
  • State law requires businesses with more than one physical location in Arizona to file tax returns electronically via www.AZTaxes.gov (see A.R.S. § 42-5014.H.
  • ADOR no longer accepts the TPT-1 form for reporting periods beginning on or after June 1, 2016. Two new forms are available to accommodate location-based reporting for filing periods beginning on or after June 1, 2016. The TPT-EZ is a simplified tax form for businesses with one location or jurisdiction. The TPT-2 replaces the outdated TPT-1 for use by multi-location or multi-jurisdiction businesses. 
  • ADOR staff is available weekdays between 8 a.m. and 5 p.m. (M.S.T.) if you have questions or need assistance. Contact us toll-free at 1(844) 698-9176 or by email at AskTPT@azdor.gov.

See our Reporting Guide for convenient access to TPT-related guidance and resources, including Contracting, Retail, Residential Rental, and Motor Vehicle Sales.


Notice - Changes to Arizona TPT effective July 1, 2016, do not apply to the following non-program cities:

Apache Junction               Glendale              Prescott
Avondale                            Mesa                    Scottsdale
Chandler                             Nogales               Tempe
Douglas                              Peoria                  Tucson
Flagstaff                             Phoenix

Please DO NOT include the local taxes due to these cities on your tax return. Taxpayers in these cities should continue to report as they have been, using their respective cities’ forms and procedures until centralized reporting takes effect for the non-program cities, which is expected to be later this year.

About Arizona TPT

Although commonly referred to as a sales tax, the Arizona Transaction Privilege Tax (TPT) is actually a tax on the vendor for the privilege of doing business in the state.

Various business activities are subject to transaction privilege tax and must be licensed.

If a business is selling a product or engaging in a service subject to TPT, a license from the Arizona Department of Revenue (ADOR) would likely be needed as well as a transaction privilege tax or business/occupational license from the city or cities in which the business are based and/or operate.

Businesses with multiple locations or business lines can opt to license and report for each location separately or have a consolidated license (and report aggregate sales).

The cost for each license per location is $12.

TPT and the Use Tax:
The transaction privilege tax is imposed upon income or proceeds derived from engaging in a taxable business within the State of Arizona. The use tax is imposed upon the purchaser of tangible personal property which is used, stored, or consumed in Arizona when the sale was not subject to the transaction privilege tax. Out-of-state retailers or utility businesses that sell to Arizona customers are required to collect the Arizona use tax and remit it to the department.

www.AzTaxes.gov