Arizona: Sales Tax Handbook
How to get an Arizona Transaction Privilege Tax License
In Arizona, most businesses are required to have a sales tax permit. This means that, if you are considering opening a new business or are beginning to make sales in Arizona for the first time, you will need to determine your business' permit requirements. The good news is that you can get an Arizona Transaction Privilege Tax License and be ready to do business 4 to 6 weeks after you submit your application. This guide will help you learn how!
- Does My Business Need A Sales Tax Permit In Arizona?
- How To Apply For an Arizona Transaction Privilege Tax License
- What Info Do I Need To Apply?
- Application Fee, Turnaround Time, and Renewal Info
- Apply For an Arizona Transaction Privilege Tax License Online
- Apply For an Arizona Transaction Privilege Tax License Offline
Who needs an Arizona Transaction Privilege Tax License?
Arizona has a "Transaction Privilege Tax", or TPT, which is similar but not identical to a sales tax. The tax applies to vendors for the "privilege of doing business" in Arizona, but many businesses pass the tax on to consumers like a traditional sales tax. Arizona state law specifies that the TPT only applies to certain types of businesses, which include "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, and private cars/pipelines."
Businesses with a taxable presence within Arizona are considered to have sales tax nexus within the state. For more details on what constitutes a taxable presence, see sales tax nexus in Arizona.
How to get an Arizona Transaction Privilege Tax License:
While the Arizona sales tax permitting process takes 4-6 weeks if you apply via mail or the AZTaxes.gov website, you can expedite the process r if you complete the JT-1 application and submit payment in person at your local AZ Department of Revenue office.
Sales tax compliance in Arizona is complicated by the fact that Arizona allows cities to charge separate sales taxes, and that means that if you do business in one of the 12+ cities that do you must apply for a separate city sales tax permit. Before January 2016 you must file a saparate form, Form J-10, to apply for a city tax permit. Starting January 2016, however, Arizona is streamlining the process to allow the registration of both state and city permits at the same time, through the same form.
The Arizona cities which have their own sales tax permitting requirements are: Apache Junction, Avondale, Chandler, Douglas, Flagstaff, Glendale, Mesa, Nogales, Peoria, Phoenix, Prescott, Scottsdale, Sedona, Tempe, and Tucson.
You need the following information to apply for an Arizona Transaction Privilege Tax License:
Business Entity Type,
Federal EIN or SSN,
Legal Business Name,
Business Phone Number,
Physical Location of Business,
Bonding Requirements (construction contractors),
Unemployment Tax Information (in certain situations),
North American Industrial Classification System (NAICS) code,
Identification of Owner / Managing Individuals
Arizona Transaction Privilege Tax License Application Fee, Turnaround Time, and Renewal Info
Applying for an Arizona Transaction Privilege Tax License is free, and you will receive your permit 4 to 6 weeks after filing your application.
Application Fee: $12
Turnaround Time: 4 to 6 weeks
Permit Renewals: Every year
Note about permit renewals:All Arizona businesses must renew their TPT License yearly, by January 1st. There is no charge unless you need to update business information on your renewal. Businesses in some cities may require a separate local permit renewal application.
Apply For Your Arizona Transaction Privilege Tax License Now:
Get Your Arizona Transaction Privilege Tax License Online
You can easily acquire your Arizona Transaction Privilege Tax License online using the AZTaxes website. If you have quetions about the online permit application process, you can contact the Department of Revenue via the sales tax permit hotline (602) 542-4576 or by checking the permit info website .
Offline Arizona Transaction Privilege Tax License Application Form
While generally slower than applying online, you can apply for a Arizona Transaction Privilege Tax License for your business offline using Form JT-1, the "Joint Tax Application". Form JT-1 can be downloaded from the Department of Revenue here .
Mail Completed Form JT-1 To:License & Registration Section
Department of Revenue
PO Box 29032
Phoenix, AZ 85038-9032
What's Next? Now that you know how to apply for your Arizona Transaction Privilege Tax License, learn how to collect and remit the Arizona sales tax.
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