Although commonly referred to as a sales tax, the Arizona transaction opportunity tax (TPT) is really a tax on a supplier for the opportunity of doing business in the state. Various service activities undergo deal advantage tax and should be certified.

If a business is selling a product or taking part in a service subject to TPT, a license from the Arizona Department of Revenue (ADOR) would likely be needed along with a deal opportunity tax or business/occupational license from the city or cities in which the company is based and/or runs.

ADOR collects the tax for the counties and cities; nevertheless, tax rates vary depending upon the kind of service activity, the city and the county.

Please note that companies with several places or company lines can opt to certify and report for each place individually or have a combined license (and report aggregate sales). The cost for each license per location is $12.

Look for a TPT License

Glossary of Terms

TPT and Use Tax:

Individuals undergo utilize tax when a seller does not collect tax for tangible personal residential or commercial property utilized, saved or taken in.

Those people and companies based on utilize tax include the following:

- An out-of-state seller or energy company making sales of concrete individual residential or commercial property to Arizona buyers.
- Arizona locals who buy items utilizing a resale certificate, and the products are utilized, saved or consumed in Arizona contrary to the function mentioned on the certificate.
- Arizona residents who purchase goods in which another state's sale tax or other excise tax was imposed and the rate of that tax is less than Arizona's usage tax rate.

See our Reporting Guide for practical access to TPT-related assistance and resources.

See the TPT Estimated Payment page for details and how to pay.

What's New with TPT?

New Age Rule for TPT License

Effective September 14, 2024, individuals under the age of 19 may run a company without a transaction benefit tax (TPT) license if that service does not produce more than $10,000 in gross income in a fiscal year. See Arizona Revised Statutes (A.R.S.) § 42-5045.

Additionally, individuals under the age of nineteen and who run a service periodically, are not needed to have any kind of license or permit for service for city and county purposes. Please connect straight to the pertinent city or county with organization license or allow questions.

If an individual under the age of nineteen is presently running a company with a TPT license (with an adult consisted of on the license) and the company does not create more than $10,000 in gross sales annually, then the license might be cancelled with the reliable durations beginning October 1, 2024. Please ensure that returns are filed based upon the filing frequency designated at the time of registration. If a filing is missed or a final return is not filed prior to cancellation of the TPT license, then charges and interest may accrue. See guidelines on how to cancel a TPT license.

Residential Rental Tax Changes

Starting January 1, 2025, residential rental residential or commercial property owners ought to no longer collect and remit any city deal benefit tax (TPT) on the earnings obtained from long-lasting lodging stays of thirty days or more to ADOR. (Laws 2023, Chapter 204 and A.R.S. § 42-6004 (H)).

This applies to licensees that are signed up and have submitted using organization code 045 suggesting that license is participated in the company classification of property rental. Residential rental is the leasing of genuine residential or commercial property for a period of 30 or more successive days for property (i.e. noncommercial) purposes just.

Currently, there is no state or county tax imposed on domestic leasings, and the upcoming modification to the tax law will remove the city TPT. While there will no longer be a city TPT obligation starting January 1, 2025, you need to still register the residential or commercial property with the county assessor to adhere to property owner tenant laws and other compliance requirements from government entities. Owners can still declare prior periods online even if the license has actually been canceled or the place has actually been closed.

For tax durations before January 1, 2025:

- You should still comply with filing and payment requirements, and
- These durations remain subject to investigate as permitted by statute.

Please note: Hotel, motel, or other transient lodging organizations that reserve stays for fewer than 1 month should still collect and remit TPT under the short-term accommodations or hotel category.

What Should I Do?

Please continue to collect, file, and pay domestic rental TPT for durations through December 31, 2024, filed in January 2025. For durations starting January 1, 2025 and afterwards, it is no longer needed to collect, submit, and pay property rental TPT.

No more action or steps need to be taken to cancel the license. Know that cancelation of the license will not excuse you from any liabilities associated with durations before January 1, 2025. If liabilities are unpaid, enforcement actions may be taken versus you. Visit to AZTaxes.gov to solve any outstanding liabilities or missing out on returns for the license.

Tax Rate Change

For tax rate changes, please go to Model City Tax Code's Rate and Code Updates and TPT Newsletters.

Arizona Business One Stop is an online website that provides a single online location with personalized tools to prepare, begin, grow, move and close companies in Arizona. It is a secure digital experience that does not require in-person interaction.

Arizona-based businesses must go to Business One Stop (B1S) if forming their business for the very first time. Please note: New Business One Stop TPT licenses submissions will direct you to pay at AZTaxes.gov. TPT filings, payments, and renewals are just readily available at AZTaxes.gov at this time.

Businesses needing upgraded information on deal advantage tax can access ADOR's month-to-month newsletter, TPT Tax Rate Table and Model City Tax Code changes here by clicking the proper month and year. For older information, please visit our archives.

Businesses can likewise register for ADOR's TPT newsletter and get updates through email or text signals. They can get notices regarding TPT due dates, city tax rate modifications, license renewals and new functions on AZTaxes.gov.