Although frequently referred to as a sales tax, the Arizona deal opportunity tax (TPT) is actually a tax on a supplier for the advantage of doing organization in the state. Various business activities go through transaction opportunity tax and need to be licensed.

If a company 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 privilege tax or business/occupational license from the city or cities in which business is based and/or runs.

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

Please note that organizations with multiple places or organization lines can choose to accredit and report for each location independently or have a consolidated license (and report aggregate sales). The expense for each license per place is $12.

Request a TPT License

Glossary of Terms

TPT and Use Tax:

Individuals undergo use tax when a seller does not gather tax for tangible individual residential or commercial property utilized, stored or taken in.

Those individuals and services based on utilize tax include the following:

- An out-of-state retailer or energy company making sales of tangible personal residential or commercial property to Arizona buyers.
- Arizona homeowners who acquire products using a resale certificate, and the goods are utilized, kept or consumed in Arizona contrary to the purpose mentioned on the certificate.
- Arizona locals who buy items 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 convenient access to TPT-related assistance and resources.

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

What's New with TPT?

New Age Rule for TPT License

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

Additionally, persons under the age of nineteen and who operate a service sometimes, are not required to have any kind of license or allow for company for city and county purposes. Please connect straight to the appropriate city or county with organization license or permit concerns.

If a person under the age of nineteen is currently operating a service with a TPT license (with an adult consisted of on the license) and the organization does not generate more than $10,000 in gross sales annually, then the license may be cancelled with the reliable durations starting October 1, 2024. Please make sure that returns are submitted based upon the filing frequency appointed at the time of registration. If a filing is missed out on or a last return is not submitted prior to of the TPT license, then penalties and interest may accrue. See guidelines on how to cancel a TPT license.

Residential Rental Tax Changes

Starting January 1, 2025, domestic rental residential or commercial property owners should no longer gather and remit any city transaction advantage tax (TPT) on the income stemmed from long-term accommodations stays of thirty days or more to ADOR. (Laws 2023, Chapter 204 and A.R.S. § 42-6004 (H)).

This uses to licensees that are signed up and have actually filed using organization code 045 showing that license is participated in the organization classification of property rental. Residential leasing is the leasing of genuine residential or commercial property for a duration of 30 or more consecutive days for residential (i.e. noncommercial) functions only.

Currently, there is no state or county tax troubled property leasings, and the upcoming modification to the tax law will remove the city TPT. While there will no longer be a city TPT obligation beginning January 1, 2025, you should still register the residential or commercial property with the county assessor to comply with landlord tenant laws and other compliance requirements from government entities. Owners can still declare previous periods online even if the license has been canceled or the location has actually been closed.

For tax durations before January 1, 2025:

- You must still comply with filing and payment requirements, and
- These periods stay subject to audit as permitted by statute.

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

What Should I Do?

Please continue to collect, file, and pay domestic rental TPT for periods through December 31, 2024, submitted in January 2025. For periods beginning January 1, 2025 and thereafter, it is no longer required to collect, file, and pay domestic rental TPT.

No additional action or steps require to be taken to cancel the license. Understand that cancelation of the license will not excuse you from any liabilities associated with periods before January 1, 2025. If liabilities are overdue, enforcement actions might be taken against you. Go to to AZTaxes.gov to deal with any outstanding liabilities or missing out on returns for the license.

Tax Rate Change

For tax rate modifications, please see Model City Tax Code's Rate and Code Updates and TPT Newsletters.

Arizona Business One Stop is an online website that offers a single online area with personalized tools to plan, start, grow, move and close companies in Arizona. It is a safe digital experience that does not need in-person interaction.

Arizona-based organizations must check out Business One Stop (B1S) if forming their business for the 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 only offered at AZTaxes.gov at this time.

Businesses needing upgraded details on transaction benefit tax can access ADOR's regular monthly newsletter, TPT Tax Rate Table and Model City Tax Code modifications here by clicking the suitable month and year. For older information, please visit our archives.

Businesses can also subscribe to ADOR's TPT newsletter and get updates through e-mail or text notifies. They can receive notices concerning TPT due dates, city tax rate changes, license renewals and brand-new functions on AZTaxes.gov.