Residential Rental Transaction Privilege Tax Application -... 2025

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Nonprofits Generally. While many states afford broad tax exemptions to nonprofit organizations, Arizona does not. The State of Arizona does not provide an overall exemption from transaction privilege tax (TPT) for nonprofit organizations.
Transaction Privilege Tax License A transaction privilege tax (TPT) license (commonly referred to as a sales tax, resale, wholesale, vendor or tax license) is required for businesses selling a product or engaging in a service subject to transaction privilege tax in the state.
If a business is selling a product or engaging in a service subject to TPT, that business will likely need a license from the Arizona Department of Revenue (ADOR) and a TPT, or business/occupational license, from the city or cities in which the business has a base or operation.
Business License - Arizona does not issue nor require a state business license, however, most city/town offices issue business licenses.
Although commonly referred to as a sales tax, the Arizona transaction privilege tax is actually a tax on the business owner for the privilege of conducting certain business activities in the state. If a business is engaging in business activity a TPT license issued by the Arizona Department of Revenue (ADOR) is needed.
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If your LLC engages in a business type thats subject to the TPT, you must get the state transaction privilege tax license from the Arizona Department of Revenue. This license is sometimes called a sales tax, resale, wholesale, vendor or tax license.
TPT License Number A eight-digit number issued to the business when approved for a transaction privilege tax license. It is located on the physical TPT license certificate in the upper, right section or on the AZTaxes account under Business Details.
Generally YES, in most cases you will need a business license. Arizona imposes a transaction privilege tax or TPT on the privilege of doing business in the State of Arizona.

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