Requirements for a Transaction Privilege and Use Tax License
View the list of business activities subject to transaction privilege and use tax to determine if your business requires licensing for Phoenix. If you are unsure about the taxability of your business, please contact our licensing section, as fees are non-refundable.
Is My Business Located Within the Phoenix City Limits?
Most business activities are taxed based on the location of the business. Perform an address search with the State's online system to determine your taxable jurisdiction and applicable tax rate by clicking below.
Alternatively, you may contact the licensing section.
-License fees are due within 30 days of starting business (i.e., liability start date). The fee amount depends on the type of activity your business engages in within Phoenix. A 50% late payment penalty will apply if payment is received more than 30 days from your liability start date. View the comprehensive fee schedule.
Applying for a Transaction Privilege and Use Tax License
If your business engages in taxable activity, a Transaction Phoenix Privilege (Sales)and Use Tax License is required within 30 days of starting a business to avoid penalties. Apply for a TPT license to report your City of Phoenix liability directly with the Arizona Department of Revenue.
Request a Certificate of Compliance
A buyer of a business is liable for taxes that may be owed by the seller unless a Certificate of Compliance for Letter of Good Standing from the Arizona Department of Revenue is obtained. Otherwise, taxes found to be due from a time period prior to the sale of the business are an obligation of the prior business owner(s). Please follow the instructions as provided by the Arizona Department of Revenue.
Business Account Update Form
Every licensee should inform the Arizona Department of Revenue of any changes in their business activities, location, or mailing address within thirty (30) days. The Business Account Update form is a tool utilized by taxpayers who wish to update account information or cancel their reporting for Phoenix tax liability on their State TPT license account. A completed form with an authorized signature is required in order to process your change request. Please follow the instructions utilizing the information listed on the State website in order to complete and make your changes.
Still Have Questions about Licensing?
Frequently Asked Questions (FAQs) address many different licensing questions for businesses that are not licensed, as well as currently licensed businesses, on topics such as cancellations, account updates, changes in ownership, and forms.