General
Do I need a Transaction Privilege and Use Tax license to open a business in Phoenix?
The City of Phoenix requires a license from all businesses that have a privilege (sales) or use tax liability. We do not require a license for businesses without a tax liability, except for business activity subject to a Business / Regulatory license. View a list of business classifications subject to tax.
What is a business license?
The City's standard Transaction Privilege and Use Tax license is not a business license. The City requires a Business / Regulatory license for certain businesses to operate in the city. These activities include liquor sales, pinball machines, second hand stores, and massage establishments, among others.
Where are you located?
Our offices are located at 251 West Washington on the 3rd floor. There is a parking garage on the block to the west of our building on the southwest corner of 3rd Avenue and Washington Street.
What are the fees for a Transaction Privilege and Use Tax license?
View our fee schedule.
If I am selling products over the Internet, do I need a Transaction Privilege and Use Tax license?
Yes, you need a license if your business is located in Phoenix and you are selling to customers in Arizona. Click here for detailed information regarding the new TPT law for remote sellers and marketplace facilitators effective October 1, 2019.
Do I need a Transaction Privilege and Use Tax license to be at swap meets, craft fairs, and etc.?
If you participate in swap meets, craft fairs, and etc., you need a license for your Phoenix sales. If you operate at more than one location, you will need a license for each location, including one for your regular business location. In general, you will not need to obtain a license if you are engaged in casual private sales activities, such as the sale of a personal automobile or garage sale, on no more than three separate occasions during any calendar year.
Account Changes
Do I have to notify you if I change my business location?
Yes; however, you need to contact the Arizona Department of Revenue with any change in your business location within thirty (30) days by submitting a Business Account Update form. The Business Account Update form is a tool utilized by taxpayers who wish to update account information that pertains to 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. Once licensed, if a business is closed or moved to a new location, the unique location number for that business will no longer be valid. The Arizona Department of Revenue will assign a new location number to a business if that business is moved to a new location. If a new expansion or location is opened for a business, the new location will be issued a new location number.
Is a new license required for a change of mailing address?
No; however, contact the Arizona Department of Revenue in order to submit a Business Account Update form to change your mailing address within thirty (30) days.
Do I need a new Transaction Privilege and Use Tax license if I change the ownership of my business?
Yes, a new license is required for any change of ownership. Examples of changes of ownership are the sale of a business, a change from sole proprietorship to corporation (or vice versa), a change in the general partners of a partnership, or a change requiring a new federal ID number.
How do I cancel my Transaction Privilege and Use Tax license?
To cancel your Transaction Privilege and Use Tax License, please contact the Arizona Department of Revenue in order to submit a Business Account Update form to change your mailing address within (30) days.
