For more information about collecting and remitting sales tax in Arizona, check out Arizona Sales Tax Resources.
Arizona is one of the more complicated states when it comes to registering for a sales tax permit. While the state soon plans to simplify their system in 2016, right now sellers may find that they need to register for an Arizona state sales tax permit and permits for multiple cities. This guide will explain what you need to know.
How to Register for a Sales Tax Permit with the State of Arizona
1. Who needs a sales tax permit in Arizona? While not a true sales tax, the Transaction Privilege Tax works roughly the same way. The only difference is it’s a tax on the vendor for the “privilege of doing business in Arizona.” Only certain businesses are taxed. They include, but not limited to:
retail sales, restaurants/bars, hotel/motel (transient lodging), commercial leasing, advertising, amusements, personal property rentals, real property rentals, construction contracting, owner/builders, manufactured building, severance (mining, timbering), transportation, printing, publishing, utilities, communications, air/railroad, private cars/pipelines and use tax.
Note if you sell on Amazon FBA: Two recent letter rulings appear to state that Amazon.com rather than Amazon FBA sellers are responsible for the transaction privilege tax in Arizona. You can read more about these two Arizona letter rulings here. We always recommend consulting with a vetted sales tax expert if you have any questions about your business!
2. How do you register for a sales tax permit in Arizona? You can register for an Arizona sales tax permit online at the State of Arizona Department of Revenue. You can print the sales tax application or fill out the sales tax form online. To mail in the form, the address is:
License & Registration Section
Department of Revenue
PO Box 29032
Phoenix, AZ 85038-9032
3. What information do you need to register for a sales tax permit in Arizona?
- Type of ownership
- Federal Employer Identification Number or Social Security Number
- Legal Business Name
- Business Phone Number
- Mailing Address
- Email Address
- Physical Location of Business
- Bonding Requirements (if you’re a construction contractor)
- Unemployment Tax Information (for certain situations)
- North American Industrial Classification System (NAICS) code required for all businesses. Look up NAICS code.
- Identification of Owner, Partners, Corporate Officers, Members/Managing Members or Officials
4. How much does it cost to apply for a sales tax permit in Arizona? The state of Arizona charges $12.00 per application for a sales tax permit. On top of that, vendors are required to file for a sales tax permit in individual cities where they do business. (Out-of-state sellers with nexus in Arizona, read more about that here.) Each city charges its own rate, varying from $2.00 to $50.00. See “How to Register for a Sales Tax Permit with Arizona’s Cities” below for more about this.
Other business registration fees may also apply. Contact each state’s individual department of revenue for more about registering your business.
5. How long does it take to receive your Arizona sales tax permit? From the Arizona website: “If you register online on AZTaxes.gov and submit the required signature document, or you send your application by mail, your license will be mailed to you within four to six weeks. Any applicable fees should be submitted with the signature document or application. If you wish, you may visit one of our office locations and complete a JT-1 application in person, pay the fees and receive your license. Our offices close at 5:00pm and it will take some time to process your application. Therefore, we encourage you to arrive at least 45 minutes prior to closing.”
6. Do you have to renew your Arizona sales tax permit? As long as ownership or location has not changed, there is no need to renew.
How to Register for a Sales Tax Permit with Arizona’s Cities
While the state of Arizona administers most of the state’s sales tax, the following cities administer their own sales tax:
Out-of-state sellers maybe be on the hook for registering for even more city permit. For a comprehensive explanation on what to do if you are based outside of Arizona but have sales tax nexus in Arizona, check out this post on Arizona Sales Tax Requirements for Out-of-State Sellers.