AZ Sales Tax Permits States

Arizona City Tax Registration, Explained

by Jennifer Dunn

Arizona sales tax registration

Arizona is a little different than other states when it comes to sales tax. First of all, they don’t even have a sales tax. They have a transaction privilege tax (TPT), which is like a sales tax but with the onus to pay on the seller. (You can read all about Arizona transaction privilege tax here.)

Another odd thing about Arizona state tax is that online sellers are required under the Model Cities Tax Code to register for a sales tax permit in each city into which they make a sale. And this registration can cost anywhere from free to up to $50 per city. This once again proves that Arizona is one of the trickiest, most costly and most difficult states in which to collect tax.

Click here to jump directly to the table that shows you how much it costs to register for Arizona transaction privilege tax in each Arizona city.

Here’s an example Arizona individual city registration scenario that an online seller might face:

Jess is an online seller and sells her products to buyers located in the cities of Phoenix, Mesa and Hayden, Arizona. When Jess goes to remit the sales tax she collected on Arizona’s state sales tax filing website, she will be automatically registered with each of these three cities. Arizona will then bill her for the cost of the sales tax registration. It costs $50 to register in Phoenix, $20 to register in Mesa and $5 to register in Hayden. This means that not only is Jess paying her Arizona transaction privilege tax (TPT), she also owes a total of $75 to register for TPT permits in these individual Arizona cities.

What does this mean for online seller with nexus in Arizona?

As you make sales into new cities, the Arizona Department of Revenue will automatically register you for sales tax permits in each city. You may find yourself paying a fee for one or more individual city sales tax registrations each time you file an Arizona transaction privilege tax (TPT) return. Is this bananas? Yes. But, unfortunately, Arizona law requires this.

How much does it cost to register for TPT in each individual Arizona city?

This table shows how much it costs to register for a TPT permit in each individual Arizona city:

City
Tax Code
License Fee
Home Rule City?
Apache Junction AJ  50.00 yes
Avondale AV  – yes
Benson BS  5.00 no
Bisbee BB  1.00 no
Buckeye BE  2.00 no
Bullhead City BH  2.00 yes
Camp Verde CE  2.00 no
Carefree CA  10.00 no
Casa Grande CG  2.00 no
Cave Creek CK  20.00 no
Chandler CH  50.00 yes
Chino Valley CV  2.00 no
Clarkdale CD  2.00 no
Clifton CF  2.00 no
Colorado City CC  2.00 no
Coolidge CL  2.00 no
Cottonwood CW  2.00 no
Dewey/Humboldt DH  2.00 no
Douglas DL  5.00 yes
Duncan DC  2.00 no
Eagar EG  10.00 no
El Mirage EM  15.00 no
Eloy EL  10.00 no
Flagstaff FS  46.00 yes
Florence FL  2.00 no
Fountain Hills FH  2.00 no
Fredonia FD  10.00 no
Gila Bend GI  2.00 no
Gilbert GB  2.00 no
Glendale GE  35.00 yes
Globe GL  2.00 no
Goodyear GY  5.00 no
Guadalupe GU  2.00 no
Hayden HY  5.00 no
Holbrook HB  1.00 no
Huachuca City HC  2.00 no
Jerome JO  2.00 no
Kearny KN  2.00 no
Kingman KM  2.00 no
Lake Havasu LH  5.00 no
Litchfield Park LP  2.00 no
Mammoth MH  2.00 no
Marana MA  5.00 no
Maricopa MP  2.00 no
Mesa ME  20.00 yes
Miami MM  2.00 no
Nogales NO  25.00 yes
Oro Valley OR  12.00 no
Page PG  2.00 no
Paradise Valley PV  2.00 no
Parker PK  2.00 no
Patagonia PA  – yes
Payson PS  2.00 no
Peoria PE  50.00 yes
Phoenix** PX  50.00 yes
Pima PM  2.00 no
Pinetop/Lakeside PP  2.00 no
Prescott PR  5.00 yes
Prescott Valley PL  2.00 no
Quartzsite QZ  2.00 no
Queen Creek QC  2.00 no
Safford SF  2.00 no
Sahuarita SA  5.00 no
San Luis SU  2.00 no
Scottsdale SC  50.00 yes
Sedona SE  2.00 yes
Show Low SL  10.00 no
Sierra Vista SR  1.00 no
Snowflake SN  2.00 no
Somerton SO  2.00 yes
South Tucson ST  2.00 no
Springerville SV  5.00 no
St. Johns SJ  2.00 no
Star Valley SY  2.00 no
Superior SI  2.00 no
Surprise SP  10.00 no
Taylor TL  2.00 no
Tempe TE  50.00 yes
Thatcher TC  2.00 no
Tolleson TN  2.00 no
Tombstone TS  1.00 no
Tucson TU  20.00 yes
Tusayan TY  2.00 no
Wellton WT  2.00 no
Wickenburg WB  2.00 no
Willcox WC  1.00 yes
Williams WL  2.00 yes
Winkelman WM  2.00 no
Winslow WS  10.00 no
Youngtown YT  10.00 no
Yuma YM  2.00 no

(Source)

Do you have questions or comments about the strange and expensive way that Arizona require online sellers to collect transaction privilege tax? Start the conversation in the comments.

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