AZ Sales Tax 101 Sales Tax Permits

How to Register for a Sales Tax Permit in Arizona

by Mark Faggiano

Register sales tax license Arizona

Last updated July 14, 2017

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:

Apache Junction
Avondale
Chandler
Douglas
Flagstaff
Glendale
Mesa
Nogales
Peoria
Phoenix
Prescott
Scottsdale
Sedona
Tempe
Tucson
Each of these cities requires sellers with a presence in that city to register for a city sales tax permit. Also, if you make a sale to a buyer in one of these non-program cities, you will be automatically registered for a sales tax license in this city. 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.

Would you prefer a tax professional handle your sales tax registration?

Fill out our State Registrations form and we’ll put you in touch with a vetted sales tax pro.

  • WakeForestFan

    I am trying to go to the AZ tax form online link in #2 above, but it crashes. I can access the link to print the sales tax application but I need to do it online…should I be looking for the Joint Tax Application on the AZDOR.gov site?

    • That’s weird! We’re working on updating the post. Yes, it’s the form JT-1 at the Azdor website!

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  • Peculiar Song

    Hello, I’m in the process of starting an online business in az. I wanted to know if it was necessary for me to file for sales tax permit or a business license. I have looked on so many sites including ac official sites and not found a certain answer. Any insight you could provide would be greatly appreciated.
    Thank you

  • Hi there,

    I recommend you asking this question in our Facebook group “Sales Tax for eCommerce Sellers.” You’ll find Arizona sellers there who can help. Good luck! https://www.facebook.com/groups/SalesTax4EcommerceSellers/

  • Kelsie Beaudoin

    This post was really helpful! I have two questions if you have time to answer. 1. I do not have a physical business location..so I put in my home address. Is this okay? 2. I tried filling out the form online only to have it say I have 2 locations (I assume my “physical location” (aka home) in Tempe and where I am selling in Glendale, which is listed as a non-program TPT). It wants to charge me $24 for just state tax license, since I have to file with Glendale separately. Is this correct that the state is charging me for 2 licenses/locations? And WHY?

    Thank you!

  • Kelsie Beaudoin

    This post was really helpful! I have two questions if you have time to answer. 1. I do not have a physical business location..so I put in my home address. Is this okay? 2. I tried filling out the form online only to have it say I have 2 locations (I assume my “physical location” (aka home) in Tempe and where I am selling in Glendale, which is listed as a non-program TPT). It wants to charge me $24 for just state tax license, since I have to file with Glendale separately. Is this correct that the state is charging me for 2 licenses/locations? And WHY?

    Thank you!

  • Sharon

    Arizona is very perplexing in their TPT requirements. We are starting a home-based business in an unincorporated area of Cochise County, and most of our sales will be online. However, we plan to do the occasional craft fair. I know we need to add those cities on our TPT application, but are they added as locations, meaning I pay an additional $12 for each location in addition to the City fee, or do we just pay for our physical location, plus the individual city fees?

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