Services are generally not taxable in Arizona, with the following exceptions: amusements. personal property rentals. contracting.
Businesses that perform the following activities are subject to TPT and must be licensed. retail sales. restaurants/bars. hotel/motel (transient lodging) commercial lease. amusements. personal property rentals. contracting. severance (metal mining)
Common sales tax exemptions include: Professional or personal services where the sale of tangible personal property constitutes an inconsequential element. Services rendered in addition to the sale of tangible personal property at retail.
The "qualifying party" means a person who is regularly employed by the licensee and is actively engaged in the classification of work for which the person qualifies in behalf of the licensee. The qualifying party must have the necessary experience, knowledge and skills to supervise or perform the contracting work.