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Although commonly referred to as sales tax, TPT is differentiated from sales tax in most states in that it is a tax imposed on the seller, rather than on the purchaser. Therefore, it is ultimately the vendor, not the customer, who is liable to ADOR for TPT associated with taxable sales made in Arizona.
If a business is selling a product or engaging in a service subject to TPT, that business will likely need a license from the Arizona Department of Revenue (ADOR) and a TPT, or business/occupational license, from the city or cities in which the business has a base or operation.
A private taxpayer ruling or a taxpayer information ruling is the department's interpretation of the law or rules only as they apply to the taxpayer making, and the particular facts contained in, the request.
A tax correction notice (TCN) is a correspondence letter sent by the Arizona Department of Revenue to inform taxpayers of important account matters or changes.
Filing an Arizona TPT return is a two-step process comprised of submitting the required sales data (filing a return) and remitting the tax dollars (if any) to the ADOR. The filing process forces you to detail your total sales in the state, the amount of TPT due, and the location of each sale.