Guides a seller through Arizona's Transaction Privilege Tax compliance: determining classifications and nexus, computing state (5.6%) and city/county add-on obligations across all applicable TPT classifications, and filing the combined state + county + city return through AZTaxes.gov.
Determine whether the business has a TPT filing obligation in Arizona. Arizona imposes TPT on the seller based on in-state physical presence or economic nexus ($100,000 in gross proceeds or gross income under A.R.S. §42-5043). Confirm the business holds a current Arizona TPT license issued by ADOR, and identify the filing frequency assigned (monthly, quarterly, or annual).
Map each revenue stream to the correct TPT classification under A.R.S. Title 42, Chapter 5. Arizona has multiple classifications — Retail (5.6%), Restaurants/Bars (5.6%), Transient Lodging (5.5%), Rental of TPP (5.6%), Prime Contracting (5.6% with 65/35 split), Utilities (5.6%), Telecommunications (5.6%), and Mining (3.125%) — each with its own reporting column on the TPT return. Also identify applicable city and county add-on rates, which can bring the combined rate to ~11.2%.
Compile and reconcile total gross receipts for the filing period, then apply deductions and exemptions to arrive at net taxable receipts by classification. Arizona TPT is origin-based for most classifications, so sourcing is determined by the location where the seller's business activity occurs, not the buyer's location. Deductions are reported on the return and must be supported by documentation.
Run this workflow in your AI agent
Install the MCP connector once — your agent loads the right skills, works through each phase, and routes to a licensed Arizona accountant for review.
Enter the reconciled taxable amounts into AZTaxes.gov to generate the combined state + county + city TPT return. The single AZTaxes.gov return covers all three levels simultaneously. Compute tax due per classification, apply any credits or prior-period adjustments, confirm the total remittance, and submit by the due date (20th of the month following the end of the filing period; 28th for annual filers due in January).