At least one local Transaction Privilege Tax (TPT) rate change took effect in Arizona on January 1, 2019. The TPT is Arizona’s version of a sales tax: Instead of taxing the transaction, or sale, it taxes the vendor for the privilege of doing business in the state. However, the TPT feels like a sales tax to customers because vendors typically pass the tax on to them.

Different business activities may be subject to different tax rates in Arizona, as evidenced by the following rate change.

On January 1, 2019, the Town of Marana decreased the TPT rate from 2.5% to 2% for the following business classifications:

• Amusement
• Commercial rental, leasing, and licensing for use of real property
• Hotels
• Job printing
• Manufactured buildings
• MMRA amount
• Publication
• Rental, leasing, and licensing for use of tangible personal property
• Rental occupancy
• Restaurants and bars
• Retail sales
• Timbering and other extraction
• Transporting
• Use tax from inventory
• Use tax purchases

Rates for the following business classifications in Marana dropped from 4.5% to 4%:

• Communications
• Utilities

There’s no change to the rates for the following business classifications in Marana:

• Contracting, owner builder
• Contracting, prime
• Hotel/motel (additional tax)
• Severance, metal mining

Finally, Marana no longer has the following business classifications:

• Retail sales, single item portion over $5,000
• Use tax purchase, single item portion over $5,000

TPT license renewals

All licensed businesses in Arizona were required to renew their Arizona Transaction Privilege Tax license by January 1, 2019.

Need to register for sales tax or renew your business license in Arizona or other states? Avalara Licensing can help.