City of Tempe, AZ
Home MenuTransaction Privilege Tax (TPT or Sales Tax)
💰 Transaction Privilege Tax (TPT)
What Is TPT?
The Transaction Privilege Tax (TPT)—often called a sales tax—is actually a tax on businesses for the privilege of doing business in Arizona.
If your business sells products or provides taxable services, you must have a TPT license from the Arizona Department of Revenue (ADOR).
👉 Apply, file, and pay atAZTaxes.gov
Many cities, including Tempe, also require a city-level general business license or regulatory license for businesses operating within their limits.
🗓️ Filing & Payment Due Dates
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Monthly returns: Due by the 20th of the month following the reporting month
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Quarterly returns: Due by the 20th of the month following the end of the quarter
⚠️ File and pay online at AZTaxes.gov.
💤 If My Business Had No Sales
You must still file a $0 TPT return even if you had no sales or tax due for the period.
Failure to file results in a $25 penalty from ADOR.
📊 Understanding Gross Revenue
Gross revenue (or gross receipts) means everything your business earns before expenses — including:
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Cash, credit, or other payment received
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Value from bartering or trades
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Interest, service, or finance charges
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All amounts billed to customers (even if unpaid)
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Taxes (including the TPT itself)
Defined under A.R.S. § 42-5001(4)
🧾 Example:
If you sell $10,000 in goods, $6,000 in expenses(labor and supplies) and collect $800 in TPT, your gross revenue is $10,800, not $4,000 (after expenses).
Then, you can deduct code 551 for the $800 tax collected.
📉 Common Deductions & Exemptions
You must include all income in gross revenue first, then list deductions separately on your return.
Common deductions include:
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Sales for resale
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Out-of-state sales
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Bad debts written off
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Refunds or returns
👉 Claim deductions directly on AZTaxes.gov
🏙️ Tempe TPT Codes & Tax Rates
| Business Activity | Code | Tax Rate |
|---|---|---|
| Advertising | 018 | 1.80% |
| Amusements | 012 | 1.80% |
| Contracting - Prime | 015 | 1.80% |
| Contracting - Speculative Builders | 016 | 1.80% |
| Contracting - Owner Builder | 037 | 1.80% |
| Job Printing | 010 | 1.80% |
| Manufactured Buildings | 027 | 1.80% |
| Timbering & Extraction | 020 | 1.80% |
| Severance - Metal Mining | 019 | 0.10% |
| Publications | 009 | 1.80% |
| Hotels | 044 | 1.80% |
| Hotel/Motel (Additional) | 144 | 5.00% |
| Commercial Rental, Leasing & Licensing for Use | 213 | 1.80% |
| Rental/Leasing of Tangible Property | 214 | 1.80% |
| Restaurants & Bars | 011 | 1.80% |
| Retail Sales | 017 | 1.80% |
| Retail Food for Home Consumption | 062 | 1.80% |
| MRRA Amount | 315 | 1.80% |
| Communications | 005 | 1.80% |
| Transporting | 006 | 1.80% |
| Utilities | 004 | 1.80% |
| Use Tax – Purchases | 029 | 1.80% |
| Use Tax – From Inventory | 030 | 1.80% |
City Code: TE
County: MAR (Maricopa)
📞 Need Help?
Tempe Tax & License
📍 20 E. 6th Street, Third Floor, Tempe, AZ 85281
🕒 Hours: Monday–Friday, 8 a.m.–5 p.m., walk-ins until 4:30p.m. (except City holidays)
📧 [license@tempe.gov]
📞 480-350-2955