ADOR highlights tax compliance requirements for special events in Arizona

Arizona is well known for its year-round events, including farmer’s markets, festivals, fairs, craft shows and rodeos. A staple of all of these occasions are numerous vendors that offer customers a wide variety of goods and services.

The Arizona Department of Revenue (ADOR) reminds those who host these events and on-site sellers to heed the potential tax compliance requirements for these events.

TPT license considerations:

• Vendors may need a state transaction privilege tax (TPT) and use tax license and can register on AZTaxes.gov to file and pay online.
• All individuals and businesses making sales, including selling crafts (even considered a hobby), are required by the Department of Revenue to be licensed and responsible for TPT. This is required even if selling only one time per year at special events.
• Promoters organizing a special event may also need a TPT license. (Please note: The TPT Short Form Application is no longer being used)
• Businesses employing personnel during a special event (other than family members) may need to register for Arizona withholding tax.

Tips to determine TPT license steps for special events:

• Vendors and promoters are encouraged to apply for a TPT license online at www.AZTaxes.gov.
• The Arizona Joint Tax Application is used to apply for transaction privilege tax, use tax, withholding and unemployment insurance.
• If the business is seasonal (no more than eight months) or a transient vendor, they need to indicate the months in which the business will be conducted in Arizona.
• Transient businesses are to be licensed using their home base as the business location.
• Businesses that operate at more than one location must be licensed for each location, but can choose to obtain separate license numbers for each location or report on a consolidated license.

For more information, please visit azdor.gov or contact [email protected].