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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.