Arizona Tax Information
In addition to a state use tax assessed to the cardholder, the state of Arizona can also assess a transaction privilege tax on the merchant.
Notes for the transaction privilege tax:
- All merchants doing business in the state of Arizona are subject to the transaction privilege tax.
- Merchants doing business with the federal government, where a CBA is used in the transaction, can request an exemption from the transaction privilege tax.
- The merchant is not required to process the exemption form.
- Should the merchant choose not to request an exemption, the state allows the transaction privilege tax to be passed along from the merchant to the cardholder.
- This is allowable, as the transaction privilege tax is not a state sales tax.
Laws, Regulations, Policies
Point of Contact
- Arizona Department of Revenue
Updated February 15, 2023