NOTE: The information below is based on available information from the State taxation authority. Please work with the hotel, merchant, or vendor to confirm the requirements of the specific State. Should the hotel, merchant, or vendor have any questions, they should reach out directly to the State for clarification.
Are Travel IBA (6th digit 1, 2, 3, 4) transactions sales tax exempt? No
Additional information or instructions: Unlike most States, the State of Arizona does not directly assess a State sales tax to the cardholder, and instead assesses a transaction privilege tax on the merchant. All merchants doing business in the State of Arizona are subject to the transaction privilege tax. The State of Arizona allows for merchants doing business with the Federal Government, using a CBA solution, to request an exemption from the transaction privilege tax with the Transaction Privilege Tax Exemption Certificate. Please note that the merchant is not required to process the exemption form and should the merchant choose not to engage in the exemption process, the State allows the transaction privilege tax to be passed along from the merchant to the cardholder. This is allowable as the pass along transaction privilege tax is not a State sales tax.
Do I need a form? Yes, forms are required for Transaction Privilege tax exemptions made for Purchase Card transactions.
Transaction Privilege Tax Exemption Certificate
Who do I contact if I have questions?
Arizona Department of Revenue
*Updated on 01/20/23