|
<
Go Back
What is the "TPT tax"?
Buyers Answers
Transaction privilege tax (TPT) refers to a tax levied by the State of Arizona on certain persons for the privilege of conducting business in the state. TPT differs from the “true” sales tax imposed by many other U.S. states as it is imposed upon the seller or lessor rather than the purchaser or lessee. The seller/lessor may pass the burden of the tax on to the purchaser/lessee, but the seller or lessor is the party that remains ultimately liable to Arizona for the tax. TPT is imposed under 17 separate business classifications of which Commercial Lease is one, meaning that, at a minimum, the monthly base rent for a commercial lease is subject to this taxation.
|
