How to Tax Special Events in Arizona
- Sales Tax News
- Jan 14, 2016 | Gail Cole
Conducting certain special events in Arizona, including swap meets, arts and crafts shows, and fairs, may require a transaction privilege and use tax (TPT) license.
The following points should help clarify when a TPT license is required and how TPT charges should be classified.
Promoters of special events may obtain a TPT license and run all sales through that license, so that individual vendors do not have to get a license. In this case, the promoter is responsible for filing and remitting the tax.
Promoters who also sell taxable goods at retail are required to charge TPT on those sales under the “retail” classification. It is important to note that sales of crafts made as a “hobby” by the seller may also be subject to tax. See ARS §42-5061.
Fees charged by a promoter to enter an event, play games, or ride horses, balloons, or other rides are subject to TPT under the “amusement” classification.
Food and drink
Sales of food and beverages for consumption on premises are subject to TPT under the “restaurant” classification. See ARS §42- 5074.
Sales of alcohol require a liquor license, available from the Arizona Department of Liquor Licenses and Control.
Personal property rentals
Fees to lease or rent tables, chairs, public address systems or other tangible personal property (not included in the charge for the space rental) may be subject to TPT under the personal property rental classification. See ARS §42-5071.
Taxable charges generally include charges for assembly, delivery, installation, insurance, labor, maintenance, pick-up, repairs, etc.
Promoters who charge vendors fees to participate in the event may be required to collect and remit TPT on space rentals under the commercial lease classification. See ARS §42-5069.
Additional information is available from the Arizona Department of Revenue. See Promoters of Special Events.
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