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                                                           GENERAL INSTRUCTIONS
                  Transaction Privilege, Use, and Severance Tax Return (TPT‑1)
                                                           ARIZONA DEPARTMENT OF REVENUE
                                                                           www.azdor.gov

                                                           Online Filing:
 Mailing address                                           Form TPT‑1 may be filed online.   www.AZTaxes.gov is the Arizona Department of 
                                                           Revenue’s taxpayer service center web site that provides taxpayers with the ability 
Arizona Department of Revenue                              to file tax returns and pay taxes due, conduct other transactions, and review tax 
 PO Box 29010                                              account information over the internet.  Save time and expense and comply with due 
Phoenix, AZ  85038‑9010                                    date requirements with ease and convenience.  File and pay online by becoming 
                                                           a  registered  business  at www.AZTaxes.gov.    For  taxpayers  electing  to  file  and 
If you are mailing your Transaction Privilege              pay taxes electronically, the Department must receive the filing and payment on or 
Tax Return, it must received  by the                       before the last business day of the month; therefore, this transaction must be initiated 
Department on or before the second to last                 before 5:00 p.m. of the preceding day.
business day of the month.
                                                           Who Must File:
                                                           All businesses with income subject to transaction privilege tax, county excise tax, 
 Online Filing                                             use or severance tax must file a Form TPT‑1 return even if there is no tax liability 
Go to www.AZTaxes.gov                                      due for the period.  City tax for “program” cities is also reported on Form TPT‑1.  
                                                           A list of the “program” cities is found in Table II of the TRANSACTION PRIVILEGE 
                                                           AND OTHER TAX RATE TABLES  (“TAX RATE TABLES”) which are available on the 
CustOMer serviCe                                           Department’s web site (www.azdor.gov).

Center lOCatiOns                                           Most of the larger cities administer their transaction privilege taxes independently 
8:00 a.m. ‑ 5:00 p.m.                                      of the state and are called “non-program” cities. “Non‑program” city taxes are not 
                                                           reported on Form TPT‑1.  A listing of “non‑program” cities is found in Table III of the 
Monday through Friday                                      TAX RATE TABLES.
 (except Arizona holidays)
                                                           Due Date for Form TPT-1: 
 Phoenix Office                                            Arizona Revised Statutes (A.R.S.) § 42‑5014 states that Form TPT‑1 is due on the 
 1600 W Monroe                                             20 thday of the month following the month (or other reporting period) in which the tax 
Phoenix, AZ  85007                                         is collected or accrued.  (This date is used for the computation of penalties or interest 
                                                           that applies to returns or payments that are filed late.)  However, A.R.S. § 42‑5014 
 Tucson Office                                             allows  that  a  return  will  be  considered  to  be  filed  timely  if  it  is  received  by  the 
                                                           Department on or before the second to last business day of the month.    A business 
 400 W Congress                                            day is any day except Saturday, Sunday, or a legal Arizona state holiday.  See “Online 
 Tucson, AZ  85701                                         Filing” above for the due date of electronically filed returns, .

7:00 a.m. ‑ 6:00 p.m.                                      Late Filing Penalty – Other Penalties
                                                           All returns that are not filed timely are subject to a late filing penalty.  The late filing 
Monday through Thursday                                    penalty  imposed  by  A.R.S. § 42‑1125(A),  as  qualified  by  A.R.S. § 42‑5014(E), 
8:00 a.m. ‑ 12:00 p.m.                                     is computed against the total amount of  tax  reported  on the return, without any 
                  Friday                                   deduction for tax that was paid on or before the due date.  A late payment penalty and 
 (except Arizona holidays)                                 other penalties may apply as provided in A.R.S. § 42‑1125.  Penalties and interest 
                                                           are assessed based on the statutory due date of the 20th day of the month.
      Mesa Office
                                                           Amended Returns:
      55 N Center                                          Form TPT‑1  must  also  be  used  to  amend  original  returns  that  were  filed  for  any 
 Mesa, AZ 85201                                            previous reporting periods.  To amend a previously filed Form TPT‑1, check the box 
(This office does not handle billing or account disputes.) in Section I marked “Amended Return” and complete the return with the corrected 
                                                           numbers.   Amended  Form  TPT‑1  returns  require  some  changes  in  the  reporting 
                                                           of certain lines on the return as specifically noted in these instructions.  See the 
CustOMer serviCe                                           instruction items shown with an asterisk (*).
telephOne nuMbers                                          PLEASE NOTE:  All of the lines in the TPT-1 return must be resubmitted on the 
                                                           amended TPT‑1 return – not just the changed lines.
8:00 a.m. ‑ 5:00 p.m.
                                                           DUE DATE:  An amended return which claims a refund or credit must be filed within 
Monday through Friday                                      four years of the due date of the original return or four years from the date the original 
 (except Arizona holidays)
                                                           return was filed, whichever date is later.  A taxpayer may not use an amended return 
                                                           to change a payment of estimated tax or to change the application of a claimed 
 Phoenix Area                                              estimated tax payment.
 (602) 255‑3381

 Within Arizona
 1 (800) 352‑4090
ADOR 10872 (4/19)                                                                                                                         Page 1

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Transaction Privilege, Use, 
and Severance Tax Return (TPT‑1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   INSTRUCTIONS
                        TRANSACTION PRIVILEGE, USE, AND                                                                                                                                                                                                                                                                                                                                                                                                                                                         TPT-1 return is due the 20 thday of the month following                                                                                                                                                                                                                                                                                                                          The  following  numbered  instructions  correspond  to  the  numbered 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                STATE LICENSE NUMBER:                                                                                                                                                                                                                                                                                                                                                            sections of the sample Form TPT‑1.      An  example  of  completing 
                        PO ArizonaSEVERANCEBOXFor assistance29010Department•out-of-statePHOENIX,TAXoforRETURNRevenueinAZ the85038-9010Phoenix(TPT-1)area:  (602) 255-3381 or                                                                                                                                                                                                                                                                                                                                    TAXPAYERthe reportingIDENTIFICATIONperiod.                                                                                                                            NUMBER:                                                                                                                                                                                                    Section II of Form TPT‑1 and Schedule A is provided on page 
                                                                 Statewide, toll free from area codes 520 and 928:  (800) 352-4090                                                                                                                                                                                                                                                                                                                                                                               EIN        SSN
  I.  TAXPAYER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      PERIOD BEGINNING:                                                                                                                                                                              PERIOD ENDING:                                                                                                                                                                    4.  When completing this form, please print or type in black ink.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                M M D D Y Y Y Y                                                                                                                                                                                M M D D Y Y Y Y
           ReturnAmended                                                                                                                ReturnMultipage                                                                                                                             OnlyOne-TimeReturn                                                                                                               Final(CANCELReturn:LICENSE)                                                            DOR USE ONLY                                                                                                                                                                                                                              LABELED RETURN
      BUSINESS NAME                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Section I – Taxpayer Information
      C/O
      ADDRESS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   POSTMARK DATE                                                                                                                                                                                                                                                                                                                                                                  1 *Business Name and Address
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 If you are preparing a blank form, write in the correct information.  If you 
      CITY                                                                                                                                                                                                                                                                  STATE                                              ZIP                                                                                                                                                                              RECEIVED DATE                                                                                                                                                                                                                                                                                                                                                                    are completing a preprinted form, check the accuracy of the business 
       Address Changed                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          name and mailing address printed on the form.  Make corrections on 
 LINE                                                                                                    (B)                                                              (C)                                                                                               (D)                                                                                                                                          (E)                                                                                            (F)                                                                             (G)                                                                              (H)                                                                                           (I)                                                           (J) = (F × I)
 II.  TRANSACTIONDESCRIPTIONBUSINESS(A)                                                     DETAIL REGION CODE BUSINESSCODE(If more reportingGROSS AMOUNTlines areDEDUCTIONnecessary,AMOUNTpleaseNETattachTAXABLEcontinuationAMOUNT                                                                                                                                                                                                                                                                                                                                                                  TAX RATEpages.)TOTAL TAX AMOUNT                                                                                                                              ACCOUNTINGCREDIT RATE                                                    ACCOUNTINGCREDIT                                      the form as required.  If you make changes to the address, check 
1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                the “Address Changed” box.  If the return is an *amended return, a 
2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                multipage return, a one‑time only return, or if you are canceling your 
3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                license and this is your final return, please check the appropriate 
4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                box.
5
 Subtotal .......................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              2 State License Number
  III.  TAX COMPUTATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          If  you  are  preparing  a  blank  form,  write  in  the  correct  number.    If 
      1 Total deductions from Schedule A ...............................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                 1                                                                                                                                                                                                                                                                                                                       you  are  completing  a  preprinted  form,  check  the  accuracy  of  the 
      2 Total Tax Amount (from column H) ..............................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                  2                                                                                                                                                                                                                                                                                                                       Transaction Privilege Tax or Use Tax license number printed on the 
      3 State excess tax collected ...........................................................................                                                                                                                                                                                                                                                                                                                                                                                                                       +                                   3                                                                                                                                                                                                                                                                                                                       form.  This number should include all eight (8) numerical digits.  The 
      4 Other excess tax collected ..........................................................................                                                                                                                                                                                                                                                                                                                                                                                                                        +                                   4
      5 Total Tax Liability:  Add lines 2, 3, and 4 ......................................................                                                                                                                                                                                                                                                                                                                                                                                                                           =                                   5                                                                                                                                                                                                                                                                                                                       state license number must also be placed in the top right hand corner 
      6 Accounting Credit (from column J) ..............................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                 6                                                                                                                                                                                                                                                                                                                       of all other pages of the return.
      7 State excess tax accounting credit:  Multiply line 3 by .01 ..........................                                                                                                                                                                                                                                                                                                                                                                                                                                       +                                   7
      8 Total Accounting Credit:  Add lines 6 and 7 .................................................                                                                                                                                                                                                                                                                                                                                                                                                                                =                                   8                                                                                                                                                                                                                                                                                                                     3 Taxpayer Identification Number
      9 Net tax due line:  Subtract line 8 from line 5 ................................................                                                                                                                                                                                                                                                                                                                                                                                                                                                                  9                                                                                                                                                                                                                                                                                                                       In  addition  to  the  Transaction  Privilege  Tax  License  Number,  a 
      10 Penalty and interest .....................................................................................                                                                                                                                                                                                                                                                                                                                                                                                                  +             10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Taxpayer  Identification  Number  is  also  required  when  filing  any 
      11 TPT estimated payments to be used ...........................................................                                                                                                                                                                                                                                                                                                                                                                                                                               -             11                                                                                                                                                                                          ORIGINAL REMITTED AMOUNTAMENDED RETURN ONLY                                                                                                       return.  Check the accuracy of the Taxpayer Identification Number.  
      12 Total amount due this period .......................................................................                                                                                                                                                                                                                                                                                                                                                                                                                        =             12                                                                                                                                                                                       $
      13 Additional payment to be applied (for other periods) ...................................                                                                                                                                                                                                                                                                                                                                                                                                                                    +             13                                                                                                                                                                                                                                  DOR USE                                                                                                   The Taxpayer Identification Number is the number that the licensee 
      14 TOTAL AMOUNT REMITTED WITH THIS RETURN ..................................                                                                                                                                                                                                                                                                                                                                                                                                                                                   =             14                                                                                                                                                                                       $                                                                                                                                                    uses to report federal income tax for the business:  either the federal 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 employer  identification  number  (EIN)  or  social  security  number 
      anyknowledgeUnderknowledge.penaltiesand belief,of  perjury, it is true,I  declare correctthat and complete. I  have examinedDeclarationthis  return, of preparerincluding (otheraccompanyingthan taxpayer)schedulesis based onandallstatements, information ofandwhichto  the preparerbest hasof  my                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (SSN).  Missing, incorrect or illegible Taxpayer Identification Numbers 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   ► PAID PREPARER’S SIGNATURE (OTHER THAN TAXPAYER)                                                                                                                                                                                                                                                                                                                                             may result in a penalty and will cause delays in processing the return.
      ►                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
      ADOR 10872 (2/16)TAXPAYER’S SIGNATURE                                                                                                                                                                                                                                                                                          DATE                                                                                                                                                            PAID PREPARER’S EIN OR SSN
                                                                                                                                                                                                  Please make check payable to Arizona Department of Revenue.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               4 Reporting Period
Transaction Privilege, Use, and Severance Tax Return (TPT-1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  LICENSE NO.   ______________________                                                                                                                                                                                               Check the accuracy of the PERIOD BEGINNING and the PERIOD 
                                                                                                                                                                                                                                                                                                         Schedule A:  Deduction Detail Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ENDING  boxes,  and  make  corrections  if  necessary.    If  this 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 information is missing, write in the correct periods in an eight‑digit 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 format (MMDDYYYY).  Taxpayers that have been authorized by the 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Department to file on a quarterly or annual basis must enter the first 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 and  last months of the quarter or year in these periods.
      www.azdor.gov.   beCodeweb Formas  onwelldisallowedpagesite. TheDeduction TPT-1. asand1. deductiontheTheBusinessSome(SeeandstatutoryactualScheduleCodes pagepenaltiesof amountsCodetextthewording 4forAofofcodesmustreported. anditemizing thethethatandTPT-1statutoryinterestmaybehaveanycompleteddeductions, beThebeenInstructions.administrative willuseddeduction, totalapply.listedfor andof)thewithonmoreattachedaexemption theguidance amountsparaphrased thanlinesforoneinlistedfordeductionsSectionorbusinesseachexclusion indescription Schedulededuction II,code.  Columntoisbecontrolling ofAallowed. Severalmustthecode,E mustdeduction equalUnsubstantiatedadditional arebefortheprovided itemizedamounts total(orDeductionexemption),ofbyonthetakencategorytheorDeductionincorrectDepartment’sasCodes,deductionsareforeachlisteddeductionsAmounts Regionat on  listedwill 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Section II – Transaction Detail
                                                                                                                                                                                                                                                                                                                                                                              SCHEDULE A
        Deduction Detail                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         *Note:  For an amended return, complete Section II (and Schedule 
                                                                                                                                                                                                                                                                                                                                                                                                                      (N)                                                                                                                                                                                                                        (O)
       LINE REGION(K)CODE                                                                             BUSINESS(L)CODE                                                                                                              DEDUCTIONCODE(M)                                                                                                                                          DEDUCTIONAMOUNT                                                                                                                                                                                            DEDUCTIONDESCRIPTIONCODE OF                                                                                                                                                                                                                                                              A) with the corrected numbers.  Include all lines that were present 
      1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          on the original return, even if there are no changes to some lines.  
      2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          See below for special instructions for certain lines in Section III Tax 
      3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Computation.
      4
      5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          For any return which requires more than five lines, use a continuation 
      6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          sheet to report the additional lines, and check the “multipage return” 
      7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          box in Section I.
      8
      9
      10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       5 Business Code Description [Column A]
      11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         This column will identify your type of business, or “code.”  For example, 
      12                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         “retail,” “restaurant/bar,” “contracting,” etc.   A list of business codes 
      13                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         and other reporting categories, and the corresponding business code 
      14                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         numbers, can be found in Table I of the TAX RATE TABLES.
      15
      16                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         When reporting “program” city tax on the TPT‑1, write the city name 
      17                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         in this column.   A list of “program” cities can be found in Table II of the 
      18                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         TAX RATE TABLES.
      19
      20                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       6 Region Code [Column B]
      21                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         This  column  identifies  the  county  or  city  in  which  you  conduct 
      22
      23                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         business, or the special region code required of some businesses.  
      A Subtotal of Deductions ..............................                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    For counties or special regions, the region code will be three letters 
      B Deduction Totals from Additonal Page(s) ..                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               (e.g., MAR for Maricopa County).  For program cities, the region code 
      C Total Deductions (line A + line B = line C)..                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            will be two letters (e.g., KM for Kingman).  Please refer to the TAX 
            Total Must Equal Total on Page 1, Section III, line 1
      ADOR 10872 (3/15)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          RATE TABLES for the appropriate region codes.  (See Tables II, IV, 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 or V.) 

ADOR 10872 (4/19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Page 2

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Transaction Privilege, Use,
and Severance Tax Return (TPT‑1) INSTRUCTIONS

7 Business Code [Column C] Accounting Credit
For reporting state and county tax, this column identifies the three‑digit The State of Arizona provides a credit for accounting and reporting
number corresponding to your business codes, which can be found expenses. The accounting credit is applicable only to state
in Table I of the TAX RATE TABLES. (e.g., 017 is the business code Transaction Privilege Tax or Severance Tax; it does not apply to
number for a retail business). city, county or other taxes. (See Table I of the TAX RATE TABLES
for the state business codes eligible for the accounting credit.) The
For reporting program city tax, this column identifies the category of Department allows this credit to taxpayers who file and pay their
city tax that is being reported. These three‑digit numbers can be found transaction privilege taxes timely and in full. If these conditions are
in Table II of the TAX RATE TABLES. Please note that these numbers not met, the accounting credit will be disallowed. The credit is equal
may vary by city. to 1% of the amount of state tax due, but cannot exceed $10,000 for
a calendar year. [See A.R.S. § 42‑5017 and Arizona Administrative
8 Gross (Receipts) Amount [Column D] Code (A.A.C.) Rule R15‑5‑2007 for more information.]
For each line item (reported business code or city), enter the gross
income in column D. Enter the gross amount of money, cash or other 13 Accounting Credit Rate [Column I]
consideration you received during the reporting period of the return The accounting credit rate for your code should be preprinted on the
(if you are using the cash receipts basis of accounting), or the total form. If you are preparing a blank form, you can find the accounting
amount of revenue you invoiced, billed or otherwise recognized during credit rates in Table I of the TAX RATE TABLES.
this reporting period (if you are using the accrual basis of accounting).
For both methods of reporting, the amount reported as gross 14 *Accounting Credit [Column J]
income should include the tax amount collected. The tax will be Multiply column F by column I. Enter the result in column J. This is
deducted in column E. your accounting credit. (For an *amended return in which the state
transaction privilege tax liability is increased, the accounting credit is
9 Deduction Amount [Column E] limited to what was claimed on the original return.)
Enter that portion of the reported gross receipts that is deductible or
exempt income. (For most deductions or exempt income, the seller Subtotals
should retain appropriate documentation relating to the deductible It is only necessary to add the amounts in columns E, H and J. For
or exempt income.) Deductions are to be itemized by category in multipage returns, you may enter the grand totals of all columns E, H
Schedule A on page 2 of the TPT‑1 form. Unsubstantiated or incorrect and J on this line.
deductions will be disallowed and penalties and interest may apply.
(See separate instructions for completing Schedule A on page 4.) 15 Section III – Tax Computation
Common deductions include income from: sales for resale; labor
or delivery charges for retail sales; sales of exempt manufacturing Line 1: Total Deductions from Schedule A
equipment; and exempt retail food sales. Enter the sum of the deduction amounts entered in Schedule A, which
should equal the sum of all amounts entered in column E.
Deduction for Taxes
The most common deduction is the deduction for tax itself. The gross Line 2: Total Tax Amount
receipts in column D should include whatever tax you have collected. This amount should be the sum of the amounts entered in column H
Deduct this tax amount to avoid calculating tax on an amount that on page 1 plus any additional pages.
already includes tax. You are allowed to deduct state, county, and city
taxes you collected and included in your gross amount. Or, if you did Line 3: State Excess Tax Collected
not separately charge and collect tax, you are allowed to assume that By law, if you collected more tax than is calculated as due, the
the tax collected is a part of the gross receipts amount, and you can combined excess must be reported and paid to the Department of
factor that tax. Revenue. Excess state tax collected should be entered on line 3.
Tax Factoring Line 4: Other Excess Tax Collected
Tax factoring is appropriate only when the taxes were not separately Other excess tax (city or county) collected/charged should be entered
charged to the customer or charged to the customer at an incorrect rate. on line 4.
Taxes can be factored from gross receipts by using a mathematical
formula, or by using the “factors” provided on the Department’s Line 5: Total Tax Liability
web site. (Additional information about factoring is provided in the Add lines 2, 3, and 4 and enter the sum on line 5.
Department’s TRANSACTION PRIVILEGE TAX PROCEDURES TPP
00‑1 and TPP 00‑2 available at www.azdor.gov.) Line 6: Accounting Credit
This amount should be the sum of the amounts entered in column J
10 Net Taxable Amount [Column F] on page 1 plus any additional pages.
Subtract column E from column D. Enter the result in column F. This
is the net income that is subject to tax. Line 7: State Excess Tax Accounting Credit
Multiply line 3 by .01 and enter the result on line 7.
11 Tax Rate [Column G]
If you receive your tax returns by mail or file online, the tax rates Line 8: Total Accounting Credit
for your code or for the cities for which you report should be Add lines 6 and 7 and enter the result on line 8.
preprinted on Form TPT‑1. If they are not preprinted or you obtain
a blank form, you can find the tax rates by checking the TAX Line 9: Net Tax Due
RATE TABLES, which are available on the Department’s web site Subtract line 8 from line 5 and enter the result on line 9.
(www.azdor.gov) and are updated frequently. The tax rate shown
on the return should be expressed as a decimal. (For example, Line 10: Penalty and Interest
By law, returns that are filed late are assessed a
6.3% = .06300) late filing penalty of
4.5% per month or any portion of a month up to a maximum of 25% of
the amount of tax reported on the return without any deduction for
12 Total Tax Amount [Column H] tax paid on or before the due date. Thelate payment penalty is .5%
Multiply column F by column G. Enter the result in column H.
per month up to a maximum of 10%. The maximum total of these two
penalties cannot exceed 25 percent of the tax due.

ADOR 10872 (4/19) Page 3

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Transaction Privilege, Use, 
and Severance Tax Return (TPT‑1)                                                                                                                                               INSTRUCTIONS

   Arizona’s interest rate is the same as the federal rate and continues       Example:  Completing Section II and Schedule A
   to accrue until taxes are paid.  Interest rate tables are available on the  A retailer located in Carefree (which has a 3% city privilege tax rate) 
   Department’s web site, or you may contact the Department at one of          has $2,174.50 of gross receipts which breaks down as follows:
   the phone numbers listed on page 1.  Late payments of estimated tax 
   are also subject to penalty and interest.                                         GROSS RECEIPTS.....................................                                       $2,174.50
                                                                                           DEDUCTIONS:
   *Line 11:  Estimated Tax Payments                                                       Nontaxable Sales for Resale..................                                           400.00
   Visit AZTaxes.gov to make your Transaction Privilege Tax Estimated                      Exempt Delivery Charges ......................                                          120.00
   Payment.  (Note:  For an *amended return in which an estimated tax                      State and County Tax ($1,500 × 7.3%)                                                    109.50
   payment was claimed on the original, do not restate the payment.)                       Carefree City Tax ($1,500 × 3.0%) .........                                                  45.00
                                                                                     TOTAL DEDUCTION AMOUNT ...................                                                  <$674.50>
   Annual Estimated Tax Payment Filing Requirements                                  NET TAXABLE AMOUNT                                                                          $1500.00
   Some taxpayers are required to make a single Annual Estimated Tax 
   Payment  on  June  20th.    These are taxpayers that have previously        Carefree is a “program” city (located in Maricopa County) whose city 
   had an annual tax liability of $1,000,000 or more, or those who can         taxes  are  administered  and  collected  by  the  Department  on  Form 
   reasonably anticipate such a liability in the current year.  (See A.R.S.    TPT‑1.  Combined state and county taxes are reported on one line in 
   § 42‑5014,  A.A.C. Rule  R15‑5‑2215  for additional  information  and       Section II, and city taxes are reported on a separate line in Section 
   instructions.)                                                              II.  In reporting the state transaction privilege tax and county excise 
                                                                               taxes, MAR is the Region  Code for Maricopa  County, and                                                                  017 is 
   Line 12:  Total Amount due this Period                                      the state Business Code for retail sales.  In reporting the Carefree 
   Add lines 9 and 10.  Subtract line 11 from this amount and enter the        privilege tax,            CA is the Region Code and                            017 is the Business Code 
   result on line 12.                                                          for Carefree’s city retail privilege tax.
   Line 13:  Additional Payment to be Applied                                  In Section II on the front of the form, the income, deductions and 
   If you owe a tax, penalty or interest liability originating from the filing tax are reported as follows:
   of a previous TPT‑1 return, you may include payment of this liability        II.  TRANSACTION DETAIL  (If more transaction locations, please attach additional sections.)
                                                                                     (A)                 (B)         (C)              (D)     (E)                 (F)          (G)                       (H)            (I)
   with this return.  Please enter the amount of the additional payment         LINE DESCRIPTIONBUSINESS REGION CODE BUSINESSCODE AMOUNTGROSS DEDUCTIONAMOUNT NETAMOUNTTAXABLE TAX RATE TOTALAMOUNTTAX          ACCOUNTINGCREDIT RATE
   on line 13.
                                                                               1 Retail                  MAR         017          2174 50     674 50          1500 00 .07300            109 50
   *Line 14: Total Amount Remitted With This Return                            2 Carefree CA                         017          2174 50     674 50          1500 00 .03000                             45 00
   Add lines 12 and 13 and enter the result on line 14.  (For an *amended      3
   return, you may note the amount paid with the original return in the 
   box to the right of line 12.  On line 14, indicate only the   additional     Subtotal ................................                     1349 00                                   154 50
   amount remitted with the amended  return.  If the amended  return 
   is claiming a  refund, leave  line  14 blank  and  the Department  will 
   compute the refund due.)                                                    On Schedule A, the deductions are itemized as follows:
                                                                                                                                          SCHEDULE A
   Signature                                                                         Deduction Detail
                                                                                                                                  (M)                         (N)                                            (O)
   Sign the return.   Every return must be signed by the taxpayer or the        LINE REGION(K)CODE       BUSINESS(L)CODEDEDUCTIONCODE             DEDUCTIONDESCRIPTIONCODEOF                             DEDUCTIONAMOUNT
   taxpayer’s authorized agent as noted.
                                                                                1 MAR                    017                      551 Tax Collected or Factored                                          154 50
                                                                                2 MAR                    017              503         Sales for Resale                                                   400 00
   Paid preparer’s signature.  If the return has been prepared by a paid             MAR                 017              549         Services Provided by Seller                                        120 00
   preparer, the return must include the paid preparer’s signature and          3
   Taxpayer Identification Number.                                              4 CA                     017                      551 Tax Collected or Factored                                          154 50
                                                                                5 CA                     017              503         Sales for Resale                                                   400 00
                                                                                6 CA                     017              549         Services Provided by Seller                                        120 00
                                                                               A Subtotal of Deductions ................................................................................................ 1349 00
   SCHEDULE A INSTRUCTIONS (Page 2)                                            B Deduction Totals from Additonal Page(s) ....................................................................                0 00
                                                                               C Total Deductions (line A + line B = line C)....................................................................         1349 00
16 In Schedule A, the deductions that have been taken in column E                    Total Must Equal Total on Page 1, Section III, line 1
   on page 1 must be itemized by category.  The total of the amounts 
   listed in Schedule A should equal the total of the amounts listed in 
   column E.  The deductions taken on all lines in Section II, including       You will notice that the Total Deductions listed in Schedule A is equal 
   lines that report city tax, must be itemized.  To view all codes and the    to the total of the amounts listed in column E in Section II.  The total 
   statutory language of the deductions for which codes are provided,          from Schedule A is also to be entered on line 1 in Section III on page 
   as well as any administrative guidance provided by the Department,          1  of  Form  TPT‑1.  Unsubstantiated  or  incorrect  deductions  will  be 
   please go to   www.azdor.gov/Forms/TransactionPrivilegeTax.aspx             disallowed and penalties and interest may apply.
   and click on “TPT‑1 Deduction Codes.”
   Schedule A should be completed as follows: In columns  K(Region 
   Code) and  L  (Business  Code),  list  the  region  code  and  business 
   code  corresponding  to  the  line  on  which  the  deduction  was  taken 
   in Section II on page 1.  In column   (DeductionMCode), choose the 
   appropriate deduction code from the Deduction Code List.  In column 
   N (Deduction Amount), list the description of each deduction code. In 
   column O (Description of Deduction Code), list the specific amount of 
   each deduction.The total itemized deductions in Schedule A should 
   equal the total of the deduction amounts in column E in Section II.

ADOR 10872 (4/19)                                                                                                                                                                                        Page 4

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