In Arizona, the Transaction Privilege Tax (TPT) applies to a wide range of products and services, subject to specific classifications:

Tangible Personal Property:

• General Merchandise: Clothing, electronics, furniture, household goods.

• Groceries: Prepared foods and certain beverages are taxable, whereas most food for home consumption is exempt.

• Vehicles: Sales of motor vehicles, boats, and other transportation means.

• Utilities: Electricity, water, natural gas, and telecommunications services.

Digital Goods and Services:

• Digital Products: Software downloads, music, movies, e-books (taxability may vary by locality).

• Online Services: Subscriptions and other digital services may be taxable based on delivery and usage.

Services:

• Professional Services: Legal, accounting, and consulting services may be taxable depending on the transaction specifics.

• Repair Services: Maintenance and repair of tangible personal property incur TPT.

• Personal Services: Gym memberships, personal training, and similar services may be taxable in certain jurisdictions.

Hospitality and Recreation:

• Lodging: Hotel and short-term rental stays.

• Dining: Restaurant meals, take-out, catering.

• Amusements: Event tickets, concerts, sporting events, movies.

Construction and Contracting:

• Contracting Services: Construction, remodeling, and home improvement services.

• Building Materials: Home improvement supplies in taxable transactions.

Miscellaneous:

• Medical Devices and Products: Certain medical devices may be taxable.

• Alcohol and Tobacco: Subject to specific excise taxes in addition to TPT.

Businesses must verify the taxability of their products and services based on state and local regulations to ensure accurate tax collection and compliance.