Are haircuts and salon services taxable in Arizona?

“Therefore, if an activity does not fall under one of the 17 taxable business classifications, its associated gross proceeds will not be subject to TPT.”

“A beauty salon or barber shop proprietor, who regularly offers for sale bottled shampoo and hair care products to customers, would be subject to transaction privilege tax under the retail classification”

“Arizona transaction privilege tax (TPT), commonly referred to as a sales tax, is a tax on vendors for the privilege of doing business in the state.”

“Table 1 provides the tax rates which combine the state’s transaction privilege tax rate of 5.6% and the county excise tax rate.”

“Cities and towns in Arizona impose privilege taxes that are similar to those of the state.”

“A eight-digit number issued to the business when approved for a transaction privilege tax license.”

“The cost for each license per location is $12.”

“Such businesses must not use a resale certificate for the purchase of items utilized in connection with its professional or personal service occupation or service business.”

“The purchase price of the tangible personal property to the person rendering the services represents less than fifteen percent (15%) of the charge, billing, or statement rendered to the consumer of the service”

“the gross proceeds of sales or gross income derived from the redemption of any cash equivalent by the holder as a means of payment for goods or services that are taxable under this article is subject to the tax”