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General Information

Under the provisions of ARS § 42-5167, a use tax direct payment permit may be issued to a taxpayer

that has annual out-of-state purchases of tangible personal property that exceeds $500,000 during the

immediately preceding calendar year. A valid use tax permit will allow the holder to self-assess and pay

directly to the Department the use tax due for all tangible personal property subject to use tax. The permit

will be effective upon the date it is issued by the Department. A vendor subject to Transaction Privilege

Tax shall not accept a Direct Payment Permit to relieve the vendor of its liability for Transaction

Privilege Tax.

Upon approval, the Department will issue a numbered direct payment permit. The permit holder should

issue a copy of the permit to an out of state vendor of tangible personal property with a completed

Arizona Form 5000 identifying the reason on line 19, as “Direct Payment Permit” and including the permit

number issued. An out-of-state vendor that accepts a completed Arizona Form 5000 and a copy of the

Department’s issued Direct Payment Permit is relieved of the responsibility to collect and remit Arizona use

tax due on sales of tangible personal property to the permit holder. (See TPP 00-3, for the proper use of

exemption certiﬁ cates). The permit holder is liable for accruing and remitting the applicable Arizona use

tax to the Department. The Department will publish a list of Use Tax Direct Payment Permit holders

and their TPT license number on its Internet website.

The Department may revoke a direct payment permit if the permit holder does not ﬁ le a TPT-1 on time,

does not pay the use tax on time, or otherwise fails to comply with the Transaction Privilege and Use Tax

Laws.

If you have questions, you may contact the Arizona Department of Revenue, License & Registration

Section, 1600 W Monroe, Phoenix AZ 85007-2650. Phone number is (602) 542-4576. Information can

also be obtained from the Internet at

Line by Line Instructions

Enter your business’s Federal Employer Identiﬁ cation Number (FEIN).

Enter your business’s Arizona Transaction Privilege Tax License number. A separate application must

be completed for each TPT license number.

Enter the Legal Business Name for which a Direct Payment Permit is requested.

Enter the Trade Name (DBA Name) for which a Direct Payment Permit is requested.

Enter the physical address for your business in Arizona. For multiple locations that use the same TPT

license number, attach a sheet and list the trade names and business locations in Arizona.

Enter the mailing address to which all correspondence regarding the Direct Payment Permit should be

mailed.

Describe the type of business you operate.

Enter the amount of the preceding calendar year purchases of tangible personal property made by

your business.

Select the principal reason for requesting a Direct Payment Permit and give a speciﬁ c example that

supports your reason.

Sign and date the application. This application must be signed by one of the following: an owner, partner,

corporate ofﬁ cer, or association member. Print your name, title and phone number where you can be

contacted if we have questions regarding your application. Mail your completed application to the Arizona

Department of Revenue, License & Registration Section, 1600 W Monroe, Phoenix AZ 85007-2650.

ADOR 60-5405 (11/02)

Form 60-5405 - Application For Direct Payment Permit For Use Tax On Tangible Personal Property - Line By Line Instructions