Selected Professions/Business Activities


Residential/commercial interior designers that provide purchasing services to procure materials, furniture, accessories and art may be subject to transaction privilege tax/licenses(s) under the retail classification and use tax classification.

Interior projects that include new construction, renovation, historic renovation and model homes may be subject to transaction privilege tax/licenses(s) under the contracting classification. Under the tax code, a prime contractor is a person who performs, coordinates or supervises construction work, including contracting with any subcontractors. A prime contractor who only furnishes labor in the performance of contracting work is subject to the tax as well as one who furnishes both labor and materials.

The Arizona Department of Revenue publishes informational brochures regarding activities subject to state transaction privilege tax. Visit the Arizona Department of Revenue website to view/print their tax brochures. 

Arizona Department of Revenue
Publications & Brochures: 602-Retail Classification / 610-Use Tax / 603-Contracting Activities

For additional information on tax and licensing, visit the Transaction Privilege Tax (TPT)/Licensing section of our Step-by-Step Checklist program.


Construction/construction related activity may also require a contractor’s license from the Arizona Registrar of Contractors. For additional information, visit the Construction/Construction-Related Activity section of our Checklist program.


An interior design business that does not sell any product or perform any other taxable activity is considered a service business and may be subject to city/town/county licensing and compliances. Contact each city/town in which you will be based and any city/town in which you wish to conduct business regarding business compliance requirements. If your business is based and/or operates in an unincorporated region of the county, contact the county.


Additional  Information:

Interior Design Coalition of Arizona

Independent, non-profit coalition working to establish state-wide criteria for the level of competency interior design professionals must possess, including education, experience and examination.

The American Society of Interior Designers

Nonprofit professional society representing the interests of interior designers and the interior design community.


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