SALT Report 1336 – The Arizona Department of Revenue has updated their Business Basics guide. The publication is designed to help businesses comply with the state’s transaction privilege tax and licensing requirements. In addition to describing the types of licenses and taxes that are applicable in Arizona, other agencies that impose taxes and require licensing are identified.
Transaction Privilege Tax
TPT is imposed on the seller for doing business in the state, although the tax may be passed on to the customer. Various business activities are subject to transaction privilege tax and must be licensed. A transaction privilege tax license must be issued for each location at which business is conducted. Businesses with multiple locations or business lines can elect to license and report for each location separately or have a consolidated license. Use the Arizona Joint Tax Application to apply for your transaction privilege tax license.
All businesses are required to report on a monthly basis, unless specifically authorized to report less frequently by the Department of Revenue. Businesses with an annual tax liability between $500 and $1,250 may be permitted to report on a quarterly basis; those with an annual tax liability of $500 or less may be permitted to report annually.
Estimated transaction privilege taxes must be paid each June by all businesses with an annual tax liability of $100,000 or more.
Changes That Affect the Transaction Privilege Tax License
- Changes in ownership require a new license because licenses are not transferable. Use the Arizona Joint Tax Application to apply for a new license if your business changes from a sole proprietorship to a partnership or corporation, or undergoes a similar change in organization.
- Changes in location or business location do not require a new transaction privilege license number. When locations are added or there are changes in the business name (or DBA) the license number does not change; however, a new license is printed showing the updated information.
- Other business changes that should be reported to the Department of Revenue include changes in the mailing address or location of audit records, requests to suspend licenses when the business plans to temporarily cease operations, and requests to change filing frequency.