Arizona – Bill Addresses Sales and Use Tax Reporting Requirements

3/5/2013

SALT Report 2220 – The Arizona Senate introduced a bill that modifies the reporting requirements for transaction privilege tax payments. Current Arizona law states that TPT payments are due to the Department on a monthly basis by the 20th day of the month following the month that the taxes were accrued.  Taxpayers may file and pay those taxes on a quarterly basis if their annual liability is between $500 and $1,250 and taxpayers with an annual liability of $2,000 or less may file and pay on an annual basis.  Further, the statute states that if a business operates in Arizona for less than 30 consecutive days the Department has the authority to require that taxpayer to remit taxes on a daily, weekly, or transactional basis.

However, Senate Bill 1162 will amend the governing statute, ARS §42-5014, to reflect the following changes:

  • Any taxpayer whose estimated annual tax liability is between $2,000 and $8,000 shall be required to pay those taxes on a quarterly basis
  • Any taxpayer whose estimated annual tax liability is $2,000 or less shall be required to pay those taxes on an annual basis

The bill has passed a third reading by the House and Senate and is waiting for final approval.

For Further Information

Arizona Senate – SB 1162