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.
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