Effective January 1, 2017, the Arizona Department of Revenue (ADOR) will become the single point of administration and collection of transaction privilege tax (TPT). The transition to centralized licensing, reporting and payment of state and city TPT to ADOR begins with the January 2017 tax return which is due in February. When filing the January 2017 TPT return in February 2017, all activity needs to be filed on a single return with ADOR regardless of where the taxable activity is located in Arizona. Previously, businesses may have filed two or more TPT returns, one with ADOR and another with the city or cities where their taxable activity occurred. It is important to note that if a business that needs to file TPT returns has an outstanding balance for tax periods prior to their January 2017 activity, those returns and payments must be filed and paid directly with the city where the business had taxable activity.
Taxpayers will experience standardized business and deduction codes across all jurisdictions. To ease with the transition to ADOR, the department has prepared deduction code bridges linking the local codes with the standardized state codes. The department also provides a list containing all the city privilege tax rates and city codes for all cities as well as a combined list of the state’s transaction privilege tax rate and the excise tax rate for all counties. ADOR is administering the TPT license renewal for all jurisdictions for calendar year 2017 and sent out notices to all affected taxpayers. Taxpayers are encouraged to register and pay online at AZTaxes.gov if they have not received their notices from the department. The due date for license renewals is January 1, 2017.
ADOR strongly encourage businesses to use AZTaxes.gov and register to file and pay online. AZTaxes.gov offers online filing and payment of TPT. Taxpayers who use AZTaxes.gov will experience greater customer convenience and other benefits, including automatic linking of tax rates and codes, auto-calculation of the return, confirmation of filed returns and the ability to view, save or print a copy of a filed return. Additionally, once registered, businesses can also update their accounts online which eliminates the need to call or mail a paper form. ADOR is constantly adding enhancements to AZTaxes.gov to increase available online services for the department.