With several changes to the Arizona Transaction Privilege Tax (TPT) for 2017, the Arizona Department of Revenue has created an interactive tutorial resource to help taxpayers through the TPT payment process. The tutorials offer step-by-step instructions on a variety of TPT related topics. New user enrollment, filing a TPT return, adding a business location, selecting a business location, making a TPT payment, and other additional tutorials are included. The new tutorials can be found at: https://www.azdor.gov/tutorials/index.html.

The rates and deduction codes for “non-program” cities has also been updated on the TPT website. Beginning January 1, 2017, all Arizona cities will be considered program cities and all transaction privilege taxes will be filed on the Arizona TPT form. The former “non-program” cities that will now be filed on the Arizona TPT in 2017 include Apache Junction, Avondale, Chandler, Douglas, Glendale, Mesa, Nogales, Peoria, Prescott, Scottsdale, Flagstaff, Tempe, and Tucson.  The business code listings and sales tax           rates for these cities can be found at: https://www.azdor.gov/TransactionPrivilegeTax(TPT)/RatesandDeductionCodes.aspx.

Updated information regarding residential rental owners and property management companies can also be found on the Arizona Department of Revenue website. Updated information on what is considered taxable rental income is also provided on the website. For 2017, taxable rental income will include:

• Charges for utilities, unless separately metered and “pass through” only
• Maid and laundry services
• Reimbursements (damages, keys, etc.) received from the tenants
• Non-refundable deposits
• Property tax paid by tenants
• Common area fees
• Rentals to churches, non-profit organizations, and all governmental agencies
• Lodging space offered in exchange for services (apartment owners are allowed one unit for manager or maintenance employees for each 50 units)
• Income received for allowing vending machines on premises

The following items are available on the ADOR website at this link:  https://www.azdor.gov/TransactionPrivilegeTax(TPT)/ReportingGuide/ResidentialRental.aspx

• An Excel Residential Rental Worksheet
• Sales tax rate tables
• TPT forms
• A Memorandum of Understanding
• Property Management Agreement Language
• General Disclosure/Representation Authorization
• TPT due date calendar

Please note that the due date for paper filed tax returns is the 20^th of the month following the reporting period. Returns are considered delinquent if not received by the second to last business day of the month following the reporting period. E-filed tax returns must be submitted to ADOR by the last business day of the month following the reporting period; payments are due the second to last business day of the month. The TPT return must be filed even if no income was received during the reporting period.

All of these changes were posted by the Arizona Department of Revenue on December 27, 2016 and will go into effect January 1, 2017. To remain up to date on changes to the Arizona Transaction Privilege Tax, subscribe to email updates at https://public.govdelivery.com/accounts/AZDOR/subscriber/new

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