Transaction Privilege Tax (TPT) Simplification Update
Posted Jan 08, 2015
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The Arizona Department of Revenue (ADOR) has delayed the collection of sales and use taxes for non-program cities and towns until January 1, 2016. If you are reporting and remitting sales and use tax directly to a city (such as Tucson) you will continue to do so until 2016.
License Renewals
Taxpayers must renew their sales and use tax licenses with the Arizona Department of Revenue. Most taxpayers should have received the 2015 Transaction Privilege Tax (TPT) Renewal form in November. These forms need to be return to the ADOR by January 1, 2015. There is no fee to renew the TPT license. Please note if you are adding locations for your business for which you did not initially register, there will be a $12.00 fee per each location.
Due Dates for Sales Tax Reports
Sales and use tax returns must be received by ADOR on or before the second to the last business day of the month or, if filing electronically, on the last business day of the month. It will no longer be sufficient for a return to be postmarked by the 25th of the month.
Filing Frequency
For taxpayers who have estimated annual sales and use tax liability less than $2,000 annually can request permission to report and pay sales and use tax on an annual basis. If your sales and use tax liability is between $2,000 and $8,000, you can request to be a quarterly filer. You must send in a letter to the ADOR requesting the filing frequency change and what your estimated liability will be. ADOR will send you a letter approving the filing frequency change. Continue to file your sales tax reports on a monthly basis until you receive approval from ADOR.
Standardized Business Codes and Deduction Codes
Beginning January 1, 2015, there will be one list for business codes and one list for business deductions for state/county and cities. The deduction code 888 Other City Deductions and 999 Other State Deductions will no longer be available for use. If either of these codes is used, the deduction will be disallowed and penalties and interest may apply. The list of business codes can be found at the ADOR website in the tax tables. The list of deduction codes can be found at http://bit.ly/1AzPqCv.
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