On May 18, 2010, a temporary sales tax increase was approved by Arizona voters under Proposition 100. 

On June 1, 2010, a 1% sales tax increase will go into effect for the State of Arizona raising the state tax from 5.6% to 6.6%.  This tax increase will stay in effect until May 31, 2013.

The Arizona Transaction Privilege Tax is imposed on the vendor not the consumer.  If your business does not collect the additional 1% tax from your customers you will still be required to remit the proper tax to the Arizona Department of Revenue starting on the June 2010 TPT-1 which is due in July 2010.  The accounting credit will still be applicable to the State Transaction Privilege Tax and will still not apply to city, county or other taxes.  The amount of the accounting credit also remains unchanged.

The current Arizona TPT-1 form will continue to be the form required to remit Transaction Privilege Taxes and there will be no changes to the form.  If you are a quarterly filer, your activity from June 1, 2010 through June 30, 2010 will be reported on one row and your activity from April 1, 2010 through May 31, 2010 will be reported on a second row.  Annual filers will be required to remit in a similar fashion.

Additional information is available at www.azdor.gov.

 Jennifer Enck