The Arizona Department of Revenue (ADOR) and Arizona’s cities continue to work towards the simplification of transaction privilege tax (TPT) reporting. However, Arizona announced that due to the complexity in incorporating the City’s requirements into the Department’s information technology system, ADOR will NOT be the single point of licensing, filing and payment of all TPT on January 1, 2016, as originally planned.
So for 2016, taxpayers will continue to file transaction privilege taxes to the state and most municipalities as they do today. Sedona will become a Program City as of January 1, 2016 (Program Cities are the cities for which the ADOR licenses and collects TPT). Taxpayers located in Sedona will report and pay their TPT to the State. The cities of Apache Junction, Avondale, Chandler, Douglas, Flagstaﬀ, Glendale, Mesa, Nogales, Peoria, Phoenix, Prescott, Scottsdale, Tempe, and Tucson will continue to administer their own privilege taxes through the 2016 calendar year.
As one step in the transition to the new reporting system, Arizona is requiring all State TPT taxpayers to renew their licenses with the Arizona Department of Revenue and to continue to renew their licenses with the appropriate City.
Information related to Transaction Privilege Tax License Renewal
Every business licensed with the ADOR is required to renew their Arizona Transaction Privilege Tax (TPT) license. The TPT license is valid for one calendar year and must be renewed annually. The renewal is due by January 1. Do not send a payment to the Department because there is NO STATE RENEWAL FEE.
This year Arizona will automatically renew and mail your new TPT license certificate(s) in January of 2016. The new TPT license certificates will be generated for each business location on file and will be sent to the mailing address on file with the Department.
If there were no changes to your business, no additional action is required.
Action is required ONLY if you have any of the following:
- Cancellation – To cancel your existing TPT license, complete and submit a Business Account Update form with a cancel effective date. This will ensure your account history remains in good standing.
- No Fee Change(s) – To update Owners, Officers, Members and mailing address information, complete and submit a Business Account Update form with the correct information.
- Fee Change(s) – The following changes to a TPT license are subject to a fee of $12 per location for the State license and any applicable City license fees. Submission of a Business Account Update form is also required:
- Change to Business or DBA name
- Change to the business location address
- The addition of a new reporting jurisdiction (City)
- The addition of a new business or rental location
You can locate the Business Account Update Form at the following AZDOR hyperlink: Business Account Update form
If you have any questions, contact Arizona Department of Revenue by phone at (602) 255-3381 or toll free at (800) 352-4090, or for additional information, check the ADOR website here.
By Melinda Nelson, CPA