Arizona releases Pub 623 Nexus Guide

Out-of-state businesses struggle to understand the tax filing requirements in another state. To assist an out-of-state business with these questions, the Arizona Department of Revenue released Pub 623 Nexus in Arizona on its website. Pub 623 covers the main Arizona business taxes: Transaction Privilege Tax, Use Tax and Corporate income tax. In addition, it includes …

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Phoenix conforms to AZ TPT simplification rules

As you may know, as of July 1, 2016, Arizona has begun to implement their new TPT Simplification process. While some find the AZ TPT simplification process to be a headache, it has some advantages. Once all of the cities conform to the new law, taxpayers will only be required to file a single form …

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Sales Tax Audits

Unfortunately, we are all too familiar with the sales tax audits – or in Arizona, transaction privilege tax audits. The regulatory agency in question usually has an onerous list of records that they want to peruse, frequently covering a five year period, or sometimes more. Arizona has also been known to misplace filed sales tax …

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AZ Introduces New TPT Reporting Forms TPT-2 and TPT-EZ

The Arizona Department of Revenue will be issuing new TPT (transaction privilege tax) forms this summer as part of the ongoing process towards TPT reporting simplification. ADOR announced the creation of two new TPT forms, TPT-2 and TPT-EZ. If you have one location and receive pre-printed TPT forms in the mail from the Department, you …

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Internet Sales Can Be Taxing

Earlier this month, South Dakota lawmakers put into effect a tax on out-of-state online retailers that now requires them to collect state sales tax from customers on internet sales. The law affects those retailers who have done business in the state to the tune of $100,000+ or 400 transactions or more. I know what you …

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City of Phoenix Transit Tax Increases Sales Tax Rate

In late August, 2015, Phoenix, Arizona voters approved Proposition 104 to increase the city sales tax from .04% to .07% effective January 1, 2016 for 35 years. The current Phoenix sales tax rate (or transaction privilege tax rate) of 8.3% will rise to 8.6%. The additional revenue will be used to fund existing bus service, …

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Do you own an Arizona Rental House? Get Ready to be Licensed

The Arizona Department of Revenue (ADOR) and Arizona cities are changing the rules for owners of residential rental properties. By 2016, all property owners who meet the licensing requirements will be required to be licensed and to individually file sales tax returns (transaction privilege tax). Licensing requirements for residential rentals are available on the ADOR …

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Exempt Organizations and Sales Tax

In Arizona, entities are required to pay a “transaction privilege tax” on sales of goods, most commonly referred to as a “sales tax.” However, under certain circumstances, entities are exempt from collecting and remitting this tax. If your entity is recognized by the IRS as a non-profit charitable organization under IRC Code section 501(c)(3), retail …

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Arizona Legislature Assists Repair, Installation and Maintenance Businesses with TPT Relief

Repair, installation and maintenance companies in Arizona have often been classified as contractors for purposes of transaction privilege tax (TPT).  While this allowed them to purchase supplies tax-free, it subjected them to the standard 30% contractor deduction for labor, regardless of actual labor cost. Now there’s relief. Arizona Governor Brewer signed into law H2535 which …

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