Arizona Sales Tax Filing Changes, January 2015
- Jun 25, 2014 | Gail Cole
The Arizona Department of Revenue (DOR) has published information on the transaction privilege tax filing changes set to take effect January 1, 2015. On that date, the DOR will become “the single point of administration and collection of State, county and municipal transaction privilege tax (TPT).” It’s a big deal.
Right now, eighteen cities in Arizona administer their own taxes. These are: Apache Junction, Avondale, Bullhead City, Chandler, Douglas, Flagstaff, Glendale, Mesa, Nogales, Peoria, Phoenix, Prescott, Scottsdale, Sedona, Somerton, Tempe, Tucson, and Willcox. The state administers TPT for the remaining 73 cities.
Currently, businesses collecting TPT in multiple cities in Arizona may be required to file multiple TPT returns—up to nineteen different forms, in fact. Beginning January 2015, businesses remitting TPT in Arizona “will be reporting and paying TPT for all jurisdictions to the Department of Revenue only.”
Additional changes include the following:
- All taxpayers will receive an annual renewal notice from the DOR sometime during the fall of 2014. Renewal fees may apply, to be remitted to DOR.
- TPT licenses will be valid for one calendar year.
- Businesses filing for more than one business location will be required to file electronically.
- The DOR must receive paper returns by the second to last business day of the month.
- A penalty of up to $25 may apply to businesses failing to renew city TPT licenses in a timely manner.
- The e-signature document will no longer be required when registering on AZTaxes.gov.
- Businesses with multiple locations or operating under multiple names that file consolidated tax returns will be required to pay only one municipal TPT renewal fee for each jurisdiction.
- Businesses with multiple locations or operating under multiple names that do not file consolidated tax returns will be required to pay a license renewal fee for each location in each jurisdiction.
- Businesses will be subject to one audit for all jurisdictions.
Additional information is available on the DOR TPT change notice.
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