TPT Updates--November 2022

TPT RENEWALS

The Arizona Department of Revenue (ADOR) is mailing renewal letters to businesses for their 2023 Arizona Transaction Privilege Tax (TPT). If a taxpayer sells a product or engages in a business activity subject to TPT, the business must renew their Arizona Transaction Privilege Tax (TPT) License annually.

The due date to renew a TPT license is January 1, 2023. A non-renewed license will not be canceled. Instead, failure to renew or renewals received after January 31 will be deemed late.

To cancel your existing TPT license, use the Account Update option on AZTaxes.gov or submit on your last TPT return with “FINAL RETURN (Cancel License)” box checked.

Out-of-state businesses without a physical presence in Arizona must renew their TPT licenses if they have more than $100,000 in sales to Arizona customers in the current calendar year.

Marijuana excise tax licenses are not required to renew, but marijuana TPT licenses must renew each year.

Renewal Fees
The renewal fee is due at the time of renewal and can be paid via AZTaxes.gov with e-check or ACH Debit if that option is already set up on the account. All fees are payable to ADOR including the license number and “2023 Renewals” on the payment.

Renew Online
State law requires taxpayers with multiple business locations to renew their TPT license electronically.

AZTaxes.gov can also be used to update business account information once the account is registered. Please allow up to four hours for the update to be completed and applied to the account. The account information must be up-to-date before the license is renewed.

How to renew your license on AZTaxes.gov

• Go to www.AZTaxes.gov.
• Log in using your username and password.
• Click “License Renewal” in the ‘Action’ section of your Business List or select “License Renewal” on the left-hand navigation bar.
  (You will need the pertinent information for renewal, any changes, payment information, and your e-signature PIN.)

 

In an effort to assist taxpayers through the process and reduce errors, ADOR offers the following guidelines.

• Businesses with more than one location will not receive a paper form, but instead must renew their licenses online.
• Licenses renewed within the current year must still be renewed.
• If you do not see the renewal option on AZTaxes, you may have not linked your user account to your TPT license or the primary user has not given you access to renew the license. See AZTaxes User Access for more information on primary and delegate users.
• Pay renewal fees online under “Pay,” then “Pay Outstanding Liabilities.” Renewal fees cannot be paid by credit card.
• If the business’ estimated annual combined TPT liability is less than $2,000, consider adjusting the filing frequency to annually. If the annual filing change is made in 2022, the change will occur for the 2023 filing period. If there are delinquencies on your business account, the filing frequency cannot be changed.

 

For further assistance on completing a license renewal through AZTaxes.gov, view our video tutorial https://youtu.be/as3OwSBU_8w.

 

PROPERTY MANAGEMENT COMPANIES

A property management company (PMC) is a business that acts on behalf of a property owner regarding rental properties. This oversight includes overseeing and managing the property, filing returns, and remitting applicable taxes to the Arizona Department of Revenue (ADOR).

ADOR has revised the For Property Management Companies (PMC) page to enhance customer experience and guidance.
The page includes compiled forms list, tutorials, and helpful tips.

The best place for a new PMC to start is with the PMC workshops offered by ADOR’s Education and Outreach team. The PMC workshops are a series of three sessions that cover all that a property manager needs to know, from how to get licensed as a PMC and obtain a Power of Attorney, to onboarding and offboarding your various property owners. To learn more about these workshops or reserve your spot, see the Education, Tutorials, and Training section below.

 

UPDATE YOUR TPT ACCOUNT NOW

Did you close a location or change the mailing address of your business?

Businesses should submit any necessary updates to ensure their account is in good standing. If the business or a location is closed, the license must be canceled or the location removed to avoid renewal requirements, as well as applicable fees and penalties.

Businesses should keep their owner/officer information current, as this is how ADOR representatives authorize callers. Owner/officer changes are submitted through the Business Account Update form.

Taxpayers can watch the Business Account Update tutorial to learn how to properly complete the paper form.

 

DEDUCTION CODES

The transaction privilege tax deduction codes are used in Schedule A of Forms TPT-2 and TPT-EZ to deduct income exempt or excluded from tax, as authorized by Arizona statute. The following laws have been enacted adding or updating these deduction codes.

A.R.S. § 42-5061(A)(14)(b) added a new deduction for heavy vehicles, semi trailers, and trailers sold to nonresidents and used in interstate commerce. Use deduction code - 810.

A.R.S. § 42-5075(B)(21) added a new deduction for the installation of containment structures. Use deduction code - 811.

A.R.S. § 42-5061(B)(14) added off-highway vehicles as exempt agricultural equipment. To qualify, it must be modified to function as a tractor, or other farm implement, and used in commercial agricultural production. Use existing deduction code for agricultural equipment - 585.

For a list of deduction codes, see: https://azdor.gov/transaction-privilege-tax/deduction-codes. Make sure you are claiming the correct deduction codes on your TPT return.

The following links may provide answers to general questions:

Transaction Privilege Tax (Sales)

• Contracting Guidelines and Forms
• Online Lodging Marketplace
• Nonprofits
• Vehicle Sales
• Marijuana
• Remote Sellers
• Peer to Peer Car Rental

 

Questions? Contact [email protected] (please include a name, phone number, and a detailed description of your question).

 

TPT FILING FACTS

• Payment Voucher: You must mail a TPT-V (voucher) with your paper check when submitting a payment for an e-filed TPT return or late TPT return.
• AZ Tax Rate Look Up Tool: On the AZTaxes.gov website is a resource that can be used to find the transaction privilege tax rates for any location within the State of Arizona. Use the physical address or the zip code, or if it is unknown, the Map Locator link can be used to find the location. Select the appropriate business description and the state/county and city (if applicable) transaction privilege tax rates along with the business codes needed to report your transaction will be displayed.
• TPT Return Without Payment: Sending returns without payment generates a bill. ADOR recommends sending returns with all applicable fees/payments to avoid receiving a bill.
• Deduction Codes: Every deduction taken must have a deduction code. Deductions reported with an incorrect or missing deduction code will be disallowed and penalties and interest may apply.

 

TAX CHANGES

City of Casa Grande - Effective date of December 1, 2022.

The Mayor and City Council of the City of Casa Grande passed and adopted Ordinance 1397.08.31 on September 6, 2022, which increases the additional tax on transient lodging tax from two percent (2.0%) to five percent (5.0%).

The (5.0%) affects the following business classifications:
Hotel/Motel (Additional Tax) (144).

 

Town of Marana - Effective date of December 1, 2022.

On September 20, 2022, the Town of Marana passed and adopted Ordinance 2022.015, which will decrease the tax rate on the sale of manufactured buildings from 2.5% to 2.0%.

The (2.0%) affects the following business classifications:
Manufactured Buildings (027).

 

DUE DATE REMINDERS

TPT Filing Frequency and Due Dates*- Monthly

TPT filers are reminded of the following October TPT filing deadlines:

• November 21 - TPT return due date
• November 29 - Paper returns must be received by ADOR by 5:00 p.m. on this date
• November 30 - Electronic returns must be received by ADOR by 5:00 p.m. on this date

* The electronic due date for TPT return is dependent on the return and payment being timely and filed electronically. It is highly encouraged to pay three business days prior to the last business day of the month (November 25) to ensure your payment is accepted and processed into ADOR systems.

 

EDUCATION, TUTORIALS AND TRAINING

All ADOR workshops are free of charge. Below are upcoming options available to taxpayers. To register or access online workshops, tutorials and resources, visit azdor.gov/taxpayer-education.

 

WORKSHOPS

Business Tax Basics - (Via WebEx)
Wednesday, November 16, 2022
1:00 p.m. - 4:00 p.m.

Wednesday, December 8, 2022
9:00 a.m. - noon

Wednesday, December 14, 2022
1:00 p.m. - 4:00 p.m.

Automobile Dealer Business - (Via WebEx)
Wednesday, November 30, 2022
1:00 p.m. - 4:00 p.m.

Property Owner Basics (In-Person)
City of Peoria
Peoria City Hall
Wednesday, November 16, 2022
1:00 p.m. - 3:00 p.m.

Property Owner Basics (Via WebEx)
Thursday, December 1, 2022
9:00 a.m. - noon

 

ON-DEMAND TAX EDUCATION TUTORIALS: Please visit https://azdor.gov/taxpayer-education/tpt-tutorials.