Since January 1, 1993, the State of Arizona has required certain taxpayers to remit payments due the state by the Electronic Funds Transfer (EFT) system. Electronic funds transfer requires the taxpayer to send payments electronically rather than writing and mailing a check. It has proven to be a safe, efficient payment system that allows the State of Arizona to use techniques that banks and businesses have used for years. Payments move almost instantaneously through this system from taxpayers’ accounts into the State Treasury ensuring that payments are received by the due date.
Who Is Required To Pay Taxes Electronically?
The following criteria has been established to determine which Arizona taxpayers are required to remit their taxes electronically:
- Withholding Tax - Any taxpayer with $20,000 average quarterly liability for withholding tax during the prior tax year.
- Corporate Estimated Tax - Any corporation with $20,000 prior tax year liability.
- Transaction Privilege Tax – Any taxpayer with $1,000,000 prior tax year liability.
- Tobacco Luxury Tax – Arizona licensed distributors are required to file all required returns and pay all tax due on tobacco products other than cigarettes electronically.