TPT Updates--December 2022
TPT RENEWAL COUNTDOWN
The Arizona Department of Revenue (ADOR) prompts businesses to renew their Arizona Transaction Privilege Tax (TPT) license before January 1. If a taxpayer sells a product or engages in a business activity subject to TPT, the business must renew their TPT License annually.
Renewal Due Date
Renewals are due January 1, 2023. Penalties will apply to renewals received after January 31, 2023.
Unrenewed license will not be canceled.
To cancel your existing TPT license, use the Account Update option on AZTaxes.gov or submit a Business Account Update form with a cancel effective date.
Failure to renew, or renewals received after January 31, will be deemed late and will incur penalties, and/or late fees.
Remote sellers and marketplace facilitators without a physical presence in Arizona must renew their TPT licenses if they have more than $100,000 in gross sales to Arizona customers in the current calendar year. If a remote seller or marketplace facilitator has not reached the applicable threshold in the current calendar year, they may cancel their
license. If the threshold was met in the current calendar year but will not be met in the new calendar year, the business may consider canceling their TPT license for 2023. Unrenewed licenses will not be canceled.
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.
For more common questions, see the FAQ portion of the Renewing a TPT License page.
PROPERTY MANAGEMENT COMPANIES
The For Property Management Companies (PMC) page enhances customer experience and guidance. The page includes helpful tips and new resources.
The How to File and Pay TPT Returns for PMCs tutorial displays each step of the process to properly file and pay for the engaged property owners.
The Annual PMC Renewal Checklist instructs PMCs how to complete all the necessary steps to renew for engaged property owners before January 1 each year.
Renewal
Renewals are due January 1 and are considered late by January 31. Please see the Annual Renewal Checklist for assistance.
To figure out renewal fees, please refer to Renewal License Fees Worksheet on AZDOR.gov. Renewal fees are by jurisdiction, not by number of locations. *Please note: The residential rental renewal fee for Chandler, Phoenix, and Scottsdale is $2 per unit, up to a maximum of $50 per license.
Examples:
If a taxpayer had three retail businesses in Scottsdale, they would only be charged $50.
If a taxpayer had three retail businesses in Chandler, they would only be charged $2.
If a property owner had three properties in Scottsdale, renewal fee is $6 ($2 x 3). With 100 properties in Scottsdale, the renewal fee is $50 because there is a maximum charge of $50 per license.
If your property owner had three properties in Chandler, renewal fee is $6 ($2 x 3). With 100 properties in Chandler, the renewal fee is $50 because there is a maximum charge of $50 per license.
CONSTRUCTION CONTRACTING
The Arizona Department of Revenue provides resources and webpages to assist contractors. The agency is continuously improving and innovating its website to provide quick guidance to taxpayers.
Taxpayers will find definitions, insight into speculative builders, and key differences between Maintenance, Repair, Replacement and Alteration (MRRA) and Modification.
We encourage contractors to visit the Contracting Guidelines pages and explore the information.
FORM TPT-EZ MAILING DISCONTINUED
The Arizona Department of Revenue does not mail paper TPT returns to customers. Annual filers will not receive prepopulated Form TPT-EZ, and must file and pay at AZTaxes.gov or print the form at azdor.gov.
TPT ACCOUNT UPDATES
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. This includes if the location moved.
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.
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.
- Tax Rate: Use the correct tax rate for the business activity and jurisdiction. When an incorrect rate is used, it could cause a balance due on your account. View the Tax Rate Tables available on AZDOR.gov monthly.
- Accounting Credit: Only available to those that file and pay their returns by the established due dates.
- Deduction Codes: Ensure the deduction code being reported is applicable to the business classification; and the totals entered in the transaction detail tables equal the totals entered into the corresponding Schedule A. 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 November TPT filing deadlines:
- December 20 - TPT return due date
- December 29 - Paper returns must be received by ADOR by 5:00 p.m. on this date
- December 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 (December 27) 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
Marijuana Taxation - (Via WebEx)
Thursday, December 22, 2022
9:00 a.m. - noon
Business Tax Basics - (Via WebEx)
Thursday, January 5, 2023
9:00 a.m. - noon
Property Management Company (Via WebEx)
These workshops are offered as a series and it is recommended to take them in order. Space in each class is limited so visit the Taxpayer Education web page to sign up today.
Workshop 1: Licensing and Power of Attorney
Monday, January 9, 2023
10:00 a.m. - 11:30 a.m.
Workshop 2: Engaging, Disengaging, and More
Tuesday, January 10, 2023
10:00 a.m. -11:30 a.m.
Workshop 3: File, Pay, Amend, and More
Wednesday, January 11, 2023
10:00 a.m. -11:30 a.m.
ON-DEMAND TAX EDUCATION TUTORIALS: Please visit https://azdor.gov/taxpayer-education/tpt-tutorials.
