TPT Update -- June 2023

TPT 2022 ELECTRONIC ANNUAL ESTIMATED TAX PAYMENT

Annual estimated tax payment of transaction privilege, telecommunications services excise, and county excise taxes are required if:

• Combined tax liability for transaction privilege, telecommunications services excise, and county excise taxes in the preceding calendar year was $4,100,000 or more, or
• If you reasonably anticipate a liability for such taxes of $4,100,000 or more in the current year.

 

Deadline

The statutory due date for the annual estimated tax payment is June 20.

• When filed electronically, the annual estimated tax payment must be received by the department no later than Friday, June 30. However, in order for the department to receive an electronic payment by Friday, June 30, that payment must be electronically submitted no later than 5:00 p.m. MST (Mountain Standard Time) on Thursday, June 29. It is highly recommend to make a payment three business days before the end of the month to ensure your payment is accepted and processed into ADOR systems.

 

How do I calculate my payment?

There are two methods available to calculate your June estimated payment:

• One half of the actual tax liability from the month of May, or
• The actual tax liability from June 1 through June 15.

 

Electronic payments

• Taxpayers required to pay electronically may be subject to penalties for payments made by check or cash.
• To file and pay online, a business must be registered on AZTaxes.gov and use ACH debit, e-check, or credit card as a payment method to comply with electronic funds transfer (EFT) payment requirements.

 

AMENDING A TPT RETURN

To amend a previously filed Form TPT-2, you must mark the “Amended Return” box on page 1. The amended return will replace the previously filed return. Complete the return with the corrected numbers only. Do not use negative numbers and do not submit a return with negative numbers to amend a prior period. Include all lines present on the original return, even if there are no changes to those lines.

An amended return that results in a refund or credit must be filed within four years of the original return due date or four years from the date the original return was filed, whichever date is later. A taxpayer may not use an amended return to change the application of a claimed estimated tax payment.

There may be times that you file your return but submit a payment at a later date. Make payments online for quicker service. Please do not submit your return again with a paper payment. Instead, include your transaction privilege tax license number, EIN, or SSN in the memo with the previous filing period to match the return.

 

ADOR AUTO-RENEWS 2023 STATE TPT LICENSES

ADOR will be sending renewal billing letters to businesses with overdue renewal fees. Renewals were due on January 1, 2023.

Taxpayers will no longer have the ability to renew on AZTaxes.gov, but can still pay the liability. Prompt compliance online can save both time and money. Taxpayers who have closed their business can cancel their existing Transaction Privilege Tax (TPT) license through AZTaxes.gov or submit a Business Account Update form with a cancel effective date. This will ensure your account remains in good standing and avoids additional penalties and interest.

Keep your mailing addresses and account information up-to-date to ensure letters, notices, and billings go to the correct address. Please note, there is a unique address for all renewal forms, correspondence, and payments:
Arizona Department of Revenue
Attn: License and Registration
PO Box 29082
Phoenix, AZ 85038-9082

Renewal forms, correspondence, or payments sent to any other address will delay processing.

As a reminder, operating without proper licensing may be a class 3 misdemeanor.

For more information, visit azdor.gov/transaction-privilege-tax/tpt-license/renewing-tpt-license.

 

GUEST CREDIT/DEBIT CARD PAYMENT OPTION

AZTaxes allows secure access for taxpayers to make individual income tax payments 24 hours a day/7 days a week. Businesses now make a transaction privilege tax (TPT)/use tax credit or debit card payment as a Guest using the Quick Links menu on the AZTaxes homepage. Businesses need to know their license number and business mailing zip code.

Businesses are not required to login to their AZTaxes account to make a quick payment. Please note: Only registered business users can make an e-check payment. Service charges may apply.

 

DEDUCTION REJECTION

TPT returns are commonly rejected or held due to deduction errors. Deductions listed in the Schedule A of the TPT return must be complete and must match the Transaction Detail deductions to be allowed. Please ensure calculations are correct and that all information has been included.

• The city or region code listed on the Transaction Detail page matches the city/region codes on the Schedule A deduction details.
• The deduction code claimed on the return is applicable to the business code reported. Deductions can only be claimed for an allowable business class activity.
• The Schedule A deduction amounts equal the amount entered on the Transaction Details page.
• The deduction code matches the deduction description on Schedule A.

If you receive a notice indicating information is missing or not matching on the return, please submit an amended return with necessary corrections. Otherwise, please pay the balance indicated on the correspondence by the due date to avoid additional penalties and interest.

Remember filing returns on AZTaxes.gov ensures these calculations are always accurate and helps avoid return errors.

For a step-by-step guide on how to complete a transaction privilege tax return, click here.

 

CUSTOMER ADVISORY ABOUT THIRD PARTY PAYMENT WEBSITES

The Arizona Department of Revenue (ADOR) advises taxpayers to only make online payments through ADOR’s official payment website, AZTaxes.gov. For card payments, AZTaxes will redirect to Point and Pay, which is an approved payment card service provider.

The Department does not sanction or accept payments through third-party bill payment services outside of Point and Pay.

ADOR does not charge a fee to make payments through e-check, but credit and debit card payments result in a processing service charge.

Ensure your payment is made through AZTaxes.gov, which accepts electronic corporate, withholding, and transaction privilege tax payments.

For tutorials on making an online payment, see our Taxpayer Education page.

 

TPT FILING FACTS

• Sending returns without payment generates a bill. ADOR recommends sending returns with all applicable fees and payments to avoid receiving a bill.
• An estimated TPT payment is due if the business’ anticipated tax liability is $4,100,000 or more in 2023.
• There are two different types of AZTaxes users: Primary and Delegate. For assistance on primary and delegate access, see: https://azdor.gov/transaction-privilege-tax/tpt-license/aztaxes-user-access.
• If your business is adding a location to an existing license, file a Business Account Update form.

ADOR is asking TPT filers to participate in a quick survey to determine common errors when filing and paying TPT. If interested in joining a focus group, complete the last question in the survey. Click this form to participate.

 

TAX CHANGES

City of Show Low - Effective date of July 1, 2023.
On May 2, 2023, the Mayor and Council of the City of Show Low passed and adopted Ordinance No. 2023-02 to amend the city’s tax code by removing Model Option 6, which thereby allows the city to establish a new Hotel/Motel Additional Tax at a rate of three percent (3.0%).

The (3.0%) affects the following business classifications:
Hotel/Motel (Additional Tax) (144).

City of Benson - Effective date of August 1, 2023.
On May 8, 2023, the City of Benson passed Ordinance 621, which continues the transaction privilege tax increase adopted by the city’s 2015 Ordinance 577. This ordinance does not increase or decrease tax rates or affect deduction codes.

City of Eloy - Effective date of August 1, 2023.
On May 8, 2023, the Mayor and Council of the City of Eloy passed and adopted Ordinance No. 23-946 amending Section 16-455 of the city tax code by decreasing the tax rate on the Restaurants and Bars classification from six percent (6.0%) to five percent (5.0%).

The (5.0%) affects the following business classifications:
Restaurants and Bars (011); Medical Marijuana Restaurant (221); Adult Use Restaurant (421).

 

DUE DATE REMINDERS

TPT Filing Frequency and Due Dates*- Monthly

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

• June 20 - TPT return due date
• June 29 - Paper returns must be received by ADOR by 5:00 p.m. on this date
• June 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 (June 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

ADOR Business Tax - (Via WebEx)
Wednesday, June 21, 2023
1:00 p.m. - 4:00 p.m.

Wednesday, July 5, 2023
9:00 a.m. - noon

ADOR Marijuana Taxation - (Via WebEx)
Thursday, June 22, 2023
9:00 a.m. - noon

Automobile Dealer Business - (Via WebEx)
Wednesday, June 28, 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, July 10, 2023
1:00 p.m. - 2:30 p.m.

Workshop 2: Engaging, Disengaging, and More
Tuesday, July 11, 2023
1:00 p.m. - 2:30 p.m.

Workshop 3: File, Pay, Amend, and More
Wednesday, July 12, 2023
1:00 p.m. - 2:30 p.m.

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