Increased Funding for Arizona Municipalities Under Arizona Department of Revenue’s Transaction Privilege Tax 2017 Distribution
It was a successful 2017 for 91 Arizona municipalities under the Arizona Department of Revenue’s (ADOR) transaction privilege tax (TPT) program.
In 2017, more than $2.7 billion in municipal TPT was collected and distributed to the participating cities and towns for local programs and services by ADOR.
The 14 cities that joined the TPT’s single point of administration and collection of business taxes in 2017 received in excess of $1.9 billion, a 6.3 percent increase from expectations at the start of last year.
“The transaction privilege tax program benefits both Arizona businesses and the communities they operate in,” said Arizona Department of Revenue Director David Briant. “Through TPT’s single point of sales tax administration and collection, the Agency delivered increased funds for participating cities and towns and their residents.”
TPT is a gross receipts tax levied on businesses by the State of Arizona for the privilege of conducting business in the state.
Prior to transaction privilege tax simplification, businesses had to file two or more TPT returns, one with ADOR and another with the city or cities where the taxable activity occurred, whereas now they need to only file one return with the state for all taxing jurisdictions. In addition to collecting TPT payments, the Department of Revenue oversees all licensing and administering of the privilege tax, saving participating cities the cost of more than a hundred staff positions.