Marketplace Facilitators and Remote Sellers
Legislation has been signed into law by Governor Doug Ducey that will require remote sellers and marketplace facilitators that have not been collecting transaction privilege tax (TPT) under current state law to begin filing and paying TPT in Arizona starting October 1, 2019. In preparation for the October 1 implementation of the new law, the Arizona Department of Revenue (ADOR) is modifying the agency’s TPT systems and will announce in the coming weeks when license registration is open and available. Please visit: azdor.gov for updates.
Online Lodging Marketplace
An online lodging marketplace is any digital platform that provides, at a cost, an unaffiliated third party with a platform to rent lodging accommodations. Online lodging marketplaces (OLMs) are required to register to file and pay on all online lodging transactions with the department. Visit azdor.gov/transaction-privilegetax/online-lodging-marketplace for more information and to review the reporting factsheet and the taxpayer notification, TPN 19-1.
On August 1, 2019, ADOR introduced a live chat feature to its www.AZDOR.gov and www.AZTaxes.gov websites, giving Arizona taxpayers another option when seeking information about state taxes, the transaction privilege tax program or answers to a variety of questions. The pop-up application will provide customers with navigational guidance and answers to general questions.
ADOR Live Chat is currently available for inquiries, Monday through Friday from 8 a.m. to 5 p.m.
Town of Payson
The Town of Payson to reduce TPT rate by (0.12%) as a result of the repeal of the 2002 voter approved increase from the sale of Project 2003 bonds. The (0.12%) reductions are for the following rates:
Advertising (018); Amusement (012); Contracting – Prime (015); Contracting – Speculative Builders (016); Contracting – Owner Builders (037); Job Printing (010); Manufactured Buildings (027); Timbering and Other Extraction (020); Publication (009); Rental Occupancy (040); Hotels (044); Rental Leasing & Licensing for Use of TPP (214); Restaurant and Bars (011); Retail Sales (017); MRRA Amount (315); Communications (005); Transporting (006); Utilities (004).
Changes Effective October 1, 2019
City of South Tucson
On July 15, 2019, the Mayor and the Council of the City of South Tucson approved Ordinance No. 19-01 to increase the following tax rates:
Retail Sales (017) to five percent (5.0%), Communications (005) to five and one-half percent (5.5%) and Utilities (004) to five and one-half percent (5.5%).
Changes Effective October 1, 2019
City of Douglas
On July 29, 2019, the Mayor and the Council of the City of Douglas approved Ordinance No. 19-1111 to increase the Transaction Privilege Tax (TPT) to three and eight-tenths percent (3.8%) for the following rates:
Advertising (018); Amusement (012); Contracting – Prime (015); Contracting – Speculative Builders (016); Contracting – Owner Builders (037); Feed at Wholesale (116); Job Printing (010); Manufactured Buildings (027); Timbering and Other Extraction (020); Publication (009); Hotels (044); Rental, Leasing, & Licensing for Use of TPP (214); Restaurant and Bars (011); Retail Sales (017); Retail Sales Food for Home Consumption (062); MRRA Amount (315); Communications (005); Transporting (006); Utilities (004); Use Tax Purchases (029); Use Tax from Inventory (030).
Ordinance No. 19-1111 also replaced the Transaction Privilege Tax (TPT) for Retail Sales (Single Item Over $10,000) (917) with Retail Sales (Single Item Portion Over $10,000) (367). The TPT is three and eight-tenths percent (3.8%) for the first $10,000 and for amounts above the $10,000 shall be at two and eight-tenths percent (2.8%). This also added a new tiered rate for Use Tax which is Use Tax Purchases (Single Item Portion Over $10,000) (369).
Additionally, Ordinance No. 19-1111 included an increase to the Transaction Privilege Tax (TPT) for Hotel/Motel (Additional Tax) (144) to four percent (4.0%). Hotel/Motel (Additional Tax) (144).
Changes Effective September 1, 2019
TPT Filing Frequency and Due Dates
TPT filers are reminded of the following July 2019 TPT filing deadlines:
- August 20 - TPT return due date
- August 29 - Paper returns must be received by ADOR by 5 p.m. on this date
- August 30 - Electronic returns must be received by ADOR by this date
- Complete any paper returns using black ink and white paper for faster processing.
- Even if your business didn’t make any taxable sales or purchases, you still need to file your TPT return.
- The TPT and Use Tax Rate Look-Up Tool is a useful resource that helps TPT filers find TPT rates for any location within the state of Arizona.
- Remember to keep your business information up-to-date and secure with ADOR anytime there are changes by filing a Business Account Update.