TPT Updates--March 2020

NEWS

2020 TPT License Renewals

The Arizona Department of Revenue (ADOR) began sending letters to businesses to renew their 2020 TPT License in November 2019.  The due date to renew a TPT license was January 2020.  Failure to renew (or cancel a license) will incur penalties and/or late fees.  For more information, visit https://azdor.gov/transaction-privilege-tax/tpt-license/renewing-tpt-license.

 

ONLINE LODGING MARKETPLACE (OLM)

An online lodging marketplace is any digital platform that provides, at a cost, an unaffiliated third party with a platform to rent lodging accommodations.  Effective Jan. 1, 2019, all online lodging marketplaces (OLM) were required to register to file and pay on all online lodging transactions with the department. OLMs file by jurisdiction not by location and must file monthly pursuant to A.R.S. §42-5014 E.2.

For information on residential rental (30 or more consecutive days), hotel/transient lodging (less than 30 days), the tax base, allowable deductions, business codes, penalties for not obtaining or displaying a TPT license and other requirements, download the OLM Factsheet at https://azdor.gov/transaction-privilege-tax/online-lodging-marketplace.

 

TAX CHANGES

City of Benson
On January 27, 2020, the Mayor and Council of the City of Benson approved Ordinance #601.
Section 1: The current rate of three and one-half percent (3.5%) will extend for Advertising, Amusements, Job Printing, Manufactured Buildings, Timbering and Other Extraction, Publication, Hotels, Restaurant and Bars, Retail Sales, MRRA Amount, Communications, Transporting and Utilities with an effective date of August 1, 2022, then decrease by one percent (1.0%) on August 1, 2023.  Note:  Section 1 does not apply to contracts entered into prior to August 1, 2015.

Section 2: Reduces Retail Sales Food For Home Consumption from three and one-half percent (3.5%) to three percent (3.0%).  Note: The Section 2 change has an effective date of July 1, 2020.  
Rates that will change on the Transaction Privilege and Other Tax Rate Tables are referenced below.

(062) Retail Sales Food for Home Consumption 3.00%, (606) Retail Sales Food for Home Consumption 3.00 %.

Marketplace Facilitators with Arizona Physical Presence
(062) Marketplace Facilitators in Arizona Retail Sales Food for Home Consumption 3.00%, (606) Marketplace Facilitators in Arizona Third Party Sales Food For Home Consumption 3.00%.

 

LIVE CHAT 

New Extended Hours
The Arizona Department of Revenue (ADOR) Live Chat feature is now available from 7:00 a.m. to 6:00 p.m. (MST).  ADOR Live Chat is an option available to customers seeking information about state taxes, the transaction privilege tax program or answers to a variety of questions.  The pop-up application provides answers to general questions, offers navigational guidance and is available on the www.AZDOR.gov and www.AZTaxes.gov websites.


E-COMMERCE COMPLIANCE AND OUTREACH (ECCO) TEAM

Remote Sellers and Marketplace Facilitators that do not have a physical presence in Arizona and meet certain economic thresholds began filing and paying transaction privilege tax (TPT) in Arizona, October 1, 2019.

  • The E-Commerce Compliance and Outreach (ECCO) team was created to assist remote sellers and marketplace facilitators with licensing and filing requirements. 

  • The ECCO team also assists Arizona-based businesses that may be subject to other states’ remote seller and marketplace facilitator tax laws. 

Frequently asked questions, requirements, resource links and other information is available on the Out-of-State Sellers resource page at https://azdor.gov/transaction-privilege-tax/retail-sales-subject-tpt/out-state-sellers. 

Remote sellers, marketplace facilitators and Arizona-based businesses with questions can contact the  ECCO team by phone 833-293-7253 (833-AZeSale) or email [email protected].

 

REMINDERS

TPT Filing Frequency and Due Dates - Monthly Filers
TPT filers are reminded of the following February TPT filing deadlines:  

  • March 20 - TPT return due date
  • March 30 - Paper returns must be received by ADOR by 5 p.m. on this date
  • March 31 - Electronic returns must be received by ADOR by this date

 

FILING FACTS

E-filing helps the Arizona Department of Revenue deliver better, faster, more cost-effective government for Arizona.
In 2019, 77% of taxpayers took advantage of the benefits of electronically filing their TPT returns.  Some noted taxpayer benefits for e-filing include:

  • Faster processing
  • More secure
  • Fewer errors and miscalculations
  • The enhanced accounting credit for e-filing

 

EDUCATION, TUTORIALS AND TRAINING

ADOR makes available online tutorials on setting up AZTaxes, new user registration, understanding location codes, filing an electronic TPT return and more.  To access online tutorials and resources, visit azdor.gov/taxpayer-education.

PDF icon TPT_Updates-2003.pdf