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Comprehensive legislation intended to increase electronic filing and payment of business taxes in Arizona, officially takes effect today. House Bill 2280, which was signed into law by Governor Ducey on March 29th, 2017, augments the Arizona Department of Revenue’s mission to expand electronic filing and paying of taxes in the state.
“Among many benefits, e-filing is more secure and it’s faster to process than paper returns, which means the Department of Revenue can provide enhanced customer service for all taxpayers,” said Arizona Department of Revenue Director, David Briant. “The e-file/e-pay legislation is part of the Department’s focus of delivering a results-driven, customer-focused management system to deliver better, faster, more cost effective services for Arizonans.”
Over a multi-year phase-in period, businesses will be required to file and pay transaction privilege tax (TPT) electronically. Also under HB2280, annual electronic filing of annual corporate income tax, fiduciary, and partnership returns will begin in tax year 2020.
“Through this legislation, the State of Arizona will be collecting tax at the speed of business,” said Department of Revenue Deputy Director, Dr. Grant Nülle, who pointed out one area that requires attention is the low volumes of electronic filing and payment of business taxes.
“Thousands of businesses already file transaction privilege tax electronically, but, the overall percentage is relatively low at 31 percent and businesses currently lack the ability to e-file any corporate income, partnership and fiduciary tax returns,” Dr. Nülle said. “The phased-in approach provides the Department of Revenue time to enhance its infrastructure framework to provide an electronic filing experience for all taxpayers.”