TPT ACCOUNT UPDATES

The Arizona Department of Revenue (ADOR) encourages transaction privilege tax (TPT) taxpayers to ensure their account information is up to date. AZTaxes.gov enables registered businesses to update their accounts, but they must have an e-signature PIN to make changes.

On AZTaxes.gov, taxpayers can do the following:

• Change their mailing address on corporate, withholding, and transaction privilege and use tax licenses.
• Add, edit, and/or close locations for TPT licenses.
• Cancel or close an existing TPT license or single location on a TPT license.
• Close an account for withholding or TPT licenses.
• Make changes to “Doing Business As” (DBA) name or the business mailing address.
• Add a new reporting jurisdiction, business code, or business or rental location.

 

To update the primary user, taxpayers can also download and submit a Business Account Update Form to ADOR.

 

MARIJUANA BUSINESSES

Adult use marijuana dispensaries must remit TPT and marijuana excise tax (MET) to ADOR. Marijuana establishments are liable for retail TPT and MET on adult use marijuana products immediately upon being licensed by the Arizona Department of Health Services to make such sales to Arizona consumers.

ADOR wants to provide best practices and tips to comply properly.

• For quick payments, businesses can pay TPT liability on AZTaxes.gov under the “Make a Payment” link. For excise tax, you must log into your account to make a payment.
• File and pay your excise tax with your MET-1, not with your TPT as excess tax (additional tax).
• To protect the safety for all parties involved and to expedite the process, the marijuana excise tax should be paid online via AZTaxes.gov.
• When filing an electronic MET-1, be sure that all inventories reported for this product type are reported using the same unit of measurement (i.e. grams, ounces, pounds). “Each” is not an acceptable unit of measure as “each” item contains a varying amount of THC.
• File and pay for the proper filing period and amend if a correction needs to be made.
• Businesses must file and pay beginning with the start date of their business. If you have delinquent returns, file as soon as possible to avoid further penalties.

 

If you have questions about filing or paying, contact [email protected].

 

TPT TAX TIPS

• When filing on AZTaxes.gov, you receive a confirmation number and acknowledgement that ADOR received your return and payment.
• Avoid the hassle of mailing your return and payment by filing online. Reduces paper, postage, and time.
• Only use black ink on white paper to file a return. Permanent marker is too thick to read and interpret your
  handwriting.
• Only send one return per envelope.
• If you have more than one location, you are required to file electronically. Businesses with an annual TPT and use tax liability of $500 or more during the prior calendar year are required to file and pay electronically. Failure to comply with the electronic filing and payment requirements may result in penalties.
• Even if you had no sales and/or tax due for the filing period, you must still file a $0 TPT return by checking the “No Gross Receipts” box.

 

TAX CHANGES

City of Globe - Effective date of August 1, 2022.

On May 24, 2022, the City of Globe passed and adopted Ordinance No. 880, which increases the transaction privilege tax rate from two and three-tenths percent (2.30%) to three and three-tenths percent (3.30%).

The (3.30%) affects the following business classifications:
Advertising (018); Amusements (012); Communications (005); Contracting - Prime (015); Construction Contracting - Speculative Builders (016); Construction Contracting - Owner Builders (037); Hotels (044); Job Printing (010); Manufactured Buildings (027); MRRA Amount (315); Publication (009); Rental Leasing & Licensing for Use of TPP (214); Restaurant and Bars (011); Retail Sales (017); Timbering and Other Extraction (020); Transporting (006); Utilities (004); Use Tax Purchases (029); Use Tax from Inventory (030).

Marijuana Rates:
Adult Use Marijuana Restaurant (421); Adult Use Marijuana Retail Sales (420); Medical Marijuana Restaurant (221); Medical Marijuana Retail Sales (203); Retail Sales (Accessories and Ancillary Products) (017); Use Tax Purchases (029); Use Tax from Inventory (030).

Remote Seller Rates:
Marketplace Facilitated or Remote Retail Sales (605); Marketplace Facilitators in Arizona Retail Sales (017); Marketplace Facilitators in Arizona Third Party Sales (605).

 

City of Sedona - Effective date of March 1, 2028.

On November 9, 2021, the City of Sedona passed Ordinance 2021-09, amending sections of the City Tax Code. The transaction privilege tax is permanently increased to three and one-half percent (3.5%) effective March 1, 2028 when the temporary increase was set to expire.

The (3.5%) affects the following business classifications:
Amusement (012); Communications (005);Contracting - Prime (015); Contracting - Speculative Builders (016); Contracting - Owner Builder (037); Commercial Rental and Leasing (213); Hotels (044); Hotel/Motel (Additional Tax) (144); Job Printing (010); Manufactured Buildings (027); MRRA Amount (315); Publication (009); Rental Leasing & Licensing for Use of TPP (214); Restaurant and Bars (011); Retail Sales (017); Timbering and Other Extraction (020); Transporting (006); Utilities (004).

 

DUE DATE REMINDERS

TPT Filing Frequency and Due Dates*- Monthly

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

• August 22 - TPT return due date
• August 30- Paper returns must be received by ADOR by 5:00 p.m. on this date
• August 31 - 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 (August 26) 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

Business Tax Basics - (In-person)
Town of Gilbert
Tuesday, August 16, 2022
9:00 a.m. - noon

City of Peoria
Thursday, September 8, 2022
8:00 a.m. - 11:00 a.m.

 

Business Tax Basics - (Via WebEx)
Wednesday, August 17, 2022
1:00 p.m. - 4:00 p.m.

Wednesday, September 7, 2022
9:00 a.m. - noon

Automobile Dealer Business - (Via WebEx)
Tuesday, August 16, 2022
9:00 a.m. - noon

Property Owner (In-Person)
Town of Gilbert
Tuesday, August 16, 2022
1:00 p.m. - 4:00 p.m.

Property Management Company Workshop - (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 & Power of Attorney
Monday, September 12, 2022
10:00 a.m. - 11:30 a.m.

Workshop 2: Engaging, Disengaging & More
Tuesday, September 13, 2022
10:00 a.m. - 11:30 a.m.

Workshop 3: File, Pay, Amend & More
Wednesday, September 14, 2022
10:00 a.m. - 11:30 a.m.

 

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