Transaction Privilege Tax Changes and News – From Arizona Department of Revenue Website
2022 TPT LICENSE RENEWALS
A transaction privilege tax license is used for collection and remittance of state, county and city taxes. Businesses licensed with ADOR were required to renew their TPT license by January 1, 2022. If you have not already done so, visit Arizona Department of Revenue for details.
Once a business has renewed their TPT license and paid the license in full, the information is validated and the new TPT license certificates are then generated and sent to the mailing address on file with ADOR.
2022 TPT LICENSE RENEWALS
If your business closes, you must cancel your TPT license to avoid fees and penalties. Read more on ADOR website here.
BOND FOR CONTRACTORS
New contractors, out-of-state contractors without a principal business location in Arizona, and contractors who have displayed a history of TPT noncompliance are generally required to provide a bond to the Department to ensure payment of taxes.
The agency is continuously improving and innovating its websites to provide quick guidance to taxpayers.
The dedicated webpage for bonds offer general information on bonding requirements, licensing, exemption certificates, and frequently asked questions.
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).
Town of Taylor – Effective date of April 1, 2022.
On January 6, 2022, the Town of Taylor passed and adopted Ordinance O2022-01, which will increase
the transaction privilege tax rate from 2% to 3%. Model Option 15 is withdrawn, imposing Use Tax at
a rate of 3%. Telecommunications and Utilities rates are also increased from 0% to 3%. In addition,
Local Option DD is repealed, removing the cable television deduction and removing Local Option B to
conform to MCTC changes which were approved by the Municipal Tax Code Commission on April 1, 2019.
The (3.0%) affects the following business classifications:
Advertisement (018), Amusement (012); Contracting – Prime (015); Contracting – Speculative Builders
(016); Contracting- Owner Builder (037); 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); Retail Sales Food for Home Consumption (062); Telecommunication Services (005); Timbering and Other Extraction (020);
Transporting (006); Use Tax Purchases (029); Use Tax From Inventory (030); Utilities (004).
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).
Out-of-State Seller Rates:
Marketplace Facilitated or Remote Retail Sales (605); Marketplace Facilitators in Arizona Third
Party Sales Food For Home Consumption (606); Marketplace Facilitators in Arizona Retail Sales
(017); Marketplace Facilitators in Arizona Retail Sales Food for Home Consumption (062); Marketplace Facilitators in Arizona Third Party Sales (605); Retail Sales Food for Home Consumption (606).
• Keep your password, e-signature, and security questions in a secure location.
• A password reset is required every 90 days.
• Be prepared – e-signature PIN reset requests require 24 hours to process.
DUE DATE REMINDERS
TPT Filing Frequency and Due Dates*- Monthly, Quarterly, Annual
The downloadable 2022 printable schedule is available at azdor.gov/transaction-privilege-tax/due-dates.
TPT filers are reminded of the following January TPT filing deadlines:
• February 22 – TPT return due date
• February 25 – Paper returns must be received by ADOR by 5 p.m. on this date
• February 28 – Electronic returns must be received by ADOR by 5 p.m. on this date
- The electronic due date for TPT return is dependent on the return and payment being timely and filed electronically.
As always, please feel free to contact us should you have any questions or concerns regarding your tax situation. Stay Up To Date on taxes that affect you!! Subscribe to our Client Newsletter today to receive informative tips and updates on tax and financial changes. Follow CD Tax on Facebook!