Arizona’s long-delayed centralized reporting for all transaction privileges taxes (TPT) is finally taking effect for reporting periods beginning on or after June 1.
Legislation first adopted in 2012 required the Arizona Department of Revenue (the Department) to establish a central online portal where taxpayers could elect to report city sales taxes for cities whose sales taxes are not administered and collected by the Department. The portal is to constitute a single point of contact where taxpayers may obtain all necessary state and city tax licenses, file a single return for state, county, and city taxes and pay all state, county, and city sales taxes. Centralized reporting was statutorily required to take effect on January 1, 2015, but was delayed due to various programming complexities.
On July 1, centralized reporting will finally take effect.
To implement centralized reporting, the Department is releasing two new forms taxpayers must use to report TPT for reporting periods beginning on or after June 1:
- TPT-EZ: This form should be used by taxpayers with a single location or operating in a single jurisdiction
- TPT-2: This form is for taxpayers with multiple locations or jurisdictions
The new forms are available on Department’s website. The current form, TPT-1, will no longer be accepted by the Department (although taxpayers should still use this form when reporting TPT for any period that began prior to June 1).
Additionally, businesses with more than one physical location are required to file their tax returns electronically through the Department’s TPT portal, www.aztaxes.gov. Please note that the portal will be unavailable from June 30 at 5 p.m. through July 5 at 8 a.m. for maintenance related to these reforms.
The centralized reporting portal will replace Arizona’s convoluted current system for reporting city-level TPT. Under the current system, municipalities were divided into “program” cities (those whose TPT was administered by the Department) and “non-program” cities (those who independently administered their TPT). Taxpayers were to report all state, county, and program city TPT to the Department, but were required to file separate returns with each non-program city. Now, taxpayers will file just one return with the Department for all their TPT taxes.
For additional information, please visit the Department of Revenue’s website.