After two years of delay, sales tax simplification will be fully implemented on January 1, 2017. The last remaining piece of simplification was activating the Arizona Department of Revenue’s web portal for centralized licensing, return filing, and payment. On November 8, the Arizona Department of Revenue published its November 2016 edition of Transaction Privilege Tax Changes and News, announcing that centralized licensing, reporting and payment for program and non-program cities will go into effect on January 1, 2017. Below are the highlights of that announcement.

Centralized Licensing, Reporting, and Payment to Start January 1, 2017

Starting with the January 2017 transaction privilege tax return (due in February 2017), the Arizona Department of Revenue will be the single point of administration and collection of state, county, and municipal transaction privilege tax for all jurisdictions.

Taxpayers will be able to file and pay through the Arizona Department of Revenue for both program and non-program cities, in addition to state and county taxes. The last return filed directly with non-program cities (i.e., cities that administer their own sales and use taxes) will be for the period ending December 2016.

Additionally, City of Phoenix taxpayers may choose to file and pay their Phoenix transaction privilege taxes on returns filed with the Arizona Department of Revenue in advance of the city’s official January 2017 transition.

The Arizona Department of Revenue will also process all annual transaction privilege tax license renewals for all jurisdictions starting this fall. Renewal notices and instructions are scheduled to be mailed in mid-November. The deadline for renewing a transaction privilege tax license is January 1, 2017.

Centralized licensing and online reporting took effect for program cities on July 1, 2016.

New Features on AZTaxes.gov

On November 7, 2016, AZTaxes.gov (the Arizona Department of Revenue’s online transaction privilege tax portal) began offering additional functionality. New features include the ability to:

  • Change the mailing address on transaction privilege and use tax licenses
  • Add, edit, and/or close locations for transaction privilege tax licensing purposes
  • Close transaction privilege tax accounts