On June 29, the Arizona Department of Revenue announced upcoming changes to transaction privilege tax reporting procedures, implementing the long-delayed sales tax simplification first enacted in 2012. These changes, discussed in our June 30 Tax Alert, are to take effect July 1, for reporting periods beginning on or after June 1.

It has come to our attention that the only changes taking effect July 1 are with respect to the use of the new TPT forms and mandatory online filing for taxpayers with more than one physical location. Centralized reporting for non-program cities is not expected to take effect until this fall.

State, County, and Program City Taxes

  1. Taxpayers with a single physical location should report using new form TPT-EZ
  2. Taxpayers with multiple physical locations should report using new form TPT-2 and must file electronically at www.aztaxes.gov

Non-Program City Taxes

  1. All taxpayers must continue to report as in the past directly to non-program cities using those cities’ forms and procedures until centralized reporting takes effect, which is now estimated to take place sometime in the late fall

Please note that this distinction does not appear on the Department’s website, nor on the forms and instructions released by the Department.