TPT Simplification

Many business owners have been hearing the phrase “TPT Simplification” lately.  TPT Simplification is a set of changes crafted by the state to simplify the process by which businesses report and pay transaction privilege taxes.  In 2012, Governor Jan Brewer established a task force to draft recommendations for changes to state law.  Most of these changes were included in two bills that were passed and signed into law in the past year.

  One major element of TPT Simplification will impact all businesses that are subject to transaction privilege tax:  effective with tax periods beginning January 1, 2015, privilege taxes for all cities and towns will be filed with, and paid to, the Arizona Department of Revenue.  This will include the eighteen “non-program” cities, such as Tucson, which had previously received tax returns and payments for city privilege taxes directly.  There will also be important changes to how construction contracting and related trades are taxed, as well as changes to the process of applying for, paying for, and renewing privilege tax licenses.

 

IMPORTANT:  Do NOT file Tucson city privilege taxes with the Arizona Department of Revenue at this time.  Continue to file and remit your Tucson city privilege taxes with the City of Tucson Revenue Division through and including the tax period ending December 31, 2014.

 

We have provided links below for you to read summary and full text versions of both of the bills mentioned above.  We are also working on an FAQ—a list of answers to the questions that city taxpayers will have regarding the coming changes.  After that, we plan to update our site as often as information becomes available about this transition and how it will affect your businesses.  It is our goal to make this simplification as simple for you as we can!

HB 2111 Summary                                         HB 2111 Full Text

HB 2389 Summary                                         HB 2389 Full Text

 

To see any news or information posted by the Arizona Department of Revenue, here are links to the main ADOR website, as well as the link to their on-line tax and license system.  The main ADOR website also has contact information for their offices.

 Arizona Department of Revenue                    AZtaxes.gov

 

The following link is on the Arizona Department of Revenue website, and contains all of the information included in the flyer being mailed with the June 2014 paper tax returns issued by the Department of Revenue and by the City of Tucson:

Transaction Privilege Tax Changes Are Coming!