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Completely Compliance - Arizona TPT Simplification 2017

by DMA Staff | Jan 26, 2017
DMA_Blog_CC_Arizona_TPTSimplification2017

Arizona is implementing their tax simplification process effective January 1, 2017. The simplification process is unifying the manner in which taxpayers report and pay their Transaction Privilege Tax (TPT) through the centralization of both licensing and reporting of TPT liabilities for all Cities to the Arizona Department of Revenue.

The TPT transition to centralized reporting began in June of 2016 with the elimination of the TPT-1 form. In June, Arizona replaced the TPT-1 with the TPT-EZ and TPT-2. The TPT-EZ is a simplified tax form for businesses with one location or jurisdiction, while the TPT-2 replaces the outdated TPT-1 for use by multi-location or multi-jurisdiction businesses.

As the new reporting methods have been in place since June of 2016, the transition should be smooth for the January due February return. All reporting and remittances done for non-program cities prior to January of 2017 will now transition to the applicable TPT return. The last returns to non-program cities will take place on the upcoming December due January return.

To ensure a smooth transition, a business with a single physical location may receive a renewal form in the mail (alternatively they can renew online if they have an account). Multi-location or multi-jurisdiction businesses must renew via AZTaxes.gov. Some localities are requesting that on the December return (filed in January) or through a notice, the AZ TPT license number is listed for each location to ensure compliance before the transition takes place. Any TPT registration numbers currently active will remain unchanged and the renewal due date remains January 1.

Relatedly, registrations and renewals of locations are now centralized at the state level, and can be added or updated in the Region Code screen (using code “GE”) and the appropriate Business Codes as instructed in the State’s tutorial: "AZTaxes.gov: Step-by-Step Instructions to Completing the TPT-2-Form" or "AZTaxes.gov - Business and Region Codes".

This simplification has been a long time in the making. The enabling legislation was passed in 2012 and further refined in 2013. The original implementation date for the centralized online portal was January 1, 2015. However, the State’s computer system was not prepared to accommodate the changes, pushing the implementation back to January 1, 2016, and then again indefinably. As of today, the implementation date stands firmly at January 1, 2017.