Arizona tax filing and reporting finally simplified
by November 1, 2023
Please note: This blog was originally published in 2016. It’s since been updated for accuracy and comprehensiveness.
After a couple of false starts spanning several years, Arizona is finally simplifying it’s transaction privilege tax (TPT) system. In Arizona, TPT is the equivalent of sales tax in most other states.
The state hasn’t released much hard news yet, but this post will go over what we know for now.
What do these Arizona tax changes mean for online sellers?
Changes to TPT reporting
According to a press release from the Arizona Department of Revenue, sellers will now be required to use “location-based” reporting when submitting TPT returns to ensure accurate distribution of taxes to counties, cities and other local jurisdictions. We’ll know more about this on July 5th when Arizona releases their new filing form TPT-2.
Changes to TPT filing
To accommodate these changes, the state of Arizona is releasing two new forms for Arizona filers to use. These forms should be used for filing for taxable periods on or after June 1, 2016.
TPT-EZ – Businesses with one location or jurisdiction in Arizona should use this form. (Arizona TPT-EZ instructions)
TPT-2 – This form replaces TPT-1 and is for businesses with multiple locations or jurisdictions within the state. Businesses with more than one location or jurisdiction in the state must also file Arizona TPT returns electronically.
In the past, online sellers with no physical location in the state were required to file “use tax.” It is not yet clear how these sellers should file after these updates. We plan to update here very soon with that information.
Future changes to Arizona TPT registration
If you’re familiar with Arizona, you know that in the past the state required sellers to register with the state and with each “non-program city” where the state didn’t administer tax. An out-of-state seller in Arizona may have found herself registered in 10+ different cities in Arizona.
