In a recent update from the Arizona Department of Revenue (AZDOR), business owners are encouraged to take action to update their Transaction Privilege Tax (TPT) accounts and prepare for the upcoming 2024 TPT License renewal season. TPT accounts include sales tax and rental tax accounts, to name a few common types of TPT accounts.  Please see the following items to ensure your business is complying.

Update Your TPT Account

The AZDOR emphasizes the importance of maintaining accurate information in your TPT account. Several critical updates can be made through the AZTaxes.gov portal:

• Mailing Address:  Ensure your mailing address is current for transaction privilege and use tax licenses, as well as corporate and withholding accounts (for correspondence delivery).
• Add new locations or close unused ones for TPT licenses: Failing to close a location can lead to license fees upon renewal.
• Existing TPT Licenses: Cancel or close unused TPT licenses to avoid penalties for non-renewal.
• DBA Changes:  Modify your “Doing Business As” (DBA) name if necessary.
• New Additions: Add reporting jurisdictions, business codes, or rental locations.
• Corporate Officer or Owner: Ensure that owner/officer information is current for AZDOR communication.

Businesses can make these updates by logging into their AZTaxes account and navigating to the “Account Update” section. Owner/officer changes require submission through the Business Account Update form.

Annual TPT Renewals

AZDOR is gearing up for the 2024 Arizona Transaction Privilege Tax License renewal season. Starting in November, businesses will receive notifications to renew their licenses by January 1, 2024. Penalties may apply to renewals received after January 31, 2024. For e-filers, a letter and notice will be displayed on AZTaxes.gov as a reminder, while paper filers will receive a Renewal Form.

Businesses are encouraged to update and verify their account information on AZTaxes.gov before starting the renewal process to prevent additional fees and penalties. Multiple-location businesses are required to renew their TPT licenses electronically as per state law. The option to electronically renew will be available in November.

Out-of-state businesses without a physical presence in Arizona must renew their TPT licenses if they have more than $100,000 in sales to Arizona customers in the current or prior calendar year.

Property Management Companies and Rental

All owners of taxable rental property engaging property management companies (PMCs) are required to obtain a TPT license. PMC registration allows access to the AZTaxes.gov Residential Rental E-Solution for PMCs. AZDOR provides a PMC Checklist and step-by-step instructions for filing and payment.

Common TPT Filing Errors

Filing paper returns can lead to processing errors, so AZDOR strongly recommends e-filing through AZTaxes.gov for accurate and error-free submissions.  The likelihood of filing errors increases by 50% when using paper forms.

Education, Tutorials, and Training: AZDOR offers free workshops, tutorials, and resources for taxpayers. Upcoming workshops cover various tax-related topics and can be accessed online or in person.  For more information, resources, and registration for workshops, visit the Taxpayer Education section on www.azdor.gov.

In conclusion, business owners in Arizona are advised to update their TPT accounts and prepare for the 2024 TPT License renewal season. Utilizing the AZTaxes.gov portal and taking advantage of AZDOR’s educational resources can help businesses navigate the complex world of transaction privilege taxes.