Jim Garrett Board Vice President | Coolidge Chamber of Commerce
Jim Garrett Board Vice President | Coolidge Chamber of Commerce
The Arizona Department of Revenue (ADOR) has announced several changes and updates to the Transaction Privilege Tax (TPT) for 2025. Businesses with a TPT license were required to renew by January 1, 2025, with penalties applicable for late renewals after January 31, 2025. Remote sellers and marketplace facilitators without a physical presence in Arizona must also renew their licenses if they had over $100,000 in gross sales to Arizona customers in 2024.
A significant change is the elimination of TPT on residential rentals effective January 1, 2025. Property owners should continue to file taxes for periods through December 31, 2024. TPT licenses exclusively for residential rental have been automatically canceled as of December 31, 2024.
Additionally, ADOR sends automated email notifications through AZTaxes.gov to remind businesses about tax obligations such as filing returns or renewing licenses. Businesses with an annual tax liability of $500 or more are required to file electronically.
In terms of tax rate changes, the Town of Gilbert has increased its general transaction tax rate from 1.5% to 2%, effective January 1, 2025. The City of Prescott will implement a dedicated TPT rate of 0.95% starting April 1, 2025.
ADOR continues to offer free workshops and tutorials for taxpayers via WebEx on various topics related to business taxes and electronic filing.
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