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Tuesday, March 25, 2025

Arizona Department of Revenue announces key updates on transaction privilege tax

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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 issued several updates and reminders regarding the Transaction Privilege Tax (TPT) for March 2025. As spring approaches, businesses are encouraged to conduct a "spring cleaning" of their TPT accounts. This involves updating mailing addresses, closing unused locations, canceling inactive licenses, and ensuring that owner or officer information is current.

For businesses yet to renew their TPT licenses for 2025, ADOR will soon send out automatic renewal billing letters. The department advises prompt action to avoid penalties and delays in receiving new TPT license certificates.

In addition, there are upcoming changes to the waste tire fee effective April 1, 2025. The fee will increase from a maximum of $2.00 per tire to $4.66 per tire. Businesses must update their systems accordingly by this date.

The elimination of the TPT on residential rentals took effect on January 1, 2025. Property owners should cease collecting this tax for periods beginning in 2025 and ensure any liabilities before this date are settled.

ADOR also sends automated emails through AZTaxes.gov as reminders for various obligations such as filing returns or renewing licenses. These communications aim to help businesses stay compliant with tax regulations.

Several workshops are scheduled by ADOR to assist taxpayers with understanding and managing their tax responsibilities better. Topics include common errors in TPT filings and specific taxation issues related to marijuana sales and automobile dealerships.

For further details on these updates or educational resources, visit azdor.gov.

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