HELP CENTER
ADOR 2019 TRANSACTION PRIVILEGE TAX CHANGES
January 23, 2019

The Arizona Department of Revenue’s (ADOR) program to enhance electronic filing and paying in the state is now in effect. Per enacted 2017 legislation, businesses with an annual transaction privilege tax (TPT) and use tax liability of $10,000 or more during the prior calendar year will be required to file and pay electronically starting February 2019 for the January reporting period.

E-filing and paying online is faster and more secure for taxpayers, strengthens tax fraud prevention measures and enhances the taxpayer experience. It also saves money for taxpayers because e-filing makes them eligible to receive up to a $2,000 annual reduction of tax due from the enhanced accounting credit. Taxpayers filing TPT electronically during a calendar year are able to claim an increased accounting credit from 1% to 1.2%. This increases the total calendar year credit limit from $10,000 to $12,000. The accounting credit, however, remains unchanged at 1% and a total calendar year credit of $10,000 for taxpayers who file paper TPT returns.

Please note that taxpayers required to file an electronic return will be subject to a penalty of 5% of the tax amount due for filing a paper return. The minimum penalty is $25, including filings with zero liability. Taxpayers required to pay electronically will be subject to a penalty of 5% of the amount of payment made by check or cash.

To file and pay online, a business must be registered on AZTaxes.gov and utilize ACH debit, e-check or credit card as a payment method to comply with electronic funds transfer (EFT) payment requirements. Please visit azdor.gov for more information.

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