Effective June 1, 2013, the Arizona transaction privilege tax rate, commonly referred to as sales tax, will decrease by 1% for most reporting categories. What does this mean to you?
- Collecting Taxes: Many taxpayers who charge their customers will need to decrease the percentage used to calculate the state rate by 1%. Please refer to the rate table here, http://www.azdor.gov/Portals/0/TPTRates/201306.pdf, to determine the new rate for your reporting category, if any. Several counties, including Pima County, have taxes that are combined with the state rate so it is important to verify the new rate to be used with the rate table.
- Reporting: Monthly filers will use the new rate on the reports completed in July for the June reporting period. Quarterly or Annual filers will need to report sales prior to June 1st on one row of the TPT-1 form with the old rate and sales after June 1st on a second row of the form with the new rate.
- Accounting Credit: The accounting credit will continue to be applicable and will decrease along with the rate decrease. Please refer to the new rate table for the correct percentage.
Special Note for Contractors: Taxpayers who report on a cash basis are to use the new rate for all cash receipts received after June 1, 2013, regardless of when the contract began. Taxpayers who report on an accrual basis are to use the date the contracting activity is performed for determining the rate.