Heads up…this is a significant change if your a Arizona professional photographer doing business with out of state clients. For CBP this has significant impact on on several levels because the the bulk of our corporate business is shot out of state or in state for out of state clients. Hoping this is more of a opportunity than a body blow but will need more time to assess how to make lemonade out of this.
Critical TPT (Sales Tax) Changes
Beginning January 1, the Arizona Department of Revenue has made three major changes in the way Transaction Privilege Tax is being handled:
- All Arizona state TPT licenses must now be renewed annually. While there is no charge for the renewal, it is your responsibility to renew your license. If you fail to renew your license, you’ll have to file a new application and pay a new license fee. Save $12; renew that license!
- TPT Simplification has been postponed for one year. You likely received notices from both the state and your city that TPT Simplification would be occurring on January 1 and all TPT returns would be filed through a state-operated portal—this was postponed at the last minute, and for 2015, you’ll now continue filing and paying taxes as you have been.
- This is the biggie: The exemption for “out of state” sales has been eliminated. You are now responsible for TPT on all sales, no matter where the client is located. Make sure you’re reporting and remitting for all your taxable sales (i.e. everything photographers do) in 2015!
Many business owners and even some city tax offices have been caught unaware of these changes due to lack of communication from AZDOR. Please make a note of these changes and share them with your friends and colleagues!
For more details, refer to AZDOR’s TPT Simplification Update. |
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