New TPT e-file program starts January 1, 2018
If you are a REALTOR® who practices property management, you are all too familiar with the hassle of collecting and remitting Rental Transaction Privilege Tax (TPT) to the Arizona Department of Revenue.
The Arizona Department of Revenue will have a new TPT electronic filing program in place for property management companies (PMCs) by the start of 2018. PMCs will be able to begin licensing to participate in the new program after November 1, 2017.
Find out more by attending FREE classes on October 26 and 27.
Over the years, REALTORS® have been faced with bureaucratic hurdles and roadblocks, but the Arizona REALTORS® state association has been there every-step-of-the-way to defend members’ interests at the state capitol and Arizona Department of Revenue (ADOR).
In 2014, ADOR attempted to require all homeowners be licensed with the department by January 1, 2015. The department also compounded the collection and remittance process by changing course to no longer allow property managers to remit taxes on behalf of their clients.
Acknowledging that both the licensing timeline and prohibition on tax remittance by a property manager was entirely unrealistic, Arizona REALTORS® worked to have the licensure requirement pushed back a year, and obtained a full reversal that allowed property managers to continue to collect and remit Rental Transaction Privilege Taxes (TPT).
Recognizing that the remittance process remained cumbersome, the state association attempted to run legislation in 2015 that would require a municipality that levies Rental TPT to allow property managers to file a consolidated tax return on behalf of their clients.
Though the legislation had almost unanimous bipartisan support, ADOR asserted that the cost to implement a consolidated tax program would cost more than $4.0 million. As a result, the legislation did not make it to the finish line.
During the legislative interim, the Arizona REALTORS® Government Affairs Department worked hard to educate members of the legislature and the governor’s office on the crucial need to implement an electronic consolidated tax return for use by property managers.
Through the association’s hard work, the bill sailed through the legislature and was signed into law in 2016. The law specifically mandated the establishment of an electronic, consolidated tax-return system to be in place by January 1, 2018. So, the time for this program to take effect will soon be upon us.
You can get a jump start by participating in one of two free Transaction Privilege Tax Workshops for Property Managers on Oct. 26 in Glendale, or Oct. 27 in Chandler.Tags: ADOR, Arizona Department of Revenue, department of revenue, tax-return system, tpt, transaction privilege tax