Calling All Property Managers: TPT UPDATE

If you are a REALTOR® who practices property management within the state, you are all too familiar with the less than simplified Transaction Privilege Tax (TPT) process that has taken place over the last two years.

This past legislative session, Arizona REALTORS® helped pass SB 1350, which mandated the establishment of an electronically-consolidated tax return system by January 1, 2018. To ease transition to the centralization of TPT licensing and reporting, the Arizona Department of Revenue (ADOR) issued this bulletin.

For the remainder of 2016, those practicing property management are required, at a minimum, to continue to report and pay TPT in the manner in which they reported and paid the city of the residential rental in 2014. Of importance to note, some cities have already begun the transfer of collections and remittance to the ADOR; the City of Phoenix for example.

Beginning in 2017, ADOR will assume the centralized administration for licensing, reporting and paying TPT. At this time, property managers should report and pay to ADOR as they do now:

  • If you currently report all of your licensed property owners and locations to the cities on a consolidated basis, please continue doing so with ADOR, or;
  • If you currently report and pay city TPT liabilities separately by licensed property owner and location, please continue doing so with ADOR.

On November 15, 2016, the ADOR began mailing annual renewals for TPT licenses, so please be on the lookout for those notices. If there are any questions pertaining to renewing a license, please contact ADOR Problem Resolution Officer Amy Benesch at ProblemResolutionOffice@azdor.gov or by calling 602.716.6025.

Over the next year, there will be additional changes as ADOR moves towards electronic consolidation of the TPT return process. To stay up-to-date, sign up for email updates from the Department and make sure you have opted-in to receive the REALTOR® Voice for additional news as the TPT process continues to evolve.

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