Phoenix CPAs | Sales Tax Changes
With the beginning of 2015, a few new sales tax laws went into effect.
Filing Frequency – If your business has an annual sales tax liability less than $2,000, you may now file your sales tax annually. Any business with an annual liability between $2,000 and $8,000 may file and pay quarterly.
Tax Form Due Dates – Businesses that elect to file their sales tax forms by mail must have the report to the Department of Revenue on or before the 2nd to last business day of the month. The form will be considered late if it is received after the 2nd to last business day of the month, regardless of postmark. This also includes hand delivered forms.
Audits – All audits will be conducted by state trained staff and will include all cities in which you conduct business. No cities will conduct sales tax audits.
Standardized Business Codes – There will be one list of business codes for all cities and the state. If you file under the retail classification at the state level, you will now file under business code 17 for all cities in which you conduct business.
Standardized Deduction Codes – There will be one list of deduction codes for all cities and the state. Codes 888 and 999 may no longer be used. Use of these deduction codes will be not allowed and you may be subject to penalties/interest. Here is a list of the deduction codes http://www.azdor.gov/LinkClick.aspx?fileticket=86FouzD-NtQ%3d&tabid=338.
Retail Sales to Out of State – Sales to a nonresident of tangible personal property (other than a motor vehicle) shipped to a location outside of Arizona for use outside the state, are subject to sales tax at the seller’s business location. This also applies to sales of tangible personal property (other than a motor vehicle) shipped to a foreign country.
Prime Contracting – Non-construction, or service contractors, are exempted from prime contracting at both the state and city level. Contractors who only enter into contracts with owners of real property to maintain, repair, replace, or alter their property will be subject to tax at the point of purchase on the building materials used in those projects. Contractors who only enter into contracts with owners of real property are not required to obtain or renew TPT licenses. More information is available here http://www.azdor.gov/LinkClick.aspx?fileticket=HwBindIeIH4%3d&tabid=338.
If you have any questions, don’t hesitate to contact us at Dusseau & Makris, PC, your Phoenix CPA.