Arizona’s Temporary State Tax Rate Expires

Arizona’s temporary increase in sales tax rates expires on May 31, 2013. The state’s current rate of 6.6% will decrease to 5.6% beginning June 1, 2013. The state’s current rate for transient lodging will decrease from 6.5% to 5.5%. The new tax rates will be reported to the Arizona Department of Revenue beginning with the June 2013 TPT-1 due in July 2013. For quarterly filers, activity from June 1, 2013 through June 30, 2013, will be based on the decreased rate, and activity from April 1, 2013, through May 31, 2013, will be reported on a second row. Annual filers will follow a similar set-up on their December 2013 return. The temporary tax expiration affects the following categories: utilities, communications, transporting, private (rail) car, pipeline, publication, job printing, restaurants and bars, amusement, personal property rental, contracting-prime and owner-builder, retail, transient lodging, and use tax. Categories not affected by this change include commercial lease, severance-metalliferous mining, telecommunications devices, municipal water, jet fuel use tax, and 911 telecommunications. For prime contracting contracts entered into before June 1, 2013, the lower rate applies to receipts received after June 1, 2013 for cash receipts, regardless of when the contract was entered into. For accrual taxpayers, the date the contract is signed is the determining date for the rate. The news release also contains a chart of county and state tax rates that will be effective June 1, 2013. (Transaction Privilege Tax Changes and News, Arizona Department of Revenue, June 1, 2013)

Posted on May 24, 2013