Transaction Privilege Tax Changes and News, November 2025

 
KEY STEPS FOR 2026 TPT LICENSE RENEWAL
 
Renew by January 1 to avoid penalties 
Electronic filing is key to reducing errors and streamlining the Transaction Privilege Tax (TPT) License renewal process. The Arizona Department of Revenue (ADOR) advises businesses to enroll, file, and pay online through AZTaxes.gov. Renewals are due January 1 and penalties will be assessed for all renewals received after January 31.
State law requires taxpayers with multiple business locations to renew their TPT license electronically. 
Before Renewing
To ensure TPT renewals go effortlessly, businesses are encouraged to take the following steps.

• Establish primary and delegate user access privileges to confirm the correct individuals can update and renew the TPT license.
• Update the account information at any time through AZTaxes.gov:
  • Change the mailing address. (Only for correspondence delivery.)
  • Add, edit, and close locations. (If a location is moved, the prior location must be closed, and the new location added to the license.)
  • Cancel an existing TPT license.
• Add new reporting jurisdictions or business codes.
• Change owner/office information by submitting these changes on the Business Account Update Form 10193.

During Renewals

• Renew all licenses – even if the business was recently licensed. 
• Check out the video tutorial on completing a license renewal on AZTaxes or the Renewing a TPT License FAQs page.
• If the renewal option is not visible within an account, check that the user account is linked to the TPT license or confirm that the primary user has granted access to renew the license. See AZTaxes User Access for more information on primary and delegate users.
• Pay renewal fees online under “Pay,” then “Pay Outstanding Liabilities.” Renewal fees cannot be paid by credit card.
• For paper renewal forms: Taxpayers who received a paper renewal form should send the payment along with the entire Renewal Form, including "2026 Renewals'' and the license number on the paper check. The form and payment must be sent together to:
  Arizona Department of Revenue
  PO BOX 29082
  Phoenix, AZ 85038-9082
  Sending to the incorrect PO Box will cause delays in processing.
• Cancelling a TPT License: Licenses that are not renewed will not be canceled. To cancel an existing TPT license, use the Account Update option on AZTaxes.gov or submit a Business Account Update form with a cancel effective date.

After Renewing

• Verify the filing frequency for 2026. TPT filing frequency is based on a business’ total estimated annual combined Arizona, county, and municipal TPT liability. If changes are made, it will take effect in the next filing period. If there are delinquencies on a business account, the filing frequency cannot be changed.
• All liabilities must be paid before January 1 to receive the license certificate and avoid penalties.

Ongoing update about filing requirements, tax rate changes, law changes, and reminders, follow ADOR on social media.
 
TPT ACCOUNT UPDATES
Did you close a location or change the mailing address of your business?
 
Businesses should submit any necessary updates to ensure their account is in good standing. If the business or a location is closed, the license must be canceled or the location removed to avoid renewal requirements, as well as applicable fees and penalties.
 
Businesses should keep their owner/officer information current, as this is how ADOR representatives authorize callers.
 
Owner/officer changes are submitted through the Business Account Update form.
 
Taxpayers can watch the Business Account Update tutorial to learn how to properly complete the paper form.
 
PROPERTY MANAGEMENT COMPANIES
A property management company (PMC) is a business that acts on behalf of a property owner regarding rental properties. This oversight includes overseeing and managing the property, filing returns, and remitting applicable taxes to the Arizona Department of Revenue (ADOR).
 
ADOR’s For Property Management Companies (PMC) page enhances customer experience and guidance. The page includes compiled forms list, tutorials, and helpful tips.
 
The best place for a new PMC to start is with the PMC workshops offered by ADOR’s Education and Outreach team. The PMC workshops are a series of three sessions that cover all that a property manager needs to know, from how to get licensed as a PMC and obtain a Power of Attorney, to onboarding and offboarding your various property owners.
 
STAY INFORMED AND CONNECTED WITH ADOR ON INSTAGRAM
 
ADOR is now on Instagram where we are sharing new developments such as self-service enhancements, tax changes, and programs that get money back into Arizonans’ pockets. 
With the launch of Instagram, you now have six platforms to stay up to date with ADOR, including Facebook, LinkedIn, NextDoor, X, and YouTube. 
Follow the Department’s social media pages by visiting the Stay Connected page.
Please note: ADOR will never ask for your personal or financial information through social media. Don’t post your social security number, license number, bank information, or other confidential data on social media. Take steps to protect your identity online and stay alert. ADOR does not address personal tax or account questions on social media; instead, will be asked to send details to an authorized azdor.gov email address. For contact information regarding specific questions, visit azdor.gov/contact-us.

FEEDBACK OPPORTUNITY
 
ADOR is continuously improving its efforts to provide excellent customer service to our taxpayers. Please give an evaluation of your customer experience with paper processing times. It is a short survey and we value your time and feedback. 

TPT FILING FACTS

• Payment Voucher: You must mail a TPT-V (voucher) with your paper check when submitting a payment for an e-filed TPT return or late TPT return.
• AZ Tax Rate Look Up Tool: On the AZTaxes.gov website is a resource that can be used to find the transaction privilege tax rates for any location within the State of Arizona. Use the physical address or the zip code, or if it is unknown, the Map Locator link can be used to find the location. Select the appropriate business description and the state/county and city (if applicable) transaction privilege tax rates along with the business codes needed to report your transaction will be displayed
• TPT Return Without Payment: Sending returns without payment generates a bill. ADOR recommends sending returns with all applicable fees/payments to avoid receiving a bill.
• Deduction Codes: Every deduction taken must have a deduction code. Deductions reported with an incorrect or missing deduction code will be disallowed and penalties and interest may apply.

 
DUE DATE REMINDERS
TPT Filing Frequency and Due Dates*- Monthly
TPT filers are reminded of the following October TPT filing deadlines:

• November 20 - TPT return due date.
• November 26 - Paper returns must be received at ADOR by this date.
• November 28 - Electronic return filed in AZTaxes must be submitted before 11:59 p.m. on this date. Electronic payment made in AZTaxes must be submitted before 11:59 p.m. on this date.

*The electronic due date for TPT return is dependent on the return and payment being timely and filed electronically.
 
TAX CHANGES
Maricopa County/City of Phoenix - Effective date of October 1, 2025
On June 27, 2025, Governor Katie Hobbs signed Laws 2025, Chapter 251 (House Bill 2704) which establishes a new funding mechanism for the Maricopa County Stadium District (the District), the owner of Chase Field.
 
This bill does not create any new taxes. Instead, it redirects a specific portion of existing TPT revenues generated from activities at or near Chase Field to the County Stadium District fund to be used for the renovation and maintenance of the stadium. To accurately direct this funding for these targeted uses at Chase Field, businesses that are located within the District must make certain necessary changes beginning with their October 2025 returns (due in November, for monthly filers).
 
All businesses within the boundaries of the County Stadium District are required to report under County Region Code MCZ and City Region Code PZ. For more information, please refer to the County Stadium District FAQs.
 
Town of Chino Valley - Effective date of November 1, 2025
On August 26, 2025, the Mayor and Council of the Town of Chino Valley passed ordinance 2025-955, thereby amending the town tax code to increase the tax rate for the Manufactured Buildings classification from two percent (2%) to three percent (3%); and providing for repeal of conflicting ordinances and for severability.
 
The (3%) affects the following business classifications:
Manufactured Buildings (027).
 
Town of Thatcher - Effective date of January  1, 2026
On August 26, 2025, the Mayor and Council of the Town of Thatcher passed ordinance 197-2025, thereby amending the town tax code to increase the transient lodging additional tax classification from three percent (3%) to five percent (5%); and providing for severability.
 
The (5%) affects the following business classifications:
Hotel/Motel (Additional Tax) (144).
 
City of Phoenix - Effective date of January  1, 2026
Important change reminder: New 2026 threshold amounts for the retail sales and use tax two-level tax rate structure, as approved by Phoenix voters with Proposition 104 in the August 25, 2015 city election. 
 
The inflation adjustment to the threshold amount will affect sales transacted beginning January 1, 2026 and through December 31, 2027 tax periods.

Effective Date	Biennial Tax Period Sales	Threshold Amount
January 1, 2016	2016-2017 sales	$10,000
January 1, 2018	2018-2019 sales	$10,303
January 1, 2020	2020-2021 sales	$10,968
January 1, 2022	2022-2023 sales	$11,631
January 1, 2024	2024-2025 sales	$13,886
January 1, 2026	2026-2027 sales	$14,338

The current threshold amount of $13,886 will be adjusted by an incremental amount of $452 to $14,338 for the next two years beginning January 1, 2026. 
Any retail sales and/or use tax business activity must be reported in accordance with the new threshold amounts under the two-level tax rate structure utilizing the proper corresponding business code:
Retail Sales (Single Item Portion over $14,338) (366); Use Tax - Single Item Portion over $14,338 (368); Remote Seller - Marketplace Facilitator (Out-of-State with no Arizona Physical Presence) Retail Sales - Single Item Portion over $14,338 (629); Marketplace Facilitators with Arizona Physical Presence Retail Sales - Single Item Portion over $14,338 (366); Marketplace Facilitators with Arizona Physical Presence Third Party Sales - Single Item Portion over $14,338 (629); Medical Marijuana Retail Sales - Single Item Portion over $14,338 (687); Adult Use Marijuana Retail Sales - Single Item Portion over $14,338 (686); Marijuana Retail Sales (Ancillary/Accessory Products) - Single Item Portion over $14,338 (366); Marijuana Use Tax Purchases - Single Item Portion over $14,338 (368).
City of Holbrook - Effective date of January  1, 2026
On October 22, 2025, the Mayor and Council of the City of Holbrook passed ordinance 25-08, thereby amending the city tax code to increase the transaction privilege tax rate on Hotels from three percent (3%) to five percent (5%); and increasing the transaction privilege tax rate on Hotel/Motel (Additional Tax) from two percent (2%) to five percent (5%); and providing Severability.
 
The (5%) affects the following business classifications:
Hotels (044); Hotel/Motel (Additional Tax) (144).
 
Maricopa County - Effective date of January  1, 2026
On November 5, 2024, the Maricopa County Transportation Excise Tax (Proposition 479) was voted on as part of the General Election ballot. The measure, approved by Maricopa County voters, extends the existing one-half cent (0.5%) excise tax for 20 years through December 31, 2045. Because there is no change in the tax rate relative to the prior measure (Proposition 400, expiring December 31, 2025), there is no impact to the combined state and county tax rates.

EDUCATION, TUTORIALS AND TRAINING
All ADOR workshops are free of charge. Below are upcoming options available to taxpayers. To register or access online workshops, tutorials and resources, visit azdor.gov/taxpayer-education.
 
WORKSHOPS
 
ADOR Business Tax - (In-Person)
 
Town of Gilbert
50 E Civic Center Dr
Gilbert, AZ 85296
Monday, November 17, 2025
10:00 a.m. - 1:00 p.m.
 
ADOR Business Tax Basics - (Via WebEx)
Tuesday, November 18, 2025
9:00 a.m. - noon
 
Tuesday, December 2, 2025
9:00 a.m. - noon
 
Tuesday, December 16, 2025
1:00 p.m. - 4:00 p.m.
 
Common TPT Errors and How to Avoid Them - (Via WebEx)
Wednesday, November 19, 2025
1:00 p.m. - 2:00 p.m.
 
Wednesday, December 3, 2025
1:00 p.m. - 2:00 p.m.
 
Automobile Dealer Business - (Via WebEx)
Thursday, November 20, 2025
1:00 p.m. - 4:00 p.m.
 
ADOR Marijuana Taxation - (Via WebEx)
Thursday, December 4, 2025
1:00 p.m. - 4:00 p.m.
 
Property Management Company - (Via WebEx)
These workshops are offered as a series and it is recommended to take them in order. Space in each class is limited so visit the Taxpayer Education web page to sign up today.
 
Workshop 1: Licensing and Power of Attorney
Monday, December 9, 2025
1:00 p.m. – 2:30 p.m.
 
Workshop 2: Engaging, Disengaging, and More
Tuesday, December 9, 2025
1:00 p.m. – 2:30 p.m.
 
Workshop 3: File, Pay, Amend, and More
Wednesday, December 10, 2025
1:00 p.m. – 2:30 p.m.
 
ON-DEMAND TAX EDUCATION TUTORIALS: Please visit https://azdor.gov/taxpayer-education/tpt-tutorials.