Arizona Dept. of Revenue - February TPT Newsletter, Transaction Privilege Tax Changes and News
| 2026 TRANSACTION PRIVILEGE TAX LICENSE RENEWALS Businesses licensed with the Arizona Department of Revenue (ADOR) were required to renew their transaction privilege tax license (TPT) by January 1, 2026. Penalties and/or late fees apply to renewals received after January 31, 2026. If a business does not pay the renewal fee timely, they will receive a bill from ADOR for the unpaid renewal fees plus renewal penalties (The penalty is 50% of the city renewal fee). Additionally, if fees are not paid when renewing, the license will only be mailed to the business once the fees are paid. Fastest Way to Renew File, pay, and renew online through AZTaxes.gov for easier renewals and quickest processing. State law requires taxpayers with multiple business locations to renew their TPT license electronically. Here are key steps and best practices to help streamline the renewal process and reduce errors. Remote Sellers and Marketplace Facilitators Remote sellers and marketplace facilitators without a physical presence in Arizona and having more than $100,000 in gross sales to Arizona customers must renew their TPT licenses. If the threshold was not met, the business may consider canceling their TPT license for 2026. Marijuana-Related Licenses Marijuana businesses should not renew their excise tax license, but they must renew their TPT license every year. Obtaining License Certificate and Address Updates Once renewal fees are fully paid, ADOR will mail the TPT License Certificate to the mailing address on file. You should verify and update the mailing address before renewing if needed. Closing a business? Businesses that are no longer operating must cancel their license to avoid renewal obligation, fees, and penalties. This process will help ensure account histories remain in good standing. For more common questions, see the FAQ portion of the Renewing a TPT License page. UNCLAIMED PROPERTY AUCTION IN FEBRUARY ADOR will hold its annual public auction of unclaimed property items beginning Wednesday, February 18, 2026 at noon through Sunday, February 22, 2026 at 5:00 p.m. Each year, ADOR auctions the contents of abandoned safe deposit boxes to the highest bidder. Items for sale include jewelry, coins, currency, and a variety of collectible items that have not been claimed by their owners after many years. Proceeds from items sold from the auction are transferred to a custodial account where the funds will remain for the rightful owners to claim. The auction is being held by Sierra Auction Management, Inc., and bidding is available at www.sierraauction.com. An opportunity for the public to view the auction items in person will be held on Friday, February 20, 2026 from 9:00 a.m. to 3:00 p.m. at 4298 N. 35th Drive, Phoenix, AZ 85019. Assets from abandoned safe deposit boxes make up only a portion of unclaimed money the Arizona Department of Revenue safeguards until the funds can be returned to its rightful owner. For more information about the Department of Revenue’s Unclaimed Property Unit and how to search to see if you have unclaimed assets, visit https://azdor.gov/unclaimed-property. THRESHOLD REMINDER TPT Electronic Filing and Paying Thresholds TPT filers with an annual total tax liability of $500 or more are required to file electronically. Visit the Transaction Privilege Tax web page on the ADOR website for more information. FILING FREQUENCY The Arizona Department of Revenue requires that taxpayers file their TPT return according to their assigned tax liability until the tax liability exceeds the filing thresholds. TPT filing frequency is determined by the amount of a business’ total estimated annual combined Arizona, county, and municipal TPT liability.
To change the filing frequency, businesses must request through a Form 10193 Business Account Update and send it to the address on the form; this function cannot be completed online. The tax liability will be reviewed, and if it falls within the thresholds, the filing frequency will be changed during the next available filing period. NOTE: If there are delinquencies on the business account, the filing frequency cannot be changed. FILING YOUR TAX RETURN E-filing is a better and faster method of filing your taxes. Some noted taxpayer benefits for e-filing include:
TPT TAX TIPS
DUE DATE REMINDERS TPT Filing Frequency and Due Dates*- Monthly TPT filers are reminded of the following January TPT filing deadlines:
TAX CHANGES 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.
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. Town of Cave Creek - Effective date of February 1, 2026 On November 18, 2025, the Mayor and Council of the Town of Cave Creek passed ordinance 2025-16, 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 four percent (4%) to five percent (5%); providing Severability. The (5%) affects the following business classifications: Hotels (044); Hotel/Motel (Additional Tax) (144). City of Tucson - Effective date of March 1, 2026 On December 16, 2025, the Mayor and Council of the City of Tucson passed three ordinances:
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 Basics - (Via WebEx) Tuesday, February 17, 2026 1:00 p.m. - 4:00 p.m. Tuesday, March 3, 2026 9:00 a.m. - noon ADOR Business Tax - (In-Person) Town of Gilbert Municipal Building I - Tower Room (Conference Room 146) 50 E Civic Center Dr Gilbert, AZ 85296 Tuesday, February 24, 2026 10:00 a.m. - 1:00 p.m. Automobile Dealer Business - (Via WebEx) Wednesday, February 25, 2026 1:00 p.m. - 4:00 p.m. ADOR Business Tax - (In-Person) City of Peoria Peoria City Hall 8401 W Monroe St Peoria, AZ 85345 Thursday, February 26, 2026 9:00 a.m. – noon ADOR Business Tax - (In-Person) City of Tempe Tempe Public Library, Desert Willow Room 3500 S Rural Rd Tempe, AZ 85282 Wednesday, March 4, 2026 10:00 a.m. - noon ON-DEMAND TAX EDUCATION TUTORIALS: Please visit https://azdor.gov/taxpayer-education/tpt-tutorials. |
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