Transaction Privilege Tax Changes and News October 2025
ADOR OPENS 2026 TPT LICENSE RENEWAL SEASON
Early launch gives businesses more time to renew on schedule
The Arizona Department of Revenue (ADOR) recently opened the Transaction Privilege Tax (TPT) License Renewal season earlier than ever, giving businesses additional time to update their accounts and to renew early. ADOR is sending letters and emails to businesses to announce the beginning of the renewal cycle for 2026 TPT licenses.
Renewal Due Date
The due date to renew a TPT license is January 1, 2026, and licenses are valid for one calendar year, from January 1 through December 31. Even if a business licenses late in the calendar year, they still must renew it for the new year. Failure to renew, or renewals received after January 31 will incur fees and/or late penalties.
Renew Online
State law requires taxpayers with multiple business locations or have $500 or more in annual total tax liability to renew their TPT license electronically (A.R.S. § 42-5014).
Furthermore, businesses that already have an AZTaxes account will be required to renew online, and will not receive a paper form.
If the renewal option is not visible on AZTaxes, the user account may not be linked to the TPT license or the primary user has not given the delegate user access to renew the license. See AZTaxes User Access for more information on primary and delegate users.
Out-of-state businesses without a physical presence in Arizona must renew their TPT licenses if they have more than $100,000 in sales to Arizona customers in the current calendar year.
Marijuana excise tax licenses are not required to be renewed, but marijuana TPT licenses must be renewed each year.
For further assistance on completing a license renewal through AZTaxes.gov, view our video tutorial.
Renewal Fees
The renewal fee is due at the time of renewal and can be paid via AZTaxes.gov with e-check or ACH Debit, if that option is already set up on the account. All fees are payable to ADOR, and include the license number and “Renewal 2026” on the payment.
Updating Owners and Officer Information
It is very important to update the owner/officer information before renewing to avoid delays in processing. If the owner/officer is not updated, ADOR will not be able to process requests due to the signer not being authorized.
Filing Frequency
Businesses should review and consider adjusting their filing frequency if their total estimated annual TPT liability has changed. This can help reduce the possibility of delinquent returns and payments by decreasing the filing occurrences. If there are delinquencies on the business account, the filing frequency cannot be changed.
For more information and frequently asked questions, visit the TPT License Renewal page.
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 citizens’ 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.
QUARTERLY FILER TPT RETURN DUE
If you are a quarterly transaction privilege tax (TPT) filer, your July to September activity is due on your September return, filed in October. Remember you must file a return for each tax period even if no tax is due and/or no sales were made. We strongly encourage taxpayers to file and pay online through AZTaxes.gov for faster processing and fewer errors.
TPT ACCOUNT UPDATES
Did you close a location or change the mailing address of your business?
On AZTaxes.gov, taxpayers can do the following:
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Change their mailing address on corporate, withholding, and transaction privilege and use tax licenses.
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Add, edit, and/or close locations for TPT licenses.
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Cancel or close an existing TPT license or single location on a TPT license.
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Add a new reporting jurisdiction, business code, or business or rental location.
To make these changes, business taxpayers log into their AZTaxes account, click on “View” in the “Actions” column on the “Business List” page and click on “Account Update.” Owner/officer changes are submitted through the Business Account Update form.
COMMON TPT FILING ERRORS
The main reason TPT paper returns do not process correctly is due to errors in returns that are filed by paper! Filing online at AZTaxes.gov reduces the chance for errors because most of the information included on your return is pre-populated for you based on your TPT license information.
Watch the Common Errors video to learn some of the top reasons returns do not process correctly to your TPT account and how they can be avoided.
For more helpful tips and error explanations, see the Notice and Correspondence Resource Center.
TPT FILING TIPS
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The percentage of filing errors increases by 50% when filing on paper. For quick, simple, and accurate filing, file online.
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If you file your taxes quarterly or annually, you are exempt from filing a monthly return.
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The taxpayer information box must be filled out when mailing a paper return.
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If your primary user email no longer exists, you will need to register as a new user for AZTaxes. ADOR recommends this be an officer/owner of the business. Instructions on registering a new user can be found on the fact sheet. Once registered you will need to complete a Business Account Update to change the primary user to the new user account.
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Remember to click “Submit” when submitting a TPT return on AZTaxes. Clicking “Save” does not submit your return.
DUE DATE REMINDERS
TPT Filing Frequency and Due Dates*- Monthly, Quarterly
TPT filers are reminded of the following September TPT filing deadlines:
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October 20 - TPT return due date.
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October 30 - Paper returns must be received at ADOR by this date.
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October 31 - 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
City of Maricopa - Effective date of October 1, 2025
On May 6, 2025, the Mayor and City Council of the City of Maricopa passed ordinance 25-06, thereby amending the city tax code to increase the general transaction privilege tax rate by one-half percent (0.5%); excluding the tax classes of Hotels, Hotels/Motels, additional Transient Lodging and Retail Sales, Food for Home Consumption from the general rate increase, and providing for Severability.
The (0.5%) affects the following business classifications:
Advertising (018); Amusement (012); Contracting - Prime (015); Contracting - Speculative Builders (016); Contracting - Owner Builder (037); Job Printing (010); Manufactured Buildings (027); Timbering and Other Extracts (020); Publication (009); Commercial, Rental, Leasing, and Licensing (213); Rental, Leasing, and Licensing for Use of TPP (214); Restaurant and Bars (011); Retail Sales (017); MRRA Amount (315); Communications (005); Transporting (006); Utilities (004); Use Tax Purchases (029); Use Tax from Inventory (030).
Medical and Adult Use Marijuana:
Medical Marijuana Retail Sales (203); Adult Use Marijuana Retail Sales (420); Retail Sales (Accessories and Ancillary Products) (017); Medical Marijuana Restaurant (221); Adult Use Marijuana Restaurant (421); UseTax Purchases (029); Use Tax From Inventory (030).
Remote Seller and Marketplace Facilitators:
Retail Sales (605); Marketplace Facilitators in Arizona Retail Sales (017); Marketplace Facilitators in Arizona Third Party Sales (605).
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 Clifton - Effective date of October 1, 2025
On July 22, 2025, the Mayor and Council of the Town of Clifton passed ordinance 02-2025, thereby amending the town tax code to increase the tax rate for the Hotels classification from three percent (3%) to five percent (5%); establishing an additional tax on Transient Lodging of five percent (5%) and removing Model Option #6; adopting a local Use tax of three percent (3%) and removing Model Option #15; revising the tiered rate threshold of a single item portion over $9,999 under the Retail classification to $10,000 and establishing a tiered rate for the Use tax classification of a single item portion over $10,000; selecting Local Option JJ to exempt the Town from the town’s Use tax; providing for severability.
The following table indicates the rates that are changing/added. Other rates remain the same.
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).
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)
City of Tempe
3500 S Rural Rd
Tempe, AZ 85282
Tuesday, October 21, 2025
10:00 a.m. - noon
ADOR Business Tax Basics - (Via WebEx)
Tuesday, November 4, 2025
9:00 a.m. - noon
Common TPT Errors and How to Avoid Them - (Via WebEx)
Wednesday, November 5, 2025
10:00 a.m. - 11:00 a.m.
ON-DEMAND TAX EDUCATION TUTORIALS: Please visit https://azdor.gov/taxpayer-education/tpt-tutorials.
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