Arizona Revises Publication 622, Business Basics: A Guide to Taxes for Arizona Businesses

The Arizona Department of Revenue has revised Publication 622, Business Basics: A Guide to Taxes for Arizona Businesses. There are a few changes of which taxpayers should take note:

  • Explanation of accounting credit for reporting sales – only applicable to state transaction privilege tax or severance tax
  • Section added regarding use tax to be paid for merchandise purchased as an exempt sale for resale that is subsequently used by the business and on purchases from an out-of-state vendor for use in Arizona
  • Explanation of reporting transaction privilege tax – including changes that affect the TPT license and making payments via EFT
  • Information regarding the waste tire fee
  • Further explanation regarding withholding requirements:
    • Withholding of Arizona income tax is required for retailers; and lessors registered with ADOR who sell businesses or individuals who hire employees
    • Withholding percentages are based on gross taxable wages. “Gross taxable wages” is the amount that meets the federal definition of “wages” contained in Internal Revenue Code § 3401
    • Generally, gross taxable wages are reported in box 1 of the employee’s federal Form W-2 at the end of the calendar year

The publication also contains contact information for relevant agencies in Arizona involved in employer reporting.

Author

Tom Hospod

Tom Hospod is a Regulatory Counsel at Sovos Compliance. Within Sovos’ Regulatory Analysis function, Tom focuses om Affordable Care Act (ACA) reporting, Tax Withholding, and Automatic Exchange of Information (AEOI). Prior to Sovos, Tom worked as a legislative aide in the Massachusetts House of Representatives. Tom is a member of the Massachusetts Bar, earned his B.A. from Boston College and his J.D. from the University of Miami.
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