2023 BLOG ONE

The Arizona transaction privilege tax is NOT the same as sales tax.  The two (2) are significantly different.  The tax liability is not personal if your business is set up as a legal entity (i.e. LLC, Corp., etc.).  That said, if you do not handle the business properly and treat it separately from the individual, then the State can (and most likely will) pursue the you for personal liability equal to the amount of tax collected from the third-party customer. 

A company you lease taxable items from has, under the Az TPT system, the obligation (commonly referred to as the “burden”) to pay the tax.  The tax burden is measured by the gross receipts of its business dealings.  That business, if it so chooses, can pass the tax burden on to its customers and collect the sum from them.  Note, the action by the business does not change its tax obligation. It is responsible no matter what. Passing it on merely increases the business’ receipts which is what is used to pay the TPT tax.  

ADOR - Upcoming Business Tax Workshops. This is a course on transaction privilege tax basics for businesses: bit.ly/2rR9h1YY