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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
TPT; utilities classification; reporting
Purpose
Requires water, electric and gas utility providers to separately maintain the gross proceeds of sales to residential and nonresidential customers and report the separate amounts to the Arizona Department of Revenue (ADOR).
Background
Transaction
privilege tax (TPT) is a gross receipts tax levied for the privilege of
conducting business in Arizona and is imposed under 16 business
classifications. Statute requires businesses to file a TPT return monthly and
pay TPT to ADOR by the 20th day of the following month after the tax is
incurred. The utilities classification of TPT is comprised of the business of
producing and furnishing natural or artificial gas and water and providing
ancillary, electric distribution, electric generation, electric transmission
and other services to retail electric customers (A.R.S.
§§ 42-5008;
42-5014; and 42-5063).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a business that produces, furnishes or provides natural or artificial gas, water or electricity to indicate the gross proceeds of sales to residential and nonresidential customers separately in the business's books and report the separate amounts to ADOR on the business's TPT return.
2. Requires ADOR to revise the TPT return form to include the reporting requirement by the sixth month after the general effective date.
3. Repeals the requirement for ADOR to revise the TPT return form on January 1, 2027.
4. Applies the reporting requirement to taxable periods beginning on or after the first day of the sixth month after the general effective date.
5. Makes conforming changes.
6. Becomes effective on the general effective date.
Prepared by Senate Research
February 5, 2025
MG/AL/ci