Transaction Privilege Tax (Sales Tax)

The State of Arizona Department of Revenue (AZDOR) administers the Town of Florence’s Transaction Privilege Tax (TPT) program. AZDOR issues TPT licenses to businesses, collects tax dollars due, performs audits, and distributes the tax revenue to the Town. You can contact the AZDOR at 800-352-4090 or visit www.azdor.gov.

Obtaining a TPT/Sales Tax License:

Visit aztaxes.gov, where you can complete the license application process online or download and complete the Arizona Joint Tax Application (Form JT-1) to get licensed. You will receive the most expedient service by completing the application online. Click here to be redirected to the AZDOR forms page where you can download Form JT-1 and any other TPT/sales tax forms you might need (change of address, adding a region code, etc.).

Residential Rental Tax (30 days or more)
A residential rental is the rental of real property for a period of 30 or more consecutive days for residential purposes. The Town of Florence tax rate is 2.00% on residential rentals. Any property leased using a property management company is subject to rental tax without regard to the number of properties being leased. Please refer to the AZDOR webpage regarding residential rentals for additional information.

In addition to any sales tax requirements, all Arizona counties require residential rental properties to be registered with the appropriate County Assessor.

Short-Term or Vacation Rental Tax (29 days or less)
All short-term rentals are subject to the State Transient Lodging classification for filing taxes for the State of Arizona, and the Hotels classification for filing TPT for the Town of Florence (Business Code 044 – 2.00%). Please note: Florence has an additional tax for the Hotels classification (Business Code 144 – 2.0%). The total Florence rate for short-term residential rentals is 4.00%.
If you utilized the incorrect tax percentage on your monthly Transaction Privilege, Use, and Severance Tax Return Form (Form TPT-1), please contact the Department of Revenue at 602-255-2060.
Note: Underreported tax amounts may be subject to interest fees and penalties.

“Know Your Code” 

Effective on Jan. 1, 2015 the business codes were changed to establish a standard between all cities and to match state codes in most instances. By understanding which business class code is appropriate for your business, you’ll be better able to calculate your final tax rate. Visit aztaxes.gov to determine the right state, county and town tax rate for your specific business category.