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Sales Tax Software Implementation
Sales Tax Software Implementation Information

In the fall of 2012, the City of Flagstaff will be implementing a new Sales Tax software system. This new system will streamline sales tax operations, benefitting both the taxpayer and the City. This webpage is an informational page for all taxpayers in the City of Flagstaff. Information and detailed examples may be found below.  The City anticipates launching the new system and sending out returns in a new format beginning with the September 2012 returns that are due October 20, 2012.

Informational Flyer

Informational Sessions:

The City will host informational sessions in the City Council Chambers at City Hall on August 15, 2012 from 9-11AM and on September 19, 2012 from 2-4PM. A recording of the informational session will be placed on the website after the first session.

Streaming Informational Session

Examples:

MULTIPLE LOCATIONS

Currently, businesses with multiple locations are able to file one return for all locations. Each location on the current return is noted by a different suffix number. In the future, each location will be a separate account and each account must file an individual return. Although a separate return is required for each location, one check with payment for all locations will suffice.

Example- Multiple Locations


BUSINESS DESCRIPTION STREAMLINING

The current system contains approximately 175 “Business Descriptions” that businesses file tax returns against. In the new system, the number of descriptions will be reduced to approximately 20 “Tax Types.” The 20 tax types mirror the tax categories found in the City’s tax code. The reduction of descriptions via the tax types will greatly reduce the number of lines the typical taxpayer completes.

Example- Construction Company
Example- Retail Store


BED, BOARD, and BEVERAGE FILINGS (Hotels, Motels, Restaurants, and Bars)

The City currently collects a 2% “Bed, Board, and Beverage” (BBB) tax on all hotels, motels, restaurants, and bars in the City. Filers in this category now have one line on a return with a 3.721% tax rate (the normal 1.721% + 2% BBB). In order to better gather information on those businesses that file taxes under this category, future returns will have two separate lines for the taxpayer to fill out. Although another line of information is required, the only change is in the calculation of the 1.721% and 2% rates to calculate the tax due.

Example- Hotel
Example- Restaurant
Example- Hotel and Restaurant Combined


DEDUCTION MODIFICATIONS

The City currently uses a set of deductions that were added to over time. With the new system, the City is mirroring the deduction terminology and numbering scheme of most other Cities in the state of Arizona. This has led to a reduction in deductions shown on the tax return, improving the clarity of the return. Deductions that no longer appear on the return may be classified under the “75-Other” deduction code.

Deduction Table