Important Transaction Privilege Tax (TPT) Changes

Transition to Centralized Licensing & Reporting

The City of Flagstaff is committed to ensuring taxpayers experience a smooth transition in licensing and reporting TPT activities with the Arizona Department of Revenue (ADOR). Early transition has begun for licensed businesses ahead of the anticipated start date of January 1, 2017.

To ensure your business activity is reported accurately and completely with ADOR, your business must be licensed with ADOR using the City of Flagstaff region code "FS." You may begin transitioning your TPT filing and reporting with ADOR by taking the following steps:

1. Register your Flagstaff business location with ADOR electronically. Watch Taxpayer Education Tutorials videos.
2. If your business is already registered in the AZTaxes.gov system:
   • Add "Flagstaff" as a location in the Region Code screen (region code FS).
   • Add the appropriate Business Codes as instructed in the Taxpayer Education tutorial videos.
3. If your business has more than one physical location in Arizona:
   • It is State law that you file the State's multijurisdictional TPT-2 tax return form electronically and remit your payment online.
   • The filing and payment due dates are listed in the Transaction Privilege and Use Tax Due Date Calendar located on this webpage.
4. Review the City of Flagstaff Business Code Crosswalk (PDF) and Deduction Code Crosswalk (PDF) to ADOR Business Code and Deduction Code Charts:
   • City business and deduction codes are different than state business and deduction codes of the same business description!
   • Please pay special attention when licensing and reporting to ensure both ADOR and City of Flagstaff codes are reported accurately!
5. Upon full transition of licensing and reporting to ADOR, the City of Flagstaff will inactivate your TPT license account:
   • Complete Form 2111 (PDF) to cancel your City of Flagstaff TPT account
   • Please contact us if you have outstanding or amended TPT returns to file or a credit balance on your account

For additional information please email Sales Tax or call 928-213-2250.

The City of Flagstaff Sales Tax and Licensing Division thanks you for helping make TPT Simplification a success. We are confident these changes will make it easier for all Arizona businesses to report state, county, and city TPT taxes to one jurisdiction.