Who Knows About TPT?

[twocents]

Can one of the knowledgeable RDP inmates explain in 'plain English' exactly what "TPT" (Transaction Privilege Tax) is, and do all businesses need a "TPT" number? Asking for a friend. The more I read about it, the more confusing it gets.

 

[DLC]

Man o man that will put you to sleep really fast!

don’t click on that link.....whew

 

[twocents]

I clicked -- exactly what I was hoping to avoid. Maybe there's a book out there about it -- "TPT for Dummies"

 

[BoatCop]

Is this Arizona?

Arizona doesn't have a State "sales tax" imposed on buyers. It has a "Transaction Privilege Tax" that the seller is responsible to pay. BUT! The seller is permitted to pass this tax on to the customer, which every seller does. That's why you'll see a lot of "NO SALES TAX" sales advertised in this state. Especially at furniture stores. Big whoop. It's a 5.6% discount.

 

[mesquito_creek]

in Arizona 2017... for construction trades the law basically eliminated the TPT for contractors. We pay sales tax over the counter for materials now, no more tax exempt at the time of purchased passed on to the customer.

 

[78Southwind]

in Arizona 2017... for construction trades the law basically eliminated the TPT for contractors. We pay sales tax over the counter for materials now, no more tax exempt at the time of purchased passed on to the customer.

Do you have a reference for this? My parents just got a quote to have a home built on their lot and there was a line item for the transaction privilege tax. It was about 5% of the build cost.

 

[mesquito_creek]

Do you have a reference for this? My parents just got a quote to have a home built on their lot and there was a line item for the transaction privilege tax. It was about 5% of the build cost.

That quote was for trades that do remodel/repair/maintenance/restoration … not new construction. And it can be a little grey because an AC guy could do a new install and still just pay the sales tax upfront over the counter because he doesn’t want to carry a TPT license if 90 percent of his work is repair. A GC doing new homes most likely is going to be required to charge the tax at the point of sale. Every city/county has different rates. I would have expected something like 6.25 on a new house.

A new home the GC is considered “prime” contractor and has to collect the tax if he is not paying tax over the counter. Most trades who contract without a GC are not prime and just pay over the counter. Unless you work for a GC…

It makes is super simple for the small speciality trades. You just pay at the point of sale for material.