Transaction Privilege Tax Changes And News Form

Transaction Privilege Tax Changes and News

This publication is an informational notice included with the April 2004 Transaction Privilege Tax Return.

OWN OF

AMP

ERDE

OUNTY

EALTH

ERVICES

Effective July 1, 2004: On February 4, 2004 the Mayor

ISTRICT

XPIRATION

and Town Council of the Town of Camp Verde passed

Effective 5/31/2004: The La Paz County Health Services

ordinance number 2004-A273. Ordinance 2004-A273

District Tax is scheduled to expire on May 31, 2004;

increases the Camp Verde Town Privilege Tax on

therefore, this tax does not apply to transactions completed

Construction Contracting Section 415, 416 and 417 from

on or after June 1, 2004. The rate reduction for most

2% to 3%. The tax on Construction Contracting shall be

business classifications will be 0.112% or .00112. That

reported using CE005.

would be 11.2¢ tax on a $100 transaction. Exceptions

The increase imposed by ordinance 2004-A273 shall not

include nonmetal mining (0.062% or .00062), and

apply to construction contracts entered into prior to the

hotel/motel (0.11% or .0011). The total combined state and

effective date of the ordinance. Pre-existing contracts

county rate for most transactions after May 31, 2004 will

should be reported using CE008 at a rate of 2%.

be 6.6%. For more information, check our web site

( ).

TPT-1

IPS TO

ELP YOU

ILE

OUR

We would like to help you correctly complete the new

together as part of the math check during processing. Use

TPT-1s to minimize errors that may lead to unnecessary

line 3 for Excess Tax only.

billings. We have seen a repeated error on Line 3 that you

The other error is that taxpayers are putting nothing on Line

can prevent or correct as follows.

2 and putting the calculated tax on Line 3. Because the

Many filers are putting the amount of tax due on Part III,

information contained in Part II, transaction detail, is keyed

line 2 and line 3. Line 2 is the total tax due as calculated in

as part of the processing of the return, the processing

column H from all of the pages of the return. Line 3 is the

system is filling in line 2 with the tax calculated from the

amount of Excess Tax and is added to line 2 to begin the

keyed transaction details. This creates the same result as

calculation of the amount of tax to remit. Excess tax is tax

the paragraph above: double reporting of the tax due.

that is collected that exceeds that amount calculated as due.

Please be careful completing the return and use the lines on

This excess amount must be reported and remitted with

the return as noted above. This will insure that your return

your return. Many are putting the amount of tax from

is processed properly and unnecessary billings are avoided.

column H on both lines 2 and 3. This is causing the

amount of tax due to double because line 2 and 3 are added

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Transaction Privilege Tax Changes And News Form - 2004

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