Transaction Privilege (Sales) Tax Return Instruction Sheet

TRANSACTION PRIVILEGE (SALES) TAX RETURN INSTRUCTION SHEET

Below is a SAMPLE of the Transaction Privilege Tax Return

Barcoding indicates your license number and

reporting period for THIS SPECIFIC RETURN

ONLY. To ensure proper filing, do not photocopy

for use with a different report period or license

number.

License #

999999

Report Period:

0604

Information regarding timely

returns.

DUE DATE: The due date for the city privilege tax is the 20th of the month following the reporting period. A return is considered timely if

received by the last business day of the month. A business day is any day except Saturday, Sunday or a legal city holiday.

POSTMARKS ARE NOT EVIDENCE OF TIMELY FILING

Information regarding penalty and

PENALTIES: 1.

Failure to File - A penalty of 5% of the tax due will be assessed for each month, or fraction elapsing between the delinquency date of

interest.

the return and the date on which it is filed. Filing your return on time, whether or not you pay the tax due, will avoid the late filing penalty.

Failure to Pay - A penalty of 10% of the unpaid tax will be assessed if the tax is not paid timely.

OFFICE USE ONLY

Total Penalty - Total penalties assessed will not exceed 25%.

INTEREST:

Taxes received after the delinquency date will be assessed interest at a rate of 1% per month until paid.

The interest MAY NOT be abated by the Tax Collector.

Check list information.

CHECK YOUR RETURN: Check the amounts recorded by type of income for each line item as follows.

Itemized deductions equal the total deductions recorded.

Taxable income equals gross income less total deductions.

Tax due is equal to the amount obtained by applying the preprinted tax rate to the taxable income amount.

Total tax due equals tax due plus any excess tax collected.

FOR ASSISTANCE, CALL:

City of Scottsdale (480) 312-2400

FAX (480) 312-4806

Schedule A

SCHEDULE A - DETAILS OF DEDUCTIONS: Enter below the deductions and exclusions you used in computing your city transaction privilege tax or use tax.

You must keep a detailed record of all deductions and exclusions. Failure to maintain proper documentation and records required by city ordinance may result

An explanation of Detail of

in their disallowance. A separate detail of city records and documentation must be maintained only when the income, deductions or exemptions are different

from state requirements.

Please note: Not all deductions are available to all business classifications.

Deductions, Deduction Codes

NOTE: The line numbers at the top of each column below correspond with the line numbers of the business descriptions listed on the front page.

and Descriptions of Deductions.

Bus. Class

DEDUCTIONS

Code

TRANS PRIV

USE TAX

TRANS OCC

PRE 7/2004 PRIV PRE 7/2004 USE

LINE 1

LINE 2

LINE 3

LINE 4

LINE 5

1. Total tax collected or factored

(State, county and city)

2. Bad debts on which tax was paid

RETAIL & PERS. PROP. RENTALS

3. Sales for resale

4. Repair, service, or installation labor

5. Discounts and refunds

6. Sales to qualified health care org.

SALES TO U.S. GOVERNMENT

7. By retailer 50% deductible

8. By manufacturer and repairer

(100% deductible)

OUT-OF-STATE SALES

9. Sales to nonresidents for use out-of-state when

vendor receives the order from out-of-state and

vendor ships or delivers out-of-state

CONSTRUCTION CONTRACTING

n/a

10. Reserved

11. 35% reduction of gross receipts

12. Exempt sub-contracting income

13. Out-of-City Contracting

OTHER DEDUCTIONS

n/a

14. Reserved

15. Sales of motor vehicle gasoline

and use fuel.

16. Sales of exempt machinery & equip.

Total Deductions: All itemized

17. Prescription drugs/prosthetics

deductions are totaled here and

18. Lease > 30 days

must balance with amount in

19. Other (explain) ___________________

Column 2 on page 1 of the return.

Total Deductions: Amounts should

balance with column 2 (FRONT)

SCHEDULE B

Excess Tax Collected by Activity

Schedule B:

Allowable Credits by Activity

Excess Tax – Enter the

n/a = not applicable

Jet Fuel _______ gals. X .018 = __________ >>> transfer this amount to line 7 on front page.

amounts of tax collected, by

FRM70A (05/04)

activity, which was more than

should have been levied.

Jet Fuel – Calculate the gallons

of jet fuel sold.

Schedule B:

Allowable credits by activity:

Add the amounts for excess tax

Enter the previously determined

and jet fuel then enter the total

amounts of allowable credits

amount on Line 7 on page 1 of

here, by activity.

the return.

Enter this amount on Line 11 on

page 1 of the return and attach

documentation.

Transaction Privilege (Sales) Tax Return Instruction Sheet - 2004 Page 4

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