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State Delays Sales Tax Payment Portal for Contractors, Developers

Crane stacking coinsBBy Mike Sunnucks for Phoenix Business Journal

The state of Arizona needs an extra year to roll out a new portal centralizing how contractors and other businesses pay their sales taxes.

A new $7M centralized payment system was supposed to be up and running in January. It is aimed at centralizing sales tax payments for businesses that know they might pay levies to individual cities such as Phoenix, Mesa, Scottsdale, Chandler and Tempe.

Other provisions of the more streamlined sales tax changes, such as the state handling tax license renewals, will still go into effect in 2015.

Contractors will have to wait until next year to make their centralized payments.

Construction businesses and contractors have previously asked for delays to the streamlined payment system. They wanted a six-month reprieve and a special state legislative session to tweak the new rules. Now, they are getting an extra year at least for centralized payments.

The state already handles local sales tax payments and processing for most localities – just not 18 of the mostly larger cities.

That list includes Phoenix and suburbs such as Peoria, Glendale and Avondale, as well as Tucson, Flagstaff, Nogales and Sedona.

The aim of the changes was to give businesses and construction contractors a single portal and payment point for various sales taxes they pay.

Read more at Phoenix Business Journal