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Grandfather of Scottsdale TPT

  • 1.  Grandfather of Scottsdale TPT

    Posted 15 days ago
    Hello all;

    Background - Scottsdale just increased the contracting TPT rate from 1.65% to 1.75% effective 2/1/19.

    I am attempting to get the City of Scottsdale and the AZ DOR to provide me with the codes for reporting the grandfathered rate.  After a call to the city, then the state, then back to the city, then back to the state - I still don't have an answer.

    Does anyone know what to report when we file February's return this month?

    FYI - we will be having the same problem with Mesa next month.

    Thanks in advance for your help - Melvin.

    ------------------------------
    Melvin Frost CPA/MBA
    Sr. Controller
    m3companies
    Mesa AZ
    (602) 385-1656
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  • 2.  RE: Grandfather of Scottsdale TPT

    Posted 14 days ago

    The grandfathered rate for Scottsdale will be reported as 441.

     

    Thanks.

    Kirt

     

     

    Kirt N. Nelson, CPA
    Controller
     
    Layton Construction Company
    2355 East Camelback Road, Suite 800, Phoenix, AZ 85016

     
    P 602.977.3064  |  M 602.432.0307
    laytonconstruction.com  |  Licenses

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  • 3.  RE: Grandfather of Scottsdale TPT

    Posted 14 days ago
    I spoke to the City of Mesa a couple of weeks ago. They said as it stands right now, nothing is grandfathered in, everything goes to the new rate (in Mesa). He did say they were working with AZDOR to get contracts in place grandfathered in, but it was not their decision it was up to AZDOR. He did say the working plan would be the company would have to provide executed documentation to prove the contracts were in place before they could pay the lower % TPT. He said as far as he had heard Scottsdale was working under the same game plan. Unfortunately, I have had no new news in the past two weeks. My game plan was to start beating on AZDOR's door to get a ruling on Scottsdale next week but I am not holding my breath; I do not look good as a Smurf.

    ------------------------------
    Lynne Pace BS
    Chief Financial Officer
    Kinkaid Civil Construction
    Mesa AZ
    (480) 646-4438
    ------------------------------



  • 4.  RE: Grandfather of Scottsdale TPT

    Posted 14 days ago
    Melvin:  I have made the same calls to AZ DOR and Scottsdale.  I did finally receive a call back from AZDOR and was told they would get back to me with the "code".  Should I get a response I be sure to pass it on.

    Thanks, Nancy


    ------------------------------
    Nancy Palmer
    Controller
    Valley Rain Construction
    Mesa AZ
    (480) 894-2835
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  • 5.  RE: Grandfather of Scottsdale TPT

    Posted 14 days ago
    When this happened to us at Wickenburg, AZDOR said that we were disallowed from paying the lower rate because although grandfathering old tax rates is allowed at the state level, it is not allowed at the city level, unless the city ordinance declares so. If the city does not tell AZDOR to allow a lower rate of tax for contracts executed prior to the date of rate increase, all tax reporting after that date is subject to the higher rate regardless of when the contract was signed.

    In the case of Wickenburg, the city's finance director actually sent me a copy of the city ordinance showing that it allowed the lower rate for pre-existing contracts and I sent her copies of our executed contracts in return. After that, we were permitted to report our taxes at the old rate under a restricted code.

    Betsey Chavez