Arizona Enacts Economic Nexus and Requires Marketplace Facilitators to Collect Tax

[June 4, 2019] Starting October 1, 2019,  Arizona will require remote sellers and marketplace facilitators to collect and remit Arizona’s transaction privilege tax if they surpass certain economic thresholds.

A remote seller will be required to collect and remit tax if its gross proceeds from sales to Arizona customers exceed:

  • $200,000 for the 2019 calendar year;
  • $150,000 for the 2020 calendar year; or
  • $100,000 for the 2021 calendar year and thereafter.

A marketplace facilitator will be required to collect and remit tax, on both sales made on its own behalf and sales facilitated on behalf of marketplace sellers, if the gross proceeds from sales to Arizona customers exceed $100,000 in the current or previous calendar year.

To view House Bill 2757, which enacts these rules, please click here.

Author

Daniel Kostrzewa

Daniel Kostrzewa is a Regulatory Counsel at Sovos. Within Sovos’ Regulatory Analysis function, Daniel focuses on domestic sales tax issues. Prior to joining Sovos in 2018, he worked as an attorney in Boston. Daniel received his B.A. in Economics from Boston College and J.D. from Boston College Law School. He is a member of the Massachusetts Bar.
Share This Post