New Arizona Pinal County Rate Survives Judicial Challenge

As reported in an earlier entry, the Arizona Department of Revenue and Pinal County have been in disagreement over whether the state has obligation to collect and enforce an additional .5% Transportation Excise Tax that becomes effective on April 1, 2018.

While the legal challenge continues, on March 23 the Arizona Tax Court officially declined to issue an order immediately barring enforcement of the tax. This means that the tax will go into effect beginning with the reporting period starting April 1, 2018 and will be enforced and collected by the Arizona DOR.

By way of background, this tax will be applied to the first $10,000 of gross income from the sale of a single item of tangible personal property. The portion of sale price above $10,000 in gross income is not taxed.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.



Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 5,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit and follow us on LinkedIn and Twitter.
Share This Post