New Arizona Pinal County Rate Survives Judicial Challenge

Sovos
April 2, 2018

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.

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Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
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