Arizona Creates New Economic Nexus Thresholds for Remote Sellers

Sep 4th, 2019

Arizona recently passed a bill creating new economic nexus thresholds for remote sellers. Currently, Arizona requires remote sellers to collect transaction privilege tax if, in the current or previous calendar year, they make over $100,000 of sales into Arizona. The new economic nexus law will increase the threshold to $200,000 and then drop it back to $100,000 over time.

Effective October 1, 2019, remote sellers will be required to register with the Arizona Department of Revenue (ADOR) if, in the previous or current calendar year, they make $200,000 or more from sales into Arizona. This means that if a business made $200,000 in sales into Arizona in 2018, it must register with ADOR on October 1, 2019. For the calendar year of 2020, remote sellers will be required to register with the ADOR if, in the previous or current calendar year, they make $150,000 or more from sales into Arizona. This means that if a business makes $150,000 in sales in Arizona in 2019, it must register and collect tax for 2020. For the calendar year of 2021 and beyond, remote sellers must register with the ADOR if they make $100,000 or more from sales into the state.

Also effective October 1, 2019, a marketplace facilitator will have nexus if, during the current or previous calendar year, it made over $100,000 of sales into the state. These sales include both the facilitator's own sales and sales its makes on behalf of its marketplace sellers.

https://www.ttrus.com/arizona-economic-nexus.pdf