New legislation introduced at the Arizona Capitol Wednesday could change the state’s “unfair tax code” and make online retailers subject to Arizona sales tax.
Currently, Arizona law only requires retailers with a physical presence in the state to pay sales tax, but House Bill 2702 would require out-of-state retailers and online marketplace facilitators to collect and remit sales tax on all products.
The bill is meant to be Arizona’s answer to the U.S. Supreme Court’s decision in the South Dakota v. Wayfair case last summer, which overturned a landmark precedent in the e-commerce sales tax debate. Now states can collect sales tax from companies selling products to residents online, even if the retailer isn’t based there.
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By Brandon Brown
February 13, 2019