Arizona – Collected Extra $52M In Online Sales Tax In First 2 Months Of New Law

Arizonans are now paying more money to state and local governments for the items they’re buying online.

The Department of Revenue reports it has collected an extra $51.5 million in the first two months a new law has been in effect. Of that, $23.4 million is going into the state treasury, with the balance parceled out among cities and counties.

What makes that number so impressive is that budget analysts had predicted the net gain to the general fund for a full fiscal year would be just $85 million. And the collections reported so far don’t represent Christmas sales made in December. The new cash is not a new tax on Arizonans — at least not strictly speaking.

What it represents is Arizona’s effort to take advantage of a 2018 U.S. Supreme Court decision that concluded that states are free to levy their taxes on all sales made into the state, regardless of the source.

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By Howard Fischer Capitol Media Services
January 3, 2020