ASCPA

Arizona Taxation of Remote Sellers (Guest: Arizona Department of Revenue Deputy Director Dr. Grant Nülle)

Episode Summary

Arizona Department of Revenue Deputy Director Grant Nülle, Ph.D. talks with our lobbyist, Ryan DeMenna, DeMenna Public Affairs, about the Wayfair decision and how remote sellers will be taxed in Arizona.

Episode Notes

Arizona Department of Revenue Deputy Director Grant Nülle, Ph.D., talks with our lobbyist, Ryan DeMenna, DeMenna Public Affairs, about the Wayfair decision and how remote sellers will be taxed in Arizona.

Please see the resources available on the AZDOR website at https://azdor.gov/transaction-privilege-tax/retail-sales-subject-tpt/out-state-sellers

You can also reach the dedicated AZDOR E-Commerce Compliance and Outreach Team, who are subject matter experts:
833-AZeSALE (833-293-7253) or azesale@azdor.gov

Remote Sales Into Arizona
On May 31, 2019, Arizona Governor Doug Ducey signed House Bill (H.B.) 2757 into law. This legislation requires remote sellers and marketplace facilitators—to begin filing and paying transaction privilege tax (TPT) in Arizona starting October 1, 2019. The legislation is the result of a 2018 ruling by the U.S. Supreme Court in the South Dakota v. Wayfair case. The decision allows states to require out-of-state businesses without a physical presence to collect and remit tax on sales from transactions in their state.

Because of Arizona’s new laws, retailers selling items of tangible personal property into Arizona should carefully review the information provided on the AZDOR website to determine whether they must pay Arizona TPT.

Outline of Podcast:
5:20 Discussion on Arizona HB 2757
7:50 How litigation or congressional action could impact the legislation
8:15 Execution of the law we have in Arizona – What the AZDOR is working on to define who is a remote seller

12:25 Dr. Nülle talks about the implementation methods
16:35 Most difficult element to implement to date – communicating the change
19:23 Liability relief that might be available to businesses who may make mistakes as they work to implement Wayfair
22:20 Major implementation dates and dedicated AZDOR team contact information