Arizona To Start Collecting Online Sales Taxes

Published: Monday, August 19, 2019 - 5:05am
Christina Estes/KJZZ
Starting Oct. 1, 2019, certain out-of-state sellers will be required to collect and submit sales taxes to Arizona.

In less than two months, Arizona will begin requiring remote sellers to pay transaction privilege taxes, commonly called sales taxes.The Arizona Department of Revenue is accepting public comment through Aug. 23. Written comments can be submitted to Lisa Querard, ADOR tax policy administrator, by emailing [email protected]

ADOR released its rules requiring certain out-of-state online businesses with no physical presence in Arizona to collect and submit taxes to the state.

This year, the rules apply only to merchants with at least $200,000 in gross annual sales. By 2021, businesses that gross at least $100,000 will have to pay.

For years, brick-and-mortar retailers have complained they’re at a disadvantage because they’re required to collect sales taxes while online retailers are not.

Last year, the U.S. Supreme Court ruled states have the authority to mandate and collect taxes from out of state sellers.

This year, the governor signed a bill supported by local businesses and chambers of commerce.

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