Arizona Economic Nexus

Last Updated on July 19, 2021

Arizona has enacted legislation with economic and marketplace nexus provisions, effective October 1, 2019. Remote sellers must apply for a transaction privilege tax (TPT) license to collect TPT if, in the previous or current calendar year, they have gross proceeds from sales or gross income derived from business with Arizona customers more than the following:

  • For calendar year 2019: $200,000
  • For calendar year 2020: $150,000
  • For calendar year 2021 and each calendar year thereafter: $100,000

Marketplace sales are not included towards the threshold for remote sellers that make both direct sales and sales through a marketplace into Arizona. However, all sales by affiliated persons shall be totaled together.

For more information or questions reguarding econimic nexus, click here. TaxMatrix is here to help and provide you services focused on sales, tax recovery, research, client training and compliance.

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