ADOR is aware that some small business income taxpayers received a billing notice even though their overpayment from the individual income tax return is larger than the tax due from the small business income return. Please be advised that the Department is working to resolve the issue as soon as possible.
Customer Notice: To schedule an appointment, please contact us at [email protected].
With the mark of Arizona's one-year anniversary implementing the remote seller and marketplace facilitator law, the Arizona Department of Revenue has seen a steady incline in transaction privilege tax collection. Since October 1, 2019, the Arizona Department of Revenue (ADOR) has brought in more than $467.0 million in transaction privilege tax from over 4,500 remote sellers and marketplace facilitators. In fiscal year 2020 (September 1, 2019 – June 30, 2020), the department collected over $278.7 million and over $128.6 million towards the General Fund.
Under a state law that took effect on October 1, 2019, out-of-state businesses that do not have a physical presence in Arizona and meet certain economic thresholds must collect and remit transaction privilege tax in Arizona.
Beginning January 1, 2021, a remote seller that did not meet the threshold in 2020 should review its Arizona direct sales for 2020, and continuing in 2021, using the $100,000 threshold. Note that this threshold may be met at any time in 2021.
Marketplace facilitators and remote sellers should review all Arizona sales the previous year, using the $100,000 threshold, to determine if it needs to renew its TPT license.
Renewals are due January 1 of each year.
The department has a dedicated section on its website - www.azdor.gov/out-of-state-sellers - that contains TPT requirements, frequently asked questions, tax rate table, and other information.
In efforts to assist taxpayers, the E-Commerce Compliance and Outreach (ECCO) team is available to support out-of-state businesses and general questions about other states' remote seller/marketplace facilitator laws for Arizona-based retailers.
The ECCO team can be reached Monday through Friday, from 8 a.m. to 5 p.m. (MST) by email at [email protected], or by phone 833-293-7253 (833-AZeSale).
Taxpayers can also subscribe to ADOR's remote seller bulletins and receive notices regarding filing requirements, tax rate changes, law changes, and reminders.
Thursday, November 5, 2020