The address a marketplace facilitator should look up will vary depending on whether the marketplace facilitator is located in or outside Arizona.
- For marketplace facilitators located in Arizona, sales should be reported using: (a) the tax rates and codes of the marketplace facilitator’s location in Arizona, if the order information is received in Arizona, and (b) the tax rates and codes of the customer’s address, if the order information is received outside Arizona.
- Sales made through a marketplace facilitator outside Arizona are sourced to the shipping address of the consumer. If there is no shipping address, the sale is sourced to the customer’s billing address.
Remote sellers should report taxes on sales to Arizona customers to the customer’s shipping address. If there is no shipping address, the taxes should be reported to the customer’s billing address (A.R.S. § 42-5040).
Use the physical address, or if the shipping address is unknown, the billing address, the Map Locator link can be used to find the location. Select the appropriate business description and the state/county and city TPT rates along with the business codes needed to report gross receipts, which will be displayed.
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Arizona Transaction Privilege & Use Tax Rate Look Up Tool
How is a Special District Code used by a remote seller or out-of-state marketplace facilitator?
Special District Codes: Used on the TPT reporting form instead of the county region code in certain instances for distribution purposes.
Indian Reservation Specific Region Codes: Used on the TPT reporting form when out-of-state sales are shipped (or bill to address if no shipping address available) to an Indian Reservation.
Tucson Special District Code: Used on TPT reporting for out-of-state sales shipped (or bill to address if no shipping address available) within the special district.
Queen Creek Special District Code: Used on municipal TPT reporting for out-of-state sales shipped (or bill to address if no shipping address available) within the boundaries of the special district. Call (480) 358-3000 for additional information.
Is a payment processor a retailer?
A payment processor is someone appointed to handle the payment between the purchaser and the seller; it is not a retailer for purposes of economic nexus and TPT.
A payment processor is defined as a business that is appointed to handle payment transactions from various channels, such as charge cards, credit cards, and debit cards, and whose sole activity with respect to marketplace sales is to handle transactions between two parties.
I am an out-of-state wholesaler of products with third-party distributors across the country, including in Arizona. Am I a remote seller or marketplace facilitator?
Not necessarily. A marketplace facilitator is any person or business operating a marketplace, and facilitating transactions between a buyer and retailer or wholesaler, and accepting payment on behalf of the retailer or wholesaler. By definition, a wholesaler would not be a marketplace facilitator. Your Arizona distributor can create physical nexus for you (the manufacturer) with Arizona if it creates and maintains a market for your product in Arizona. This will require you to obtain a TPT license that is issued to Arizona-based retailers. However, if you do not have physical nexus or your distributors do not create physical nexus on your behalf, you are likely a remote seller if you meet the applicable gross income threshold on your sales into Arizona. If you are a remote seller, you will be responsible for being licensed as a remote seller and paying retail TPT, when applicable, on sales into Arizona. If you have not met the economic threshold, you will not be required to be licensed but may voluntarily license and collect TPT; however, if you choose to be licensed as a remote seller, you must use the 600 series business codes.