SB1556 introduces changes to the transaction privilege and use tax (TPT) administration for remote sellers in Arizona. The bill allows remote sellers to elect to pay a single municipal tax rate instead of individual rates for each municipality, starting in calendar year 2025. This single rate is determined by the average of all municipal tax rates from the preceding fiscal year. Additionally, the bill adjusts the threshold for remote sellers to collect and remit TPT, changing the criteria from $100,000 of gross proceeds of sales or gross income to $100,000 of taxable sales, and shifts the start date for remitting taxes to January 1 of the following year if the threshold is met midyear.

The bill also proposes the establishment of a central clearinghouse to facilitate tax returns and remittances for remote sellers, allowing them to communicate and remit taxes through their home state's tax agency. Furthermore, it introduces a compliant purchaser certificate, enabling purchasers to pay TPT directly to the Arizona Department of Revenue (ADOR) for resale purchases from remote sellers. The bill exempts ADOR from rulemaking requirements for one year and is intended to simplify tax administration for remote sellers operating in multiple states. The legislation is named the "Sales Tax Simplification Act of 2024."

Statutes affected:
Introduced Version: 42-1054, 42-5009.01, 42-5044, 42-6018, 42-5001, 42-5061