House Bill 2341 Summary

• Amends sections 42-5061 and 42-5159 of Arizona Revised Statutes to modify transaction privilege tax (sales tax) provisions related to retail and use tax classifications.

• Establishes a presumption that sellers of tangible personal property are conducting business in Arizona if they contract with state residents who refer customers via internet links or otherwise, and cumulative sales from those referrals exceed $120,000 in the preceding 12 months (effective June 30, 2012).

• Requires the Department of Revenue to establish and maintain a registry of such sellers, with registration deadline of November 30, 2011, including seller information and cumulative sales data.

• Directs the Department of Revenue to calculate decreased transaction privilege tax rates for 13 business classifications (retail, telecommunications, utilities, restaurant, etc.) by January 1, 2012, to offset any net revenue increase from the new affiliate sales provisions.

• Authorizes the legislative council to prepare conforming legislation to section 42-5010 adjusting tax rates and distribution base percentages, effective June 30, 2012.