AZ SB1552

Amends Arizona tax law to allow multistate service providers to elect an alternative method for allocating business income based on where customers receive the benefit of services rather than where services are performed.

Defines "multistate service provider" as a taxpayer deriving more than 85 percent of sales from services to purchasers outside Arizona, including combined return filers and consolidated return members.

Election must be made on the taxpayer's income tax return, is retroactively effective for the full taxable year, and is binding for at least five consecutive taxable years.

Allows early termination of the election only with department permission before five years elapse, or automatically after five years without permission; termination also allowed without permission upon acquisition or merger of the taxpayer.

Applies to taxable years beginning after December 31, 2011.