AZ HB2056

Amends Arizona's transaction privilege tax (TPT) to create a new "Digital Property classification" taxed at 5% on remote sellers of digital property to Arizona locations.

Exempts remote sellers with less than $1 million in annual gross receipts from total remote sales of digital property in the United States in the preceding calendar year from the digital property tax.

Defines digital property as electronically transferred files including music, ringtones, motion pictures, digital books, audio/video works, and online newspapers/magazines when received on electronic equipment.

Excludes tangible prewritten computer software, video programming services, broadcasting services, and personal digital photography from the digital property classification.

Applies tax to transactions with electronic delivery at an Arizona address or when seller records or purchaser billing address indicates an Arizona location.