HB 2757 Summary

• Establishes economic nexus thresholds for remote sellers and marketplace facilitators to collect transaction privilege tax, with thresholds declining from $200,000 (2019) to $100,000 (2021) in gross proceeds of sales.

• Adds marketplace facilitator and remote seller definitions to tax code; provides liability relief for sellers with errors in tax collection (5% relief in 2019, 3% in 2020, phasing to 0% by 2021).

• Updates internal revenue code references from January 1, 2018 to January 1, 2019 for computing income tax, affecting all residents and nonresidents with Arizona-source income.

• Creates new dependent tax credit of $100 per dependent under age 17 and $25 per dependent age 17+ (phasing out for high-income taxpayers); repeals prior personal exemption provisions.

• Increases standard deductions and conforms tax treatment of food sales, coal, and fine art sales to state preemption over municipal taxation, with limited exceptions for cities and towns with existing ordinances.