SB 1546 Summary

• Establishes economic nexus thresholds requiring out-of-state remote sellers and marketplace facilitators to collect and remit transaction privilege tax if they exceed $100,000-$200,000 in annual Arizona sales (thresholds decrease from 2019-2021)

• Creates marketplace facilitator and remote seller liability protections with declining error allowances (5% in 2019, 3% in 2020, 0% from 2021 onward) for incorrect tax payments not caused by sourcing errors

• Prohibits cities and towns from requiring business licenses for remote sellers and marketplace facilitators that only meet economic nexus thresholds, and limits municipal taxation of marketplace facilitators to rates in effect September 30, 2019

• Updates tax code references to internal revenue code as amended through January 1, 2019 and makes multiple changes to income tax provisions including new dependent tax credit, increased standard deductions, and modifications to tax brackets and exemptions for individual and corporate taxpayers

• Amends retail classification definitions in transaction privilege tax law to clarify treatment of sales by marketplace sellers and exclude coal sales from retail classification