SB 1325 Summary

• Allows remote sellers to report and remit transaction privilege taxes through their home state's tax agency if that state extends comity to Arizona, or through a central clearinghouse if one is established.

• Establishes a "compliant purchaser certificate" enabling purchasers buying tangible personal property for resale from remote sellers to pay taxes directly to the department instead of requiring the remote seller to collect them.

• Modifies nexus thresholds for remote sellers: $200,000 (2019), $150,000 (2020), $100,000 (2021-2023), and $100,000 in taxable sales (2024 and beyond) before they must register and remit taxes.

• Allows remote sellers to elect a single statewide municipal tax rate equal to the average municipal tax rate imposed in Arizona during the preceding fiscal year, rather than calculating different rates for each municipality and special district.

• Exempts the Department of Revenue from standard rulemaking requirements for one year following the act's effective date to facilitate implementation.