AZ SB1320

Extends the sales factor apportionment method for corporate income tax allocation through December 31, 2024, after which taxpayers must return to using the equally-weighted property, payroll, and sales factor method.

Establishes new market-based sourcing rules for non-tangible personal property sales beginning January 1, 2025, including specific provisions for real property, intangible property, services, loans, and investment assets.

Limits the multistate service provider election for treating service sales under combined income-producing activity and market sales methodology to taxable years through December 31, 2023.

Specifies that intangible property used in marketing goods or services is used in Arizona if the consumer purchasing the good or service is located in Arizona.

Requires the Department of Revenue to adopt rules necessary to implement the new sourcing provisions for non-tangible property sales.