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Arizona Senate Kills Amazon Sales Tax Nexus Bill

  • Mar 9, 2012 | Will Frei

The Arizona Senate voted down SB 1338, a bill that would have changed the definition of "retailer" so that companies like Amazon and its affiliates would have to collect and remit Arizona sales tax

The bill failed to pass on a 20-8 vote. Arizona Senator Jerry Lewis, R-Mesa, said that he voted against the bill because it singled-out Amazon and that "is against our Constitution." Lewis states that Amazon came to Arizona with the understanding that they would not have to collect and remit sales tax. For Lewis, passing the bill would send a message to businesses considering a move to Arizona: "Please come to Arizona where we may change the rules on you at a later date."

However, Senator Al Melvin, R-Tucson, who proposed SB 1338, believes the bill levels the playing field for Arizona brick-and-mortar businesses. These businesses must collect and remit sales tax, and therefore charge higher prices than online retailers like Amazon. Melvin argues that the bill would have helped "save the brick-and-mortar jobs."

SB 1338 would also have eliminate the requirement for Arizona citizens to declare use tax on their income forms. Yet, there are still active Arizona bills that would do away with use tax obligations. Check back with Tax Rates for up-to-date information on Arizona tax legislation.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.