Lawmakers in the state of Arizona are extremely interested in the possibility of increased revenue that may be available due to the recent Supreme Court sales tax ruling but are adamant in their stance that they do not intend to allow the situation to become an added burden to its citizens. 

J.D. Mesnard, the state House Speaker, stated while speaking to Capitol Media Services, said he saw no reason why internet purchases by Arizona residents should be exempt from the normal state sales tax when owners of brick and mortar shops in the state must adhere to current tax policy. 

Arizona, along with all states in the union, was provided with the power to require out-of-state businesses to collect these taxes as a result of a recent Supreme Court ruling.  Prior to the June 21 ruling, states could only require e-commerce sites to remit taxes to them if the retailer maintained a physical presence within its borders. 

The largest online retailer, Amazon, has been paying sales tax on sales it makes to Arizona residents since 2012 due to the fulfillment centers it operates within the state.  The agreement was struck between the two parties after the Arizona State Department of Revenue issued a $53 million assessment against the internet behemoth. 

However, Amazon has not been collecting sales tax on transactions made by third-party sellers using its platform to conduct business.  This is a portion of the money that state politicians are hoping will soon be funneled into state coffers but just how much of a revenue influx the state of Arizona can expect is not quite clear.  Estimates have ranged from $190 million to $293 million annually and this money would be shared with cities and counties in the state.
Brian Greer

Written by Brian Greer