Arizona Sales Tax Fairness Suffers Setback

The sales tax equity fight continues in Arizona, despite recent legislative setbacks in the state Senate.

On March 14, the Arizona House Commerce Committee voted 5 - 3 in favor of SB 1170, legislation that would clarify sales tax laws in the state by requiring any company with a warehouse or distribution center in Arizona to collect and remit sales tax.

If passed, the bill will require Amazon.com, which currently has four warehouses in the state totaling four million square feet, to collect and remit sales tax on orders made by Arizona residents. The bill also stipulates that the state will not seek to collect $53 million in unpaid transaction privilege (or sales) tax plus interest, which the state Department of Revenue has been seeking from Amazon since November 2011.

On March 13, sales tax fairness legislation was defeated a second time in the Arizona Senate by a vote of 14 - 16.