Arizona DOR Issues Transaction Privilege Tax Ruling on Tax Treatment of Out-of-State Businesses

The Arizona Department of Revenue (DOR) Dec. 6 issued a Transaction Privilege Tax Ruling, clarifying that out-of-state businesses with a substantial nexus in Arizona, established either by physical presence or economic nexus, are subject to the state’s transaction privilege tax, county excise tax, use tax, and city privilege tax. The ruling also provides guidance on how an out-of-state business should determine the appropriate tax rate once a substantial nexus is established. [Ariz. Dep’t of Revenue, Transaction Privilege Tax Ruling 24-1, 12/06/24]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.