Brad Scott, a member of the National Federation of Independent Business (NFIB) Arizona Leadership Council, testified this week before the Arizona House Ways and Means Committee in support of House Bill 2290. The proposed legislation aims to clarify how Arizona’s Transaction Privilege Tax Sourcing Law applies to retail sales within the state. Specifically, it would confirm that for in-state customers, the business location of the seller determines where transaction privilege tax is sourced. The bill also includes a definition of “business location” to further clarify existing law.
During his testimony, Scott urged lawmakers to maintain Arizona’s current system for taxing in-state sales. “I beg of you, make sure remote sellers do not become the norm within Arizona for local businesses, keep us as an origin-based state for in-state sales,” Scott said.
Chad Heinrich, NFIB State Director, also addressed the committee and called for legislative action on HB 2290. “We need clarity, and what our small businesses are at risk of is potential auditors that may not be familiar enough with the law to know that in-state transactions to in-state customers are taxed based on the origin, so we urge you to pass the bill,” Heinrich stated.
The hearing included discussion about providing certainty for small business owners regarding tax obligations when conducting retail transactions with Arizona customers.
The National Federation of Independent Business plays a significant role in representing small and independent businesses across Arizona by advocating for policies that affect their operations and economic growth. The organization offers resources such as compliance tools and research on economic conditions while helping business owners shape policy decisions at both state and national levels. More information about NFIB’s work in Arizona can be found on its official website.
