Arizona Amazon Sales Tax
Arizona enforces marketplace facilitator law since October 2019. Amazon collects and remits sales tax automatically on all Arizona orders.
Overview
Arizona's marketplace facilitator law took effect October 1, 2019. The state levies a base 5.6% Transaction Privilege Tax (Arizona's version of sales tax — TPT is technically a tax on the privilege of doing business, but functions like sales tax for marketplace purposes). Combined with local rates, the effective rate can reach 11.2% in higher-tax cities.
Amazon collects and remits TPT on every Arizona order automatically. As an FBA seller you don't need to register for a TPT license to sell on Amazon. The marketplace facilitator law specifically exempts you from registration when 100% of your Arizona sales flow through the marketplace.
Arizona is one of the most active states for FBA-related nexus discussions because of the historical "physical presence in inventory" precedent set by Quill v. North Dakota and overturned by South Dakota v. Wayfair. Pre-Wayfair, having FBA inventory in an Arizona warehouse created sales tax nexus by some interpretations. Post-Wayfair with marketplace facilitator law, this is moot for marketplace sales.
What FBA sellers still need to know
No TPT license needed for Amazon-only sellers. Direct sales to Arizona buyers require TPT registration above the economic nexus threshold ($100K/year or 200 transactions).
This content is educational and not legal or tax advice. Sales tax law changes frequently and is jurisdiction-specific. Always verify with a qualified tax professional and the state revenue department before making compliance decisions.
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