HB 2382
Initials VP Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: WM DPA 8-1-0-1
HB 2382: TPT; sourcing; validation
Sponsor: Representative Carter, LD 15
House Engrossed
Overview
Requires the Department of Revenue (DOR) to establish and maintain a taxpayer assistance
team (Team) to ensure taxpayers are sourcing the transaction to the correct jurisdiction,
levying the correct transaction privilege tax (TPT) rate and outlines duties of the Team.
Requires DOR to establish a process for a third-party provider that offers sourcing services
to taxpayers to become certified in Arizona. Requires the Director to establish minimum
standards for certification, ensure that those standards are being complied with and post a
list of the certified third-party service providers on the DOR website. Provides that a taxpayer
using a certified third-party service provider is not liable for failing to pay the correct amount
of tax due to an error in sourcing the transaction.
Requires DOR, on or before December 31, 2024, to conduct a taxpayer education campaign
and obtain feedback from remote sellers and marketplace facilitators and other TPT license
holders located in unincorporated areas of a county on issues related to sourcing and levying
the correct tax rate. Requires DOR, on or before March 31, 2025, to submit a report on the
taxpayer education campaign and the feedback received to the Governor, Senate President,
Speaker of the House of Representatives and the Secretary of State.
History
Current law provides for the licensing, renewal and revocation of state and municipal TPT
licenses but excludes any taxpayer assistance (A.R.S. § 42-5005).
Provides that retail sales of tangible personal property be sourced to the seller's business
location if the seller receives the order at a business location in Arizona (A.R.S. § 42-5040).
Provisions
1. Requires DOR to establish and maintain a Team to ensure taxpayers are sourcing
transactions to the correct jurisdiction and levying the correct TPT rate. (Sec. 1)
2. Requires the Team to conduct a verification on a random sample of TPT licensees to
ensure the correct TPT rate and source of the transaction is accurate. (Sec. 1)
3. Requires the Team to notify the taxpayer if they are levying an incorrect rate or sourcing
a transaction incorrectly and provide resources to assist the taxpayer in correcting these
mistakes. (Sec. 1)
4. Ensures the information by the Team will not be used for enforcement purposes. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2382
Initials VP Page 2 House Engrossed
5. Adds language to further define the sourcing for retail sales of tangible personal property
and a seller's business location. (Sec. 2)
6. Requires DOR, on or before January 1, 2026, to establish a process for a third-party
provider that offers sourcing services to become certified in Arizona. (Sec. 2)
7. Requires a certified third-party service provider to meet all requirements established by
DOR. (Sec. 2)
8. Requires the Director to:
a) supervise and regulate certified third-party providers;
b) establish minimum standards for certification and a quality assurance program;
c) post a list of the certified third-party service providers on the DOR website; and
d) adopt rules to administer and enforce this section of law. (Sec. 3)
9. Allows the Director to investigate and audit certified third-party service providers and to
require them, their employees or agents to be certified by DOR. (Sec. 3)
10. Allows a person to apply to be a certified third-party service provider on a form prescribed
by DOR that includes specific minimum required information. (Sec. 3)
11. Allows a taxpayer to use a certified third-party service provider to assist in sourcing
transactions. (Sec. 3)
12. States that a taxpayer that uses a certified third-party service provider for sourcing of
transactions involving tangible personal property is not liable for incorrectly reporting
the correct amount of tax due to an error in sourcing the transaction. (Sec. 3)
13. Establishes that a certified third-party service provider is liable for the correct amount of
tax that the taxpayer failed to pay if the failure was due to a sourcing issue unless the
error was due to incorrect information received from DOR. (Sec. 3)
14. Requires DOR, on or before December 31, 2024, to conduct a taxpayer education campaign
and obtain feedback from remote sellers and marketplace facilitators and other TPT
license holders located in unincorporated areas of a county on issues related to sourcing
and levying the correct tax rate. (Sec. 4)
15. Requires DOR, on or before March 31, 2025, to submit a report on the taxpayer education
campaign and the feedback received to the Governor, Senate President, Speaker of the
House of Representatives and the Secretary of State. (Sec. 4)