In 2024, Arizona updated its marketplace nexus laws to enhance tax collection and compliance:

1. Threshold Consistency: The economic nexus threshold remains at $50,000 in annual gross sales, applying uniformly to both remote sellers and marketplace facilitators.

2. Facilitator Responsibilities: Marketplace facilitators like Amazon and eBay are now required to collect and remit TPT on behalf of all third-party sellers operating on their platforms, regardless of individual seller thresholds.

3. Centralized Compliance: Facilitators must integrate automated tax collection systems, ensuring accurate remittance based on the buyer’s location and local tax rates.

4. Enhanced Enforcement: Arizona has increased monitoring and enforcement efforts to ensure marketplace facilitators comply with the updated nexus laws, reducing non-compliance and tax evasion.

5. Streamlined Reporting: Facilitators benefit from streamlined reporting processes, allowing them to manage multiple jurisdictions efficiently through Arizona’s centralized tax system.

These changes simplify compliance for individual sellers by shifting the responsibility to facilitators, ensuring broader tax coverage and enhancing Arizona’s revenue collection from online sales. Marketplace facilitators must adopt robust tax systems and maintain accurate records to adhere to the new regulations, thereby supporting state and local tax obligations effectively.