Arizona’s messy tax system hampers small businesses battling online retailers for tax fairness

Cronkite News
Tuesday, April 16, 2019
Veronica Graff

Tuesday, April 16, 2019
PHOENIX – Arizona small business owners are fighting for sales tax equality with online retailers, similar to 39 other states trying to collect taxes on goods that consumers buy online. But experts said Arizona’s tax system complicates the situation.

A bill in the Legislature would require online retailers who do not have a physical facility in the state to pay sales taxes on goods purchased by Arizona customers. Business advocates tout House Bill 2702 as a way to reduce the disadvantages of local brick-and-mortar businesses that compete with web-based businesses.

“A lot of small businesses are operating in very unbalanced markets,” said Thomas Barr, executive director of Local First Arizona.

An Arizona business owner wrote of the woes of small businesses, which do pay sales taxes.