ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	House: WM DPA 8-1-0-1 | 3^rd Read 55-0-4-0-1 | FINAL 57-1-2-0-0 Senate: FICO DPA 4-0-3-0 | 3^rd Read 26-1-3-0-0

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HB 2382: TPT; sourcing; validation

Sponsor: Representative Carter, LD 15

Transmitted to the Governor

Overview

Requires the Department of Revenue (DOR), by January 1, 2026, to establish a process for a third-party provider that offers sourcing services to taxpayers for transactions involving tangible personal property. Outlines how liability is determined for sourcing errors.

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, 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. 1)

2. Requires a certified third-party service provider to meet all requirements established by DOR. (Sec. 1)

3. Requires the director of DOR (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. 1)

4. 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. 1)

5. 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. 1)

6. Allows a taxpayer to use a certified third-party service provider to assist in sourcing transactions. (Sec. 1)

7. 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. 1)

8. 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. 1)

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12.                   HB 2382

13. Initials VP           Page 0 Transmitted to the Governor

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