*In lieu of a sales tax, Arizona imposes transaction privilege tax (TPT) — a tax on income or proceeds derived from engaging in a taxable business within the state.
Physical Nexus in Arizona
A business is considered to have physical nexus if…
- It has a retail store in the state
- It has a warehouse in the state
- It houses inventory or stores property for sale in the state (including FBA)
- Traveling salespeople or representatives are regularly present in the state (an employee regularly present in the state more than two days a year)
A business may be considered to have physical nexus if…
- Representatives attend a trade show in the state for the purpose of taking orders or making sales
Not sure? Call Peisner Johnson at 800.940.9433
