Online Retailer’s Use of Distributors Creates Sales Tax Nexus in AZ

April 5, 2024

Share this Article:

Written By: Baden Tax

A man is standing in a warehouse looking at a tablet.

The Arizona Court of Appeals recently found that a nationwide auto parts online retailer had established substantial nexus in Arizona through its distributors. The online auto parts retailer is based in Wisconsin and has distributors located in Arizona. The Arizona distributors supply, ship, and facilitate returns for the online retailer’s customers in Arizona. The Arizona Department of Revenue argued that the online retailer’s use of distributors creates substantial nexus in Arizona. The Arizona Court of Appeals agreed noting that the distributors acted on behalf of the online retailer, much like an independent contractor. The online retailer is compelled to register and collect Arizona sales tax due to its use of distributors in the state of Arizona.



If you have any questions, please contact Gary Schleinkofer at 260-969-2576.

Newer Post >

Connect with us:

Two warehouse workers in safety vests inspecting shelves in a large storage aisle

What Assets Qualify for Business Personal Property Tax

June 1, 2026
Learn which personal property tax assets may be taxable, from equipment and technology to leased assets, exemptions, depreciation, and valuation.
Two coworkers reviewing data on a large monitor in a modern office

What Triggers a Business Personal Property Tax Audit

May 25, 2026
Learn what can trigger a business personal property tax audit, including late filings, asset changes, ledger discrepancies, depreciation errors, and exemptions.
Show More