Simplifying state income and sales taxes for small businesses a positive
PHOENIX, May 29, 2019—Chad Heinrich, Arizona state director for NFIB, the nation’s voice of small business, issued the following comments after the legislative passage of policies of importance to small business.
“Arizona’s small-business owners are delighted to see tax conformity between the federal and state codes soon to be settled law once Governor Ducey signs the legislation in HB 2757.
“We would have preferred alignment with the federal Tax Cuts and Jobs Act sooner and for it to have included the 2018 tax year, but the legislation adopted will move us forward. By aligning the state tax code with the changes made by the federal Tax Cuts and Jobs Act, the smallest businesses will benefit from the increases in the standard deduction and the reduction of five income tax brackets to four.
“It was also good to see Arizona get closer to having a single statewide retail sales tax base. The policy adopted will help simplify the taxation of online sales made by remote sellers. Business compliance and administration will be easier because of what the Legislature adopted. Because Arizona has one of the most complex sales tax systems in the country, policy changes required more consideration following the U.S. Supreme Court’s Wayfair decision which allowed states to tax online sales from out-of-state sellers.
“Through the decades Arizona wound up with 92 separate retail sales tax codes, which is a confusing enough compliance headache. Overlay that with the growing use of online sales, and the headache became a migraine. Moving closer to one set of rules will be a huge relief for retail businesses selling products online.”
Keep up with the latest on Arizona small business at www.nfib.com/arizona and by following NFIB on Twitter @NFIB_AZ
For more than 75 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.
24 W. Camelback Rd. #A252
Phoenix, AZ 85013
Photo courtesy of the Arizona State Legislature webpage.