PHOENIX (Feb. 19, 2026) – This week, NFIB Arizona Leadership Council Member Brad Scott testified before the Arizona House Ways and Means Committee in support of House Bill 2290, which would clarify Arizona’s Transaction Privilege Tax Sourcing Law for retail sales. For in-state customers, the bill makes clear that sourcing for retail transaction privilege tax transactions is the business location of the seller, and it defines a business location to further clarify the law.

“I beg of you, make sure remote sellers do not become the norm within Arizona for local businesses, keep us as an origin-based state for in-state sales,” Scott said.

NFIB State Director Chad Heinrich also participated in the hearing, urging lawmakers to pass HB 2290.

“We need clarity, and what our small businesses are at risk of is potential auditors that may not be familiar enough with the law to know that in-state transactions to in-state customers are taxed based on the origin, so we urge you to pass the bill.”

CLICK HERE to view the hearing. [Scott’s testimony begins at the ~1 hour mark, Heinrich testifies immediately afterward.]