--- title: "Arizona marketplace facilitator law and 1099-K rules" description: "Arizona marketplaces over $100,000 pay transaction privilege tax for their sellers since Oct 1, 2019; marketplace-only sellers need no TPT license." canonical: https://resellerindex.com/tax/states/arizona/ last_updated: 2026-10-23 publisher: "The Reseller Index" --- [Taxes](https://resellerindex.com/tax/) / [State tax rules](https://resellerindex.com/tax/states/) / Arizona # Selling on eBay, Poshmark or Etsy from Arizona: sales tax and 1099-K rules Since October 1, 2019, a marketplace facilitator with more than $100,000 in Arizona sales reports and pays Arizona's transaction privilege tax (TPT) on the sales it facilitates, and the Arizona Department of Revenue says a seller who sells only through a marketplace facilitator is not required to get a TPT license. Arizona has no 1099-K threshold of its own: the department asks only for Forms 1099 that report Arizona income tax withheld, so the federal test decides whether a platform sends a 1099-K. General information, not tax advice. Check with a tax professional about your own situation. Checked against the official pages listed below on Oct 19, 2026. ## Arizona in short - **General sales tax:** Yes, transaction privilege tax (TPT) - **Marketplace facilitator law:** Yes: A.R.S. § 42-5044 (H.B. 2757, 2019); liability rules in § 42-5043, since Oct 1, 2019 - **When a marketplace must collect:** more than $100,000 in gross proceeds or gross income from its own sales and its marketplace sellers' sales to Arizona customers in the previous or current calendar year (A.R.S. § 42-5044(A)(2)) - **Form 1099-K:** No separate state threshold ## Who collects the tax on a marketplace sale H.B. 2757 requires remote sellers and marketplace facilitators that pass the threshold to file and pay TPT starting with taxable periods from and after October 1, 2019. The marketplace facilitator reports and pays the tax on its marketplace sellers' sales, and should give each seller an exemption certificate (Form 5020) or other documentation saying it will do so. ### If you sell only through marketplaces The department says a seller who only sells through a marketplace facilitator is not required to obtain a TPT license, and should keep the facilitator's exemption certificate or other documentation on file. A seller who keeps a license files TPT returns but deducts the facilitator's sales with deduction code 804. Registration, resale certificates and what changes when you also sell direct have their own page: [Arizona: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/arizona/). The law: [A.R.S. § 42-5044 (H.B. 2757, 2019); liability rules in § 42-5043](https://www.azleg.gov/ars/42/05044.htm), effective Oct 1, 2019. > "No, you are not required to obtain a transaction privilege tax (TPT) license if you only sell through a marketplace facilitator." Arizona Department of Revenue, [FAQ - Remote Sellers and Marketplace Facilitators](https://azdor.gov/business/transaction-privilege-tax-tpt/retail-sales-subject-tpt/out-state-sellers/frequently-asked-questions), Am I required to register and file if I am a marketplace seller? > "If the marketplace facilitator did not provide you with an exemption certificate, and your sales into Arizona otherwise meets the threshold, the income received through the marketplace facilitator will be included in your gross receipts and is taxable." Arizona Department of Revenue, [FAQ - Remote Sellers and Marketplace Facilitators](https://azdor.gov/business/transaction-privilege-tax-tpt/retail-sales-subject-tpt/out-state-sellers/frequently-asked-questions), What happens if the marketplace facilitator has not provided me with an exemption certificate or other proper documentation? Sources: [FAQ - Remote Sellers and Marketplace Facilitators](https://azdor.gov/business/transaction-privilege-tax-tpt/retail-sales-subject-tpt/out-state-sellers/frequently-asked-questions); [A.R.S. § 42-5044, Nexus; out-of-state businesses; threshold](https://www.azleg.gov/ars/42/05044.htm); [A.R.S. § 42-5043, Liability; marketplace facilitators; remote sellers](https://www.azleg.gov/ars/42/05043.htm). ## Arizona's transaction privilege tax (TPT) Arizona's tax on retail sales is the transaction privilege tax (TPT), administered by the Arizona Department of Revenue, with state, county and city rates that depend on where a sale is delivered. The department says sales made through a marketplace facilitator outside Arizona are sourced to the buyer's shipping address (A.R.S. § 42-5040). Sources: [FAQ - Remote Sellers and Marketplace Facilitators](https://azdor.gov/business/transaction-privilege-tax-tpt/retail-sales-subject-tpt/out-state-sellers/frequently-asked-questions). ## Form 1099-K: Arizona and the federal test The Arizona Department of Revenue's withholding guidance asks payers to submit federal Forms 1099 that report Arizona income tax withheld, and says Forms 1099 that report no Arizona withholding are not required to be submitted. The page sets no separate 1099-K threshold, so whether a platform must issue a 1099-K is the federal test. > "Federal Forms W-2G and 1099 NOT reporting Arizona income tax withheld are not required to be submitted to the department." Arizona Department of Revenue, [Withholding Highlights](https://azdor.gov/forms/withholding-highlights), Submitting Federal Forms W-2, W-2c, W-2G and 1099 (with Arizona withholding) to the Department The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." ([Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026). The [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k) count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in [Form 1099-K for resellers](https://resellerindex.com/guides/1099-k-for-resellers/). Sources: [Withholding Highlights](https://azdor.gov/forms/withholding-highlights). ## Worked examples ### A seller with $120,000 of Arizona sales, all on marketplaces Each marketplace counts its own Arizona sales plus its sellers' toward its $100,000 test, and a large marketplace is over it, so the marketplace pays the TPT on these sales. The seller needs no TPT license under the department's FAQ, but keeps each marketplace's exemption certificate or other documentation; without one, and with sales over the threshold, the department says that income would be taxable to the seller. ### Marketplace sales plus $20,000 through your own website A seller with no Arizona physical presence who sells $20,000 to Arizona customers through its own site is under the $100,000 remote seller threshold for its direct sales, which under A.R.S. § 42-5044(A)(1) counts sales not facilitated by a marketplace facilitator. Over $100,000 of direct sales, the department says the seller licenses and reports as a remote seller for those sales. ## Edge cases and details - The threshold for remote sellers stepped down: $200,000 for 2019, $150,000 for 2020 and $100,000 for 2021 and later (A.R.S. § 42-5044(A)(1)). The marketplace facilitator threshold is more than $100,000. - A marketplace facilitator that hasn't met the economic threshold isn't required to provide exemption certificates to its sellers, according to the department's FAQ. - A seller who already had a TPT license and sells only through marketplaces may cancel it after receiving an exemption certificate or other proper documentation from the facilitator, the department says. - The H.B. 2757 rules are not retroactive: the department says remote sellers and marketplace facilitators begin paying TPT on retail sales to Arizona customers starting October 1, 2019. ## What to do 1. Download and keep each marketplace's exemption certificate (Form 5020) or its written statement that it collects Arizona TPT on your sales. 2. If you keep a TPT license because you also sell directly, report marketplace sales and deduct them with code 804, as the department's FAQ describes. 3. If you sell directly to Arizona customers from out of state, track those direct sales against the $100,000 remote seller threshold. 4. For questions on your own sales, the department's E-Commerce Compliance and Outreach team is listed in its FAQ; a tax professional can help with the rest. ## Common questions ### Do I need an Arizona TPT license to sell on marketplaces? Not if you only sell through a marketplace facilitator, according to the Arizona Department of Revenue. Keep the facilitator's exemption certificate or other documentation that it collects and remits the tax on your sales. ### Does Arizona have its own 1099-K threshold? No separate threshold appears on the department's withholding guidance, which says Forms 1099 that report no Arizona income tax withheld are not required to be submitted to it. The federal test decides when a platform must send a 1099-K. ## Related - [Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules](https://resellerindex.com/tax/states/) - [Arizona: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/arizona/) - [Alaska: sales tax and 1099-K rules](https://resellerindex.com/tax/states/alaska/) - [Arkansas: sales tax and 1099-K rules](https://resellerindex.com/tax/states/arkansas/) - [Form 1099-K for resellers: the federal test](https://resellerindex.com/guides/1099-k-for-resellers/) - [Do eBay's fees apply to the sales tax a buyer pays?](https://resellerindex.com/guides/ebay-fees-on-sales-tax/) - [Where each selling app keeps its sales report](https://resellerindex.com/guides/sales-reports-for-taxes/) ## General information, not tax advice This page summarizes Arizona's own published pages and statutes as read on Oct 19, 2026, and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department. ## Sources Official pages this page is built from, with the day each was read. - Arizona Department of Revenue: [FAQ - Remote Sellers and Marketplace Facilitators](https://azdor.gov/business/transaction-privilege-tax-tpt/retail-sales-subject-tpt/out-state-sellers/frequently-asked-questions); read Oct 19, 2026. H.B. 2757 and October 1, 2019 start; marketplace sellers need no TPT license; exemption certificates; deduction code 804; sourcing. - Arizona Legislature: [A.R.S. § 42-5044, Nexus; out-of-state businesses; threshold](https://www.azleg.gov/ars/42/05044.htm); read Oct 19, 2026. Remote seller and marketplace facilitator thresholds. - Arizona Legislature: [A.R.S. § 42-5043, Liability; marketplace facilitators; remote sellers](https://www.azleg.gov/ars/42/05043.htm); read Oct 19, 2026. Facilitator liability relief for seller-provided information. - Arizona Department of Revenue: [Withholding Highlights](https://azdor.gov/forms/withholding-highlights); read Oct 19, 2026. Only Forms 1099 reporting Arizona withholding must be submitted. - IRS: [Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026. The federal 1099-K test. - IRS: [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k), reviewed Jun 1, 2026. Both parts of the federal test counted for the calendar year. Subscribe: https://resellerindex.com/subscribe/ --- The Reseller Index Researched and drafted with AI assistance from each platform's and carrier's own published pages. A full-time reseller runs The Reseller Index and will edit every newsletter issue once the newsletter starts. Every number links to its source and carries the date we checked it. Spot an error? 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