arizona: I was under the impression that nexus is required to be established within the state of Arizona, otherwise, the seller is not liable for any state sales tax. Please provide me with links establishing your argument, if possible.|||From the Arizona Department of Revenue website: "Arizona Department of Revenue NEXUS UNIT Transaction Privilege and Use Tax The tax commonly referred to as a "sales tax" is in reality two distinct taxes. The first is the Transaction Privilege Tax, which is a tax on the privilege of doing business in Arizona. It is measured by the value of tangible personal property sold by the vendor in Arizona. The vendor is liable for the tax, even though the vendor may pass on the tax to the consumer. The second is the Use Tax. The Use Tax is a tax on any tangible personal property bought from an out-of-state vendor that is stored, used, or consumed in Arizona on which no tax was paid to the state of sale. The consumer is liable for the Use Tax, however the vendor is responsible for collecting and remitting the tax to the state as long as nexus is established. If a lesser amount of tax was paid to the state of sale than would have been paid had the property had been purchased in Arizona, the consumer is liable for the difference. Determining Transaction Privilege/Use Tax Nexus within Arizona: The following is a general guideline of activities that, if engaged in, may exceed the minimum threshold of nexus and subject the business to the Transaction Privilege Tax, or Use Tax requirements of Arizona: 鈥?Employee present in the state for more than two days per year. 鈥?Ownership or lease of real or personal property in Arizona. 鈥?Maintenance of an office of place of business in Arizona. 鈥?Delivery of merchandise into Arizona on vehicles owned or leased by the taxpayer. 鈥?Independent contractors or other non-employee representatives present in Arizona for more than two days per year for the purpose of establishing and maintaining a market for the taxpayer. Examples of establishing and maintaining a market include: soliciting sales; making repairs; collecting delinquent accounts; delivering property sold to customers; installing products; conducting training for employees or representatives of the company or customers; resolving customers complaints; providing consulting services; soliciting, negotiation, or entering into franchising agreements. " It appears that Arizona requires YOU to collect the use tax from their in-state resident?|||Any state can establish its own rules for nexus and they don't have to be the rules that you are thinking of.|||In the city of Scottsdale AZ, any items sold on the Internet by a Scottsdale based business to AZ residents is taxable http://www.ci.scottsdale.az.us/taxes/tlf鈥?/a> Q. Are Internet sales taxable? If so, at what rate? A. Items sold by Scottsdale based businesses via the Internet to Arizona residents are taxable and reportable to the City at the 1.65% tax rate. The same rule can be expected to apply to the whole state of Arizona. To be sure, contact the Arizona Dept of Revenue Business Taxes (Transaction Privilege/Sales Tax, Use Tax, Withholding, Waste Tire, etc.) and Licensing/Bonds 602 255-2060 Toll-free from 520 or 928 area code 800 843-7196 You can contact the Nexus Unit of AZ http://www.azdor.gov/Audit/nexus.asp Tamra Fucci, Manager (602) 716-6453 Gayla Kressin, Corporate/Individual Nexus (602) 716-6403 Janice Ainsworth, TPT/USE Tax Nexus (602) 716-6533 Alissa Warren, TPT/ UST Tax Nexus (602) 716-6554 or you may send correspondence to : Arizona Department of Revenue Transaction Privilege and Use Tax Nexus Section 5th Floor 1600 W. Monroe Phoenix AZ 85007 AZ Nexus questionnaire http://www.azdor.gov/Audit/auditpdf/Ques鈥?/a>