TPT; online lodging marketplace; reporting

HB2568 - 572R - I Ver

REFERENCE TITLE:
TPT; online lodging marketplace; reporting

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2568

Introduced by

Representatives
Contreras P: Crews, Liguori, Simacek, Stahl Hamilton

AN
ACT

amending sections 42-2003, 42-5014
and 42-6009, Arizona Revised Statutes; relating to online lodging
marketplaces.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 42-2003, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-2003.

Authorized disclosure of confidential information

A. Confidential information relating to:

1. A taxpayer may be disclosed to the taxpayer, its
successor in interest or a designee of the taxpayer who is authorized in
writing by the taxpayer. A principal corporate officer of a parent
corporation may execute a written authorization for a controlled
subsidiary. If a taxpayer elects to file an Arizona small business
income tax return under section 43-302, a written authorization by the
taxpayer to allow the department to disclose personal income tax information to
a designee includes the corresponding Arizona small business income tax return.

2. A corporate taxpayer may be disclosed to any
principal officer, any person designated by a principal officer or any person
designated in a resolution by the corporate board of directors or other similar
governing body. If a corporate officer signs a statement under
penalty of perjury representing that the officer is a principal officer, the
department may rely on the statement until the statement is shown to be false.�
For the purposes of this paragraph, "principal officer" includes a
chief executive officer, president, secretary, treasurer, vice president of
tax, chief financial officer, chief operating officer or chief tax officer or
any other corporate officer who has the authority to bind the taxpayer on
matters related to state taxes.

3. A partnership may be disclosed to any partner of
the partnership.� This exception does not include disclosure of confidential
information of a particular partner unless otherwise authorized.

4. A limited liability company may be disclosed to
any member of the company or, if the company is manager-managed, to any
manager.

5. An estate may be disclosed to the personal
representative of the estate and to any heir, next of kin or beneficiary under
the will of the decedent if the department finds that the heir, next of kin or
beneficiary has a material interest that will be affected by the confidential
information.

6. A trust may be disclosed to the trustee or
trustees, jointly or separately, and to the grantor or any beneficiary of the
trust if the department finds that the grantor or beneficiary has a material
interest that will be affected by the confidential information.

7. A government entity may be disclosed to the head
of the entity or a member of the governing board of the entity, or any employee
of the entity who has been delegated the authorization in writing by the head
of the entity or the governing board of the entity.

8. Any taxpayer may be disclosed if the taxpayer has
waived any rights to confidentiality either in writing or on the record in any
administrative or judicial proceeding.

9. The name and taxpayer identification numbers of
persons issued direct payment permits may be publicly disclosed.

10. Any taxpayer may be disclosed during a meeting
or telephone call if the taxpayer is present during the meeting or telephone
call and authorizes the disclosure of confidential information.

B. Confidential information may be disclosed to:

1. Any employee of the department whose official
duties involve tax administration.

2. The office of the attorney general solely for its
use in preparation for, or in an investigation that may result in, any
proceeding involving tax administration before the department or any other
agency or board of this state, or before any grand jury or any state or federal
court.

3. The department of liquor licenses and control for
its use in determining whether a spirituous liquor licensee has paid all
transaction privilege taxes and affiliated excise taxes incurred as a result of
the sale of spirituous liquor, as defined in section 4-101, at the
licensed establishment and imposed on the licensed establishments by this state
and its political subdivisions.

4. Other state tax officials whose official duties
require the disclosure for proper tax administration purposes if the
information is sought in connection with an investigation or any other
proceeding conducted by the official.� Any disclosure is limited to information
of a taxpayer who is being investigated or who is a party to a proceeding
conducted by the official.

5. The following agencies, officials and
organizations, if they grant substantially similar privileges to the department
for the type of information being sought, pursuant to statute and a written
agreement between the department and the foreign country, agency, state, Indian
tribe or organization:

(a) The United States internal revenue service,
alcohol and tobacco tax and trade bureau of the United States treasury, United
States bureau of alcohol, tobacco, firearms and explosives of the United States
department of justice, United States drug enforcement agency and federal bureau
of investigation.

(b) A state tax official of another state.

(c) An organization of states, federation of tax
administrators or multistate tax commission that operates an information
exchange for tax administration purposes.

(d) An agency, official or organization of a foreign
country with responsibilities that are comparable to those listed in
subdivision (a), (b) or (c) of this paragraph.

(e) An agency,
official or organization of an Indian tribal government with responsibilities
comparable to the responsibilities of the agencies, officials or organizations
identified in subdivision (a), (b) or (c) of this paragraph.

6. The auditor general, in connection with any audit
of the department subject to the restrictions in section 42-2002,
subsection D.

7. Any person to the extent necessary for effective
tax administration in connection with:

(a) The processing, storage, transmission,
destruction and reproduction of the information.

(b) The programming, maintenance, repair, testing
and procurement of equipment for purposes of tax administration.

(c) The collection of the taxpayer's civil
liability.

8. The office of administrative hearings relating to
taxes administered by the department pursuant to section 42-1101, but the
department shall not disclose any confidential information without the
taxpayer's written consent:

(a) Regarding income tax or withholding tax.

(b) On any tax issue relating to information
associated with the reporting of income tax or withholding tax.

9. The United States treasury inspector general for
tax administration for the purpose of reporting a violation of internal revenue
code section 7213A (26 United States Code section 7213A), unauthorized
inspection of returns or return information.

10. The financial management service of the United
States treasury department for use in the treasury offset program.

11. The United States treasury department or its
authorized agent for use in the state income tax levy program and in the
electronic federal tax payment system.

12. The Arizona commerce authority for its use in:

(a) Qualifying renewable energy operations for the
tax incentives under section 42-12006.

(b) Qualifying businesses with a qualified facility
for income tax credits under sections 43-1083.03 and 43-1164.04.

(c) Fulfilling its annual reporting responsibility
pursuant to section 41-1512, subsections U and V and section 41-1517,
subsection L.

(d) Certifying computer data centers for tax relief
under section 41-1519.

(e) Certifying applicants for the tax credit for
motion picture production costs under sections 43-1082 and 43-1165.

13. A prosecutor for purposes of section 32-1164,
subsection C.

14. The office of the state fire marshal for use in
determining compliance with and enforcing title 37, chapter 9, article 5.

15. The department of transportation for its use in
administering taxes, surcharges and penalties prescribed by title 28.

16. The Arizona health care cost containment system
administration for its use in administering nursing facility provider
assessments.

17. The department of administration risk management
division and the office of the attorney general if the information relates to a
claim against this state pursuant to section 12-821.01 involving the
department of revenue.

18. Another state agency if the taxpayer authorizes
the disclosure of confidential information in writing, including an
authorization that is part of an application form or other document submitted
to the agency.

19. The department of economic security for its use
in determining whether an employer has paid all amounts due under the
unemployment insurance program pursuant to title 23, chapter 4.

20. The department of health services for its use in
determining the following:

(a) Whether a medical marijuana dispensary is in
compliance with the tax requirements of chapter 5 of this title for the
purposes of section 36-2806, subsection A.

(b) Whether a marijuana establishment, marijuana
testing facility or dual licensee licensed under title 36, chapter 28.2 is in
compliance with the tax obligations under this title or title 43.

21. The Arizona department of agriculture for the
purpose of ascertaining compliance with the licensing provisions in title 3.

22. The office of economic opportunity for the
purpose of performing the duties and obligations to or on behalf of this state
prescribed by title 41, chapter 53.

C. Confidential information may be disclosed in any
state or federal judicial or administrative proceeding pertaining to tax
administration pursuant to the following conditions:

1. One or more of the following circumstances must
apply:

(a) The taxpayer is a party to the proceeding.

(b) The proceeding arose out of, or in connection
with, determining the taxpayer's civil or criminal liability, or the collection
of the taxpayer's civil liability, with respect to any tax imposed under this
title or title 43.

(c) The treatment of an item reflected on the
taxpayer's return is directly related to the resolution of an issue in the
proceeding.

(d) Return information directly relates to a
transactional relationship between a person who is a party to the proceeding
and the taxpayer and directly affects the resolution of an issue in the
proceeding.

2. Confidential information may not be disclosed
under this subsection if the disclosure is prohibited by section 42-2002,
subsection C or D.

D. Identity information may be disclosed for
purposes of notifying persons entitled to tax refunds if the department is
unable to locate the persons after reasonable effort.

E. The department, on the request of any person,
shall provide the names and addresses of bingo licensees as defined in section
5-401, verify whether or not a person has a privilege license and number,
a tobacco product distributor's license and number or a withholding license and
number or disclose the information to be posted on the department's website or
otherwise publicly accessible pursuant to section 42-1124, subsection F
and section 42-3401.

F. A department employee, in connection with the
official duties relating to any audit, collection activity or civil or criminal
investigation, may disclose return information to the extent that disclosure is
necessary to obtain information that is not otherwise reasonably
available. These official duties include the correct determination
of and liability for tax, the amount to be collected or the enforcement of
other state tax revenue laws.

G. Confidential information relating to transaction
privilege tax, use tax, severance tax, jet fuel excise and use tax and any
other tax collected by the department on behalf of any jurisdiction may be
disclosed to any county, city or town tax official if the information relates
to a taxpayer who is or may be taxable by a county, city or town or who may be
subject to audit by the department pursuant to section 42-6002. Any
taxpayer information that is released by the department to the county, city or
town:

1. May be used only for internal purposes, including
audits and communication with taxpayers for the purposes of the notice required
by section 9-499.15, subsection C. If there is a legitimate
business need relating to enforcing laws, regulations and ordinances pursuant
to section 9-500.39 or 11-269.17, a county, city or town tax
official may redisclose transaction privilege tax information relating to a
vacation rental or short-term rental property owner or online lodging
operator from the new license report and license update report, subject to the
following:

(a) The information redisclosed is limited to the
following:

(i) The transaction privilege tax license number.

(ii) The type of organization or ownership of the
business.

(iii) The legal business name and doing business as
name, if different from the legal name.

(iv) The business mailing address, tax record
physical location address, telephone number, email address and fax number.

(v) The date the business started in this state, the
business description and the North American industry classification system
code.

(vi) The name, address and telephone number for each
owner, partner, corporate officer, member, managing member or official of the
employing unit.

(b) Redisclosure is limited to nonelected officials
in other units within the county, city or town. The information may
not be redisclosed to an elected official or the elected official's staff.

(c) All redisclosures of confidential information
made pursuant to this paragraph are subject to paragraph 2 of this subsection.

2. May not be disclosed to the public in any manner
that does not comply with confidentiality standards established by the
department. The county, city or town shall agree in writing with the
department that any release of confidential information that violates the
confidentiality standards adopted by the department will result in the
immediate suspension of any rights of the county, city or town to receive
taxpayer information under this subsection.

H. The department may disclose statistical
information gathered from confidential information if it does not disclose
confidential information attributable to any one taxpayer.� The department may
disclose statistical information gathered from confidential information, even
if it discloses confidential information attributable to a taxpayer, to:

1. The state treasurer in order to comply with the
requirements of section 42-5029, subsection A, paragraph 3.

2. The joint legislative income tax credit review
committee, the joint legislative budget committee staff and the legislative
staff in order to comply with the requirements of section 43-221.

I. The department may disclose the aggregate amounts
of any tax credit, tax deduction or tax exemption enacted after January 1,
1994. Information subject to disclosure under this subsection shall not be
disclosed if a taxpayer demonstrates to the department that such information
would give an unfair advantage to competitors.

J. Except as provided in section 42-2002,
subsection C, confidential information, described in section 42-2001,
paragraph 1, subdivision (a), item (ii), may be disclosed to law enforcement
agencies for law enforcement purposes.

K. The department may provide transaction privilege
tax license information to property tax officials in a county for the purpose
of identification and verification of the tax status of commercial property.

L. The department may provide transaction privilege
tax, luxury tax, use tax, property tax and severance tax information to the
ombudsman-citizens aide pursuant to title 41, chapter 8, article 5.

M. Except as provided in section 42-2002,
subsection D, a court may order the department to disclose confidential
information pertaining to a party to an action.� An order shall be made only on
a showing of good cause and that the party seeking the information has made
demand on the taxpayer for the information.

N. This section does
not prohibit the disclosure by the department of any information or documents
submitted to the department by a bingo licensee.� Before disclosing the
information, the department shall obtain the name and address of the person
requesting the information.

O. If the department is required or allowed to
disclose confidential information, it may charge the person or agency
requesting the information for the reasonable cost of its services.

P. Except as provided in section 42-2002,
subsection D, the department of revenue shall release confidential information
as requested by the department of economic security pursuant to section 42-1122
or 46-291. Information disclosed under this subsection is
limited to the same type of information that the United States internal revenue
service is authorized to disclose under section 6103(l)(6) of the internal
revenue code.

Q. Except as provided in section 42-2002,
subsection D, the department shall release confidential information as
requested by the courts and clerks of the court pursuant to section 42-1122.

R. To comply with the requirements of section 42-5031,
the department may disclose to the state treasurer, to the county stadium
district board of directors and to any city or town tax official that is part
of the county stadium district confidential information attributable to a
taxpayer's business activity conducted in the county stadium district.

S. The department shall release to the attorney
general confidential information as requested by the attorney general for
purposes of determining compliance with or enforcing any of the following:

1. Any public health control law relating to tobacco
sales as provided under title 36, chapter 6, article 14.

2. Any law relating to reduced cigarette ignition
propensity standards as provided under title 37, chapter 9, article 5.

3. Sections 44-7101 and 44-7111, the
master settlement agreement referred to in those sections and all agreements
regarding disputes under the master settlement agreement.

T. For proceedings before the department, the office
of administrative hearings, the state board of tax appeals or any state or
federal court involving penalties that were assessed against a return preparer,
an electronic return preparer or a payroll service company pursuant to section
42-1103.02, 42-1125.01 or 43-419, confidential information
may be disclosed only before the judge or administrative law judge adjudicating
the proceeding, the parties to the proceeding and the parties' representatives
in the proceeding prior to its introduction into evidence in the
proceeding. The confidential information may be introduced as
evidence in the proceeding only if the taxpayer's name, the names of any
dependents listed on the return, all social security numbers, the taxpayer's
address, the taxpayer's signature and any attachments containing any of the
foregoing information are redacted and if either:

1. The treatment of an item reflected on such a
return is or may be related to the resolution of an issue in the proceeding.

2. Such a return or the return information relates
or may relate to a transactional relationship between a person who is a party
to the proceeding and the taxpayer that directly affects the resolution of an
issue in the proceeding.

3. The method of payment of the taxpayer's
withholding tax liability or the method of filing the taxpayer's withholding
tax return is an issue for the period.

U. The department and attorney general may share the
information specified in subsection S of this section with any of the
following:

1. Federal, state or local agencies located in this
state for the purposes of enforcement of the statutes or agreements specified
in subsection S of this section or for the purposes of enforcement of
corresponding laws of other states.

2. Indian tribes located in this state for the
purposes of enforcement of the statutes or agreements specified in subsection S
of this section.

3. A court, arbitrator, data clearinghouse or
similar entity for the purpose of assessing compliance with or making
calculations required by the master settlement agreement or agreements
regarding disputes under the master settlement agreement, and with counsel for
the parties or expert witnesses in any such proceeding, if the information
otherwise remains confidential.

V. The department may provide the name and address
of qualifying hospitals and qualifying health care organizations, as defined in
section 42-5001, to a business that is classified and reporting
transaction privilege tax under the utilities classification.

W. The department may disclose to an official of any
city, town or county in a current agreement or considering a prospective
agreement with the department as described in section 42-5032.02,
subsection G any information relating to amounts that are subject to
distribution and that are required by section 42-5032.02. Information
disclosed by the department under this subsection:

1. May be used only by the city, town or county for
internal purposes.

2. May not be disclosed to the public in any manner
that does not comply with confidentiality standards established by the
department. The city, town or county must agree with the department
in writing that any release of confidential information that violates the
confidentiality standards will result in the immediate suspension of any rights
of the city, town or county to receive information under this subsection.

X. Notwithstanding any other provision
of this section, the department may not disclose information provided by an
online lodging marketplace, as defined in section 42-5076, without the
written consent of the online lodging marketplace, and the information may be
disclosed only pursuant to subsection A, paragraphs 1 through 6, 8 and 10,
subsection B, paragraphs 1, 2, 7 and 8 and subsections C, D and G of this
section.� Such information:

1. Is not subject to disclosure
pursuant to title 39, relating to public records.

2. May not be disclosed to any agency
of this state or of any county, city, town or other political subdivision of
this state.

END_STATUTE

Sec. 2. Section 42-5014, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-5014.

Return and payment of tax; estimated tax; extensions; abatements;
definitions

A. Except as provided in subsection B, C, D, E or F
of this section, the taxes levied under this article:

1. Are due and payable monthly in the form required
by section 42-5018 for the amount of the tax, to the department, on or
before the twentieth day of the month next succeeding the month in which the
tax accrues.

2. Are delinquent as follows:

(a) For taxpayers that are required or elect to file
and pay electronically in any month, if not received by the department on or
before the last business day of the month.

(b) For all other taxpayers, if not received by the
department on or before the business day preceding the last business day of the
month.

B. The department, for any taxpayer whose estimated
annual liability for taxes imposed or administered by this article or chapter 6
of this title is between $2,000 and $8,000, shall authorize the taxpayer
to pay the taxes on a quarterly basis. The department, for any
taxpayer whose estimated annual liability for taxes imposed by this article is
less than $2,000, shall authorize the taxpayer to pay the taxes on an annual
basis.� For the purposes of this subsection, the taxes due under this article:

1. For taxpayers that are authorized to pay on a
quarterly basis, are due and payable monthly in the form required by section 42-5018
for the amount of the tax, to the department, on or before the twentieth day of
the month next succeeding the quarter in which the tax accrues.

2. For taxpayers that are authorized to pay on an
annual basis, are due and payable monthly in the form required by section 42-5018
for the amount of the tax, to the department, on or before the twentieth day of
January next succeeding the year in which the tax accrues.

3. Are delinquent as
follows:

(a) For taxpayers
that are required or elect to file and pay electronically in any quarter, if
not received by the department on or before the last business day of the month.

(b) For all other taxpayers that are required to
file and pay quarterly, if not received by the department on or before the
business day preceding the last business day of the month.

(c) For taxpayers that are required or elect to file
and pay electronically on an annual basis, if not received by the department on
or before the last business day of January.

(d) For all other taxpayers that are required to
file and pay annually, if not received by the department on or before the
business day preceding the last business day of January.

C. The department may require a taxpayer whose
business is of a transient character to file the return and remit the taxes
imposed by this article on a daily, a weekly or a transaction-by-transaction
basis, and those returns and payments are due and payable on the date fixed by
the department without a grace period otherwise allowed by this
section. For the purposes of this subsection, "business of a
transient character" means sales activity by a taxpayer not regularly engaged
in selling within this state that is conducted from vehicles, portable stands,
rented spaces, structures or booths, or concessions at fairs, carnivals,
circuses, festivals or similar activities for not more than thirty consecutive
days.

D. If the business entity under which a taxpayer
reports and pays income tax under title 43 has an annual total tax liability
under this article, article 6 of this chapter and chapter 6, article 3 of this
title of $1,000,000 or more in 2019, $1,600,000 or more in 2020, $2,300,000 or
more in 2021, $3,100,000 or more in 2022 or $4,100,000 or more in 2023 and each
year thereafter, based on the actual tax liability in the preceding calendar
year, regardless of the number of offices at which the taxes imposed by this
article, article 6 of this chapter or chapter 6, article 3 of this title are
collected, or if the taxpayer can reasonably anticipate such liability in the
current year, the taxpayer shall report on a form prescribed by the department
and pay an estimated tax payment each June.� Any other taxpayer may voluntarily
elect to pay the estimated tax payment pursuant to this
subsection. The payment shall be made on or before June 20 in
the same manner as the taxpayer is required to make regular payments and is
delinquent if not received by the department on or before the last business day
of June if the taxpayer is required to make the payment by electronic means, is
delinquent on or before the business day preceding the last business day of
June for those taxpayers allowed to file by mail or is delinquent if not
received by the department on the business day preceding the last business day
of June for those taxpayers allowed to file in person. The estimated
tax paid shall be credited against the taxpayer's tax liability under this
article, article 6 of this chapter and chapter 6, article 3 of this title for
the month of June for the current calendar year. The estimated tax
payment shall equal either:

1. One-half of the actual tax liability under
this article plus one-half of any tax liability under article 6 of this
chapter and chapter 6, article 3 of this title for May of the current calendar
year.

2. The actual tax liability under this article plus
any tax liability under article 6 of this chapter and chapter 6, article 3 of
this title for the first fifteen days of June of the current calendar year.

E. An online lodging marketplace, as defined in
section 42-5076, that is registered with the department pursuant to
section 42-5005, subsection L:

1. Shall remit to the department the applicable
taxes payable pursuant to section 42-5076 and chapter 6 of this title
with respect to each online lodging transaction, as defined in section 42-5076,
facilitated by the online lodging marketplace.

2. Shall report the taxes monthly and remit the
aggregate total amounts for each of the respective taxing jurisdictions.

3. Shall
not be required to

list
on the return or on an attachment to the return the
following information for each online lodging transaction, as defined in
section 42-5076:

(
a
) The
transaction privilege tax license number.

(
b
) THe
property address.

(
c
) The aMOUNT
of tax collected on behalf of

or otherwise identify any

the
individual online lodging operator, as defined in
section 42-5076
, on any return or any attachment to
a� return
.

F. A person who is licensed pursuant to title 32,
chapter 20 and who is licensed with the department pursuant to section 42-5005,
subsection M shall:

1. File a consolidated return monthly with respect
to all managed properties for which the licensee files an electronic
consolidated tax return pursuant to section 42-6013.

2. Remit to the department the aggregate total
amount of the applicable taxes payable pursuant to this chapter and chapter 6
of this title for all of the respective taxing jurisdictions with respect to
the managed properties.

G. A peer-to-peer car sharing program that is
licensed by the department pursuant to section 42-5005,
subsection N:

1. Shall electronically remit to the department the
applicable taxes pursuant to section 42-5071 and chapter 6 of this title
and any additional taxes, fees or charges on the gross proceeds or gross income
of a shared vehicle transaction, subject to the limitations in section 28-9616,
and, if the peer-to-peer car sharing program allows owners of vehicles that are
not individual-owned shared vehicles to use the peer-to-peer
car sharing program, applicable surcharges pursuant to sections 5-839 and 48-4234.

2. Shall electronically report the taxes monthly and
remit the aggregate total amounts for each respective taxing jurisdiction.

3. Is not required to list or otherwise identify an
individual-owned shared vehicle on any return or any attachment to a
return.� The peer-to-peer car sharing program shall retain
surcharge and tax information for each peer-to-peer car sharing
program transaction and shall provide the information to the department at the
department's request.

H. The remittance of transaction privilege tax and
any other tax applicable to a shared vehicle transaction by a peer-to-peer car
sharing program fully satisfies any obligation of a shared vehicle owner to
remit any taxes applicable to the shared vehicle transaction.

I. The taxpayer shall prepare a return showing the
amount of the tax for which the taxpayer is liable for the preceding month
,
and shall mail or deliver the return to the department
in the same manner and time as prescribed for the payment of taxes in
subsection A of this section.� If the taxpayer fails to file the return in the
manner and time as prescribed for the payment of taxes in subsection A of this
section, the amount of the tax required to be shown on the return is subject to
the penalty imposed pursuant to section 42-1125, subsection X, without
any reduction for taxes paid on or before the due date of the return.� The
return shall be verified by the oath of the taxpayer or an authorized agent or
as prescribed by the department pursuant to section 42-1105, subsection
B.

J. Any person who is taxable under this article and
who makes cash and credit sales shall report the cash and credit sales
separately and may apply for and obtain from the department an extension of
time to pay taxes due on the credit sales. The department shall
grant the extension under such rules as the department
prescribes. When the extension is granted, the taxpayer shall
thereafter include in each monthly report all collections made on such credit
sales during the month next preceding and shall pay the taxes due at the time
of filing such a report.

K. The returns required under this article shall be
made on forms prescribed by the department and shall capture data with
sufficient specificity to meet the needs of all taxing jurisdictions.

L. Any person who is engaged in or conducting
business in two or more locations or under two or more business names shall
file the return required under this article using an electronic filing program
established by the department.

M. For taxable periods beginning from and after
December 31, 2017, any taxpayer with an annual total tax liability under this
chapter and chapter 6 of this title of $20,000 or more, based on the actual tax
liability in the preceding calendar year, regardless of the number of offices
at which the taxes imposed by this chapter or chapter 6 of this title are
collected, or a taxpayer that can reasonably anticipate that liability in the
current year, shall file the return required under this article using an electronic
filing program established by the department.

N. For taxable periods beginning from and after
December 31, 2018, any taxpayer with an annual total tax liability under this
chapter and chapter 6 of this title of $10,000 or more, based on the actual tax
liability in the preceding calendar year, regardless of the number of offices
at which the taxes imposed by this chapter or chapter 6 of this title are
collected, or a taxpayer that can reasonably anticipate that liability in the
current year, shall file the return required under this article using an electronic
filing program established by the department.

O. For taxable periods beginning from and after
December 31, 2019, any taxpayer with an annual total tax liability under this
chapter and chapter 6 of this title of $5,000 or more, based on the actual tax
liability in the preceding calendar year, regardless of the number of offices
at which the taxes imposed by this chapter or chapter 6 of this title are
collected, or a taxpayer that can reasonably anticipate that liability in the
current year, shall file the return required under this article using an electronic
filing program established by the department.

P. For taxable periods beginning from and after
December 31, 2020, any taxpayer with an annual total tax liability under this
chapter and chapter 6 of this title of $500 or more, based on the actual tax
liability in the preceding calendar year, regardless of the number of offices
at which the taxes imposed by this chapter or chapter 6 of this title are
collected, or a taxpayer that can reasonably anticipate that liability in the
current year, shall file the return required under this article using an electronic
filing program established by the department.

Q. Any taxpayer that is required to report and pay
using an electronic filing program established by the department may apply to
the director, on a form prescribed by the department, for an annual waiver from
the electronic filing requirement.� The director may grant a waiver, which may
be renewed, if any of the following applies:

1. The taxpayer has no computer.

2. The taxpayer has no internet access.

3. Any other circumstance considered to be worthy by
the director exists.

R. A waiver is not required if the return cannot be electronically
filed for reasons beyond the taxpayer's control, including situations in which
the taxpayer was instructed by either the internal revenue service or the
department of revenue to file by paper.

S. The department, for good cause, may extend the
time for making any return required by this article and may grant such
reasonable additional time within which to make the return as it deems proper,
but the time for filing the return shall not be extended beyond the first day
of the third month next succeeding the regular due date of the return.

T. The department, with the approval of the attorney
general, may abate small tax balances if the administration costs exceed the
amount of tax due.

U. For the purposes of subsection D of this section,
"taxpayer" means the business entity under which the business reports
and pays state income taxes regardless of the number of offices at which the
taxes imposed by this article, article 6 of this chapter or chapter 6, article
3 of this title are collected.

V. For the purposes of this section,
"individual-owned shared vehicle", "peer-to-peer
car sharing program", "shared vehicle owner" and "shared
vehicle transaction" have the same meanings prescribed in section 28-9601.

END_STATUTE

Sec. 3. Section 42-6009, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-6009.

Online lodging; definitions

A. Except as provided by this section, a city, town
or other taxing jurisdiction may not levy a transaction privilege, sales, use,
franchise or other similar tax or fee, however denominated, on the business of
operating an online lodging marketplace or, in the case of an online lodging
marketplace that is licensed pursuant to section 42-5005, subsection L,
on any online lodging transaction facilitated by the online lodging marketplace
or on any online lodging operator with respect to any online lodging transaction
for which it has received documentation that the online lodging marketplace has
remitted or will remit the applicable tax to the department pursuant to section
42-5014, subsection E.

B. In the case of an online lodging marketplace that
is licensed pursuant to section 42-5005, subsection L, a city, town or
other taxing jurisdiction may levy a transaction privilege, sales, use,
franchise or other similar tax or fee on an online lodging marketplace from any
activity subject to tax under the model city tax code, with the tax base for an
online
lodging
marketplace being limited pursuant to
section 42-5076, subject to the following conditions:

1. The city, town or other taxing jurisdiction tax
must be administered in a manner that is uniform with the treatment of online
lodging marketplaces, online lodging operators and online lodging transactions
provided by chapter 5 of this title, except that:

(a) The city, town or other taxing jurisdiction tax
rate may be different from the state tax rate prescribed by section 42-5010.

(b) The city, town or other taxing jurisdiction tax
may apply to online lodging transactions involving rentals of lodging
accommodations in the city, town or other taxing jurisdiction for more than
twenty-nine consecutive days. With respect to any tax on rentals of
lodging accommodations for more than twenty-nine consecutive days, in the case
of an online lodging marketplace that has registered pursuant to section 42-5005,
subsection L, the city, town or other taxing jurisdiction tax must uniformly
apply to all lodging accommodations in the city, town or other taxing
jurisdiction for thirty consecutive days or more, and the tax base for the tax
must be limited exclusively to online lodging transactions facilitated by an
online lodging marketplace for rentals of lodging accommodations for thirty
consecutive days or more and located in the applicable city, town or other
taxing jurisdiction.

2. The city, town or other taxing jurisdiction tax
shall be administered, collected and enforced by the department and distributed
to the city, town or other taxing jurisdiction in a uniform manner.

3. The city, town or other taxing jurisdiction tax
imposed on online lodging marketplaces and online lodging operators must be
uniform with all other taxpayers engaging in the same activity within the
jurisdictional boundaries of the city, town or other taxing jurisdiction.

4. Any city, town or other taxing jurisdiction tax
is subject to:

(a) Section 42-6002, relating to audits.

(b) Section 42-2003, subsection
X, relating to confidential information.

(c)
(
b
)
Section 42-5003, subsection B, relating to
judicial enforcement.

(d)
(
c
)
Section 42-5005, subsection L, relating to
registration of online lodging marketplaces.

(e)
(
d
)
Section 42-5014, subsection E, relating to
tax returns.

5. The city, town or other taxing jurisdiction tax
may not be collected from an online lodging operator with respect to any online
lodging transaction or transactions for which the online lodging operator has
received written notice or documentation from a registered online lodging
marketplace that it has remitted or will remit the applicable city, town or
other taxing jurisdiction tax with respect to those transactions to the
department pursuant to section 42-5014, subsection E.

C. For the purposes of this section, "lodging
accommodations", "online lodging marketplace", "online
lodging operator" and "online lodging transaction" have the same
meanings prescribed in section 42-5076.

END_STATUTE