Out-of-State vendor subject to Arizona Transaction Privilege (Sales) and Use Tax.

A corporation engaged in selling and licensing computer hardware and software to nursing homes throughout the US was found to have established sufficient nexus for transaction privilege (sales) tax, even though the corporation did not maintain a place of business within the state. It was determined that the activities performed in the state on behalf of the corporation were significantly associated with the corporation’s ability to establish and maintain a market for sales in Arizona. (Care Computer Systems, Inc., Arizona Court of Appeals, Div. One, No. 1CA-TX 98-0003, July 25, 2000)

Posted on September 15, 2000