Arizona residents will pay a little bit more when shopping online as the state is beginning to collect a sales tax on online purchases.
The new tax, which went into effect this month, affects both online retailers and companies based in other states. The amount shoppers will pay depends on the local sales tax rate.
Gov. Doug Ducey signed the new law May 31.
A representative for the Arizona Chamber of Commerce said the organization supports the tax and cites the belief that it levels the playing field for brick-and-mortar and online retailers.
A 2018 Supreme Court decision, South Dakota v. Wayfair, paved the way for Arizona to expand the tax online. The ruling allowed states to collect sales tax from companies that don't have a physical address in the state.
The Joint Legislative Budget Committee estimates the tax will bring in nearly $60 million in 2020 and roughly $85 million in 2021.
Alerts Sign-up