Arizona excludes your marketplace sales from its own nexus math.

The Bottom Line for Arizona eBay Sellers

Arizona's Department of Revenue draws the cleanest marketplace-seller line of any state in this cluster: if every dollar you make runs through a marketplace facilitator, you're told directly you don't need a Transaction Privilege Tax license, and the same facilitator exclusion applies when Arizona calculates whether you've crossed its remote-seller threshold. An LLC doesn't change either answer. It changes what happens to your house if a supplier dispute or an audit ever reaches past the marketplace transactions into something you did on your own.

What Arizona calls a sales tax is legally a privilege tax on the seller for the right to transact business in the state, a structural distinction that usually complicates things but here works in a marketplace seller's favor. The state's own FAQ answers the registration question by name for exactly this scenario, and its nexus statute carves marketplace-facilitated sales out of a remote seller's own threshold calculation by definition, not by interpretation. That's a notable contrast with states where the marketplace exclusion depends on an ongoing condition, such as the facilitator maintaining active documentation of its own collection duty; Arizona's statute simply defines the threshold to never include those sales in the first place, which is a cleaner and more durable answer for a seller trying to plan around it.

If every one of your sales into Arizona runs through eBay, you do not need your own Arizona sales-tax registration — eBay is the one collecting and remitting. Arizona excludes marketplace-facilitated sales when measuring your own $100,000 threshold — your eBay sales do not count against it. Arizona uses the federal reporting threshold, so eBay issues a 1099-K once you pass $20,000 and 200 transactions.

eBay Collects Arizona Sales Tax. What Is Still Yours?

If every one of your sales into Arizona runs through eBay, you do not need your own Arizona sales-tax registration — eBay is the one collecting and remitting.

Arizona's Department of Revenue FAQ for remote sellers and marketplace facilitators answers this without hedging: a seller who sells only through a marketplace facilitator doesn't need a TPT license, because the facilitator is the one documented as collecting and remitting. You can still choose to register voluntarily, which some sellers do to deduct marketplace-collected receipts on a return they're filing anyway for other reasons, but it's optional, not a requirement waiting to catch a marketplace-only seller off guard. That changes the instant you sell independently of a marketplace, at which point the ordinary TPT licensing duty attaches to those sales specifically.

Do Your eBay Sales Count Toward Arizona's Nexus Test?

Arizona excludes marketplace-facilitated sales when measuring your own $100,000 threshold — your eBay sales do not count against it.

Arizona's remote-seller statute defines the threshold itself around sales not facilitated by a marketplace facilitator. The exclusion isn't a policy interpretation layered on top of the law; it's written into the definition the threshold uses. That's a genuinely different posture than states where a facilitator exclusion depends on the marketplace meeting some ongoing documentation condition. Here, marketplace-facilitated sales are simply outside the calculation from the start, because Arizona's law already assumes the facilitator is separately meeting its own threshold on those same sales. Track only your independent, off-marketplace sales against Arizona's number.

Arizona's 1099-K Threshold

Arizona uses the federal reporting threshold, so eBay issues a 1099-K once you pass $20,000 and 200 transactions.

Arizona's approach to the 1099-K is unusual: the state doesn't run a form-specific dollar or transaction test at all. What actually triggers an Arizona filing is whether Arizona income tax was withheld on the payment, a criterion built for wage and dividend reporting, not marketplace payouts, and one that essentially never applies to eBay's payments to sellers. Notably, Form 1099-K isn't even among the forms Arizona currently accepts for electronic 1099 submission, so the unusual case that does trigger the requirement gets filed on paper. For an ordinary eBay seller, that translates into no separate Arizona filing to think about beyond the federal form itself.

Buying Inventory to Resell in Arizona

Arizona accepts a resale certificate issued by another state, so you can buy inventory for resale without registering here first.

Arizona's TPT is a vendor privilege tax, not a traditional sales tax, but the state's own official resale certificate (Form 5000A) explicitly allows a purchaser to substitute another state's Sales Tax License number for an Arizona TPT license number when claiming the resale exemption.

Arizona's own resale certificate, Form 5000A, has a single license-number field that accepts either an Arizona TPT number or another state's sales tax license, built-in flexibility that means a reseller already registered elsewhere doesn't need a second Arizona registration just to buy wholesale here. On the secondhand side, Arizona's statewide dealer-licensing statutes are narrow by design: one article covers pawnbrokers taking pledged collateral, another covers scrap metal dealers specifically, and neither reaches an ordinary reseller of used clothing, electronics or collectibles. Phoenix and Tempe both run their own municipal secondhand-dealer licenses, so general resale licensing in Arizona is a city question, not a state one. Check your own municipality rather than assuming the state's narrow statutes are the whole picture. If you also hold a voluntary TPT license for the deduction reason described above, keep your marketplace-facilitated receipts and your independent receipts in separate ledger columns from day one, since the return itself requires that split and reconstructing it after the fact from mixed records is tedious.

Arizona leaves second-hand dealer licensing to cities and counties, so check your own. Read the Arizona Revised Statutes Title 44, Chapter 11 ('Regulations Concerning Particular Businesses,' §§ 44-1601-44-1799.96) table of contents directly from azleg.gov: Article 3 covers pawnbrokers/pawnshops (loan-secured pledges; §§ 44-1601 to 44-1632, including §44-1632 which expressly leaves pawnshop hours to city/town ordinance) and Article 3.1 covers scrap metal dealers (§44-1641 et seq., confirmed by pdftotext of the statute page: scrap metal dealers are defined as buyers of 'secondhand or castoff material... commonly known as scrap metal'). No general 'secondhand dealers' article exists in Title 44 reaching ordinary used-goods resale. Consistent with that gap, Phoenix and Tempe each administer their own municipal secondhand-dealer license ordinances, indicating Arizona leaves general secondhand-dealer licensing to individual cities/counties rather than a state statute.

Setting Up to Sell on eBay from Arizona

1. Confirm every sale runs through a participating marketplace before skipping TPT registration

   If any part of your Arizona business happens off eBay, that portion needs its own registration analysis separate from the marketplace-only relief.

2. Track your off-marketplace sales separately against Arizona's threshold

   Arizona's law only counts sales made outside a marketplace facilitator, so keep a running total of that column specifically.

3. Form the LLC before you add a second sales channel

   Filing while your operation is still simple avoids retrofitting a business structure onto years of transaction history later.

4. Use Form 5000A's flexible license field when buying wholesale

   Arizona's own resale certificate accepts an out-of-state sales tax license number, so a supplier request doesn't necessarily mean opening a new Arizona account.

5. Check your own city's secondhand-dealer rules if you deal in used goods

   Arizona's state statutes are narrow, but Phoenix, Tempe and other cities run their own municipal licensing programs worth checking directly.

Who to Ask in Arizona

The Arizona Department of Revenue's remote-seller and marketplace-facilitator FAQ is unusually direct and worth reading in full before you assume anything. For anything involving a physical secondhand-goods storefront or license, your city clerk's office, such as those Phoenix and Tempe both publish, is the office actually administering that requirement, not the state. Arizona's e-file portal is also worth checking directly if you ever do owe a paper 1099 filing, since Form 1099-K's absence from the state's supported electronic forms list is easy to miss until a deadline is close.

Sources

• https://azdor.gov/business/transaction-privilege-tax-tpt/retail-sales-subject-tpt/out-state-sellers/frequently-asked-questions
• https://www.azleg.gov/ars/42/05044.htm
• https://azdor.gov/sites/default/files/2023-03/PUBLICATION_701.pdf
• https://azdor.gov/e-file-process/e-services-w-2-1099
• https://azdor.gov/sites/default/files/2023-03/FORMS_TPT_5000A_10316_0.pdf
• https://www.azleg.gov/ars/44/01641.htm
• https://www.phoenix.gov/administration/departments/cityclerk/programs-services/license-services/vending/secondhand-dealers.html
• https://www.tempe.gov/government/financial-services/sales-tax-licensing/regulatory-licenses/second-hand-dealer
• https://www.irs.gov/instructions/i1099k

Federal 1099-K threshold: IRC § 6050W(e), as amended by § 70432(a) of the One, Big, Beautiful Bill Act (P.L. 119-21, July 4, 2025). A third-party settlement organization such as eBay must file Form 1099-K only if BOTH tests are met for the calendar year: gross payments exceed $20,000 AND the number of transactions exceeds 200. These are the figures for tax year 2026. There is no forward phase-in: § 70432(a) takes effect "as if included in section 9674 of the American Rescue Plan Act," so the same $20,000 / 200 figures apply retroactively to calendar years after 2021 (tax years 2022 through 2026 alike). The $600 threshold enacted by ARPA § 9674 (P.L. 117-2) was repealed before it operated, and the IRS transition-relief thresholds previously announced for 2024 and 2025 are superseded. A platform may issue a 1099-K below these figures, and a state may set a lower TPSO threshold, in which case a seller can receive a 1099-K without meeting the federal test.. Verified 2026-08-08.