The Main Stream

May 12, 2012 10:04 AM

Governor signs bill to eliminate tax reporting requirement

PHOENIX (AP) - Gov. Jan Brewer has signed a bill repealing a year-old law requiring that state income tax returns report and pay sales tax on online purchases.

The bill doesn't repeal the obligation to pay what's formally known as use tax.

But by repealing the requirement to report it on income tax returns, the state is backing away from making it harder to skip paying sales tax on online purchases.

Some people had said the reporting requirement was burdensome because they didn't track whether sales tax was collected for online purchases.

The reporting requirement was on the income tax form used for 2011 taxes. The repeal takes effect with 2012 so the line won't be on returns filed next spring.

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