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Opinion: Ludicrous tax ruling may force us to stop selling auto parts in Arizona

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Opinion: Ludicrous tax ruling may force us to stop selling auto parts in Arizona



An appeals court says we must pay more in state sales taxes than we earned in 20 years selling auto parts to Arizonans, even without a local store.

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I am president of RockAuto, a Wisconsin-based online auto parts store that my family and I started in 1999. 

We ship parts to DIY and professional mechanics worldwide.

Since 2019, when a new law taxing out-of-state businesses took effect, RockAuto has paid Arizona sales taxes, even though we have never had an Arizona store. 

Unsatisfied, the Arizona Department of Revenue recently convinced an appeals court that we were physically present in Arizona before 2019 without knowing it and owed millions of dollars in taxes under the old law. 

Arizona wants more money than we earned

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Somehow, according to the ruling, every Arizona factory and wholesaler selling parts to us became our branch office when we asked them to ship directly to our customers. 

Address labels became stores, refrigerator magnets became salespeople and, magically, RockAuto was in Arizona.

No previous court case has found a retailer “physically present” without employees or assets or someone making in-state contact with customers. 

The revenue department’s own publications even say that “drop-shipping” from Arizona suppliers — asking manufacturers or wholesalers to ship their products directly to a retailer’s customers instead of to the retailer’s store — does not create tax liability. 

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Still, the department persists in demanding six years of taxes (which we didn’t collect from customers) plus interest and penalties — far more money than we earned in 20 years selling auto parts to Arizonans.

We’ve petitioned the Arizona Supreme Court to review the case. The Arizona Tech Council and state Rep. Michael Carbone have written letters pointing out that tax laws come from the Legislature, not the revenue department’s imagination. 

RockAuto may have to stop selling in Arizona

Because Gov. Katie Hobbs did not create this situation (it began before she took office), thousands of our Arizona customers have appealed to her to restrain the department.

Empowered by the appeals court, however, the revenue department has not responded.

To protect the livelihoods of our families from future attack, we’ve stopped buying from Arizona suppliers. We may be forced to stop selling to customers in Arizona. 

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Dismantling relationships that took decades to build is heartrending. But we can’t work for free or live in fear of the next random, retroactive ruling. 

Other online retailers that bought from Arizona suppliers in past decades or today could be next on the department’s hit list. 

Do you or your business depend on any of them?

Jim Taylor is president of RockAuto, an online parts store based in Madison, Wisc. Reach him at service@rockauto.com.



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Arizona

Arizona ‘villain’ Charles Smith arrested after filming himself spray bug killer pesticide on food inside Walmart

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Arizona ‘villain’ Charles Smith arrested after filming himself spray bug killer pesticide on food inside Walmart


A self-described Arizona social media “villain” was arrested after he filmed himself allegedly spraying bed bug killer on groceries inside a Walmart as he boasted to police about his prank videos.

Charles Smith, 27, is accused of grabbing a can of Hot Shot Ultra Bed Bug and Flea Killer and unleashing the pesticide on a series of perishable items in the Mesa, Ariz. megastore around 8:30 p.m. on Dec. 19.

In the now-deleted video, the influencer filmed himself wearing a black hoodie and pink bandana while spraying the toxin on bananas, acorn squash, potatoes, lemons, green apples and Roma tomatoes at the store — located in a neighborhood southeast of Phoenix.

Charles Smith was accused of spraying a bed bug killer on groceries inside a Walmart. ImTheMainCharacter/Reddit

Police claim the TikTokker, who goes by the username WolfieKahletti, intentionally went to the store to film pranks for his channel.

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Smith identifies as an online “troll,” according to court documents viewed by Az Family. He has more than 300,000 followers on TikTok.

The troublemaker allegedly told police that he makes between $6,000 – $10,000 per month filming his provocative prank videos.

”I think social media has got people doing crazy things out here,” Walmart shopper Xavier Griego told the outlet. “It’s unfortunate that somebody would mess up their whole life, potentially, for something on social media for views.”

Smith voluntarily turned himself over to police on Dec. 21.

The prankster reportedly posted the video on his TikTok page with over 300K followers. ImTheMainCharacter/Reddit
Walmart claimed it removed the contaminated items and cleaned the areas that were hit. ImTheMainCharacter/Reddit

He faces charges of introducing poison (a felony) as well as three misdemeanors that include criminal damage, endangerment and theft.

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A spokesperson from Walmart told AZ Family that store employees removed the directly impacted products and cleaned the affected areas of the store.

It’s not clear if any customers were injured from eating the contaminated items.

Smith voluntarily turned himself over to the police on Dec. 21. ImTheMainCharacter/Reddit

“This incident underscores the potential dangers of reckless actions disguised as social media pranks,” the Mesa Police Department said in a statement. 

Other videos posted online by Smith include the posts of him seemingly mixing in bacon and eggs in a stranger’s load at the laundromat as well as locking people inside a different grocery store.

Smith is charged with a felony and three misdemeanors. ImTheMainCharacter/Reddit

The spray is “harmful if swallowed” and “prolonged or frequently repeated skin contact may cause allergic reactions in some individuals” per HotShot’s website. 

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Suspects convicted of tampering with consumer products face up to 5 to 20 years in prison.

In 2022, an Arizona man was sentenced to 10 years of probation after being convicted of adding harmful chemicals to food at several retail stores in the Phoenix area.

David Lohr was ordered to pay restitution to a grocery chain for $390.42 and ordered to participate in a mental health evaluation and any additional recommended treatment.

There were no reported injuries or illnesses associated with the tampered items during the 2018 stunt, prosecutors said.

Lohr was accused of tampering with products at stores in California one year later and sentenced to a 51-month prison term followed by three years of supervised release with mental health services.

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Arizona

Love scores 24 points as Arizona rolls to a 94-41 win over Central Michigan

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Love scores 24 points as Arizona rolls to a 94-41 win over Central Michigan


Associated Press

TUCSON, Ariz. (AP) — Caleb Love matched his season-high with 24 points to help power Arizona to a 94-41 rout of Central Michigan on Saturday.

The Wildcats (6-5) won back-to-back games for the first time since beating Canisius and Old Dominion to open the season.

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The Chippewas (5-6) scored the game’s first three points but Love knocked down three 3-pointers and scored 18 first-half points to put Arizona firmly in charge at intermission, 44-23.

Arizona shot 54.5% from the field, including 10 of 29 from distance, and got 44 points from its bench. K.J. Lewis hit 4 of 8 from the field and 5 of 5 from the line for 13 points to lead the reserves. Tobe Awaka added a double-double with 10 points and 10 rebounds. The Wildcats dominated the boards, outrebounding the Chippewas 45-27.

Central Michigan struggled from the field, hitting just 14 of 54 (25.9%), including just 3 of 16 from distance. Cayden Vasko hit 4 of 13, including 2 of 5 from 3-point range, to lead the team with 10 points.

Arizona opens Big 12 Conference play at home when it plays host to TCU on Dec. 30. Central Michigan will look to snap its three-game losing string on Dec. 30 when it plays host to Cleary.

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Ex-Texas State running back Ismail Mahdi commits to Arizona

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Ex-Texas State running back Ismail Mahdi commits to Arizona


After getting hired as Arizona’s offensive coordinator, Seth Doege said his scheme is one that can be effective through the air and on the ground. And now he’s added a playmaker who has shown the ability to produce in both areas in a similar system.

Former Texas State running back Ismail Mahdi has committed to Arizona, giving the Wildcats a versatile ball carrier who can also catch passes out of the backfield.

The 5-foot-9, 185-pound Mahdi ran for 2,322 yards and 14 touchdowns in two seasons with the Bobcats, adding 44 catches for 470 yards and three TDs as well as a score off a kick return. He has more than 3,500 all-purpose yards the last two seasons, with another 900 and five scores from the 2022 season at FCS Houston Christian.

Texas State runs a spread attack similar to what Doege used at Marshall, one that averaged 37.1 points and almost 475 yards per game this fall.

Ismail is Arizona’s 10th transfer pickup, fifth on offense and third at a skill position along with former New Mexico receiver Luke Wysong and ex-Washington State receiver Kris Hutson.

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