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What to Know About Marketplace Facilitator Sales Tax Proposals

Mar 4th 2019
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The number of states looking to hold marketplace facilitators responsible for collecting and remitting sales tax on behalf of all marketplace sellers is steadily increasing. More than 20 states currently have marketplace facilitator measures under consideration, including the four most populous states in the country: California, Florida, New York and Texas.

If you’re a marketplace facilitator or seller and any of these proposed changes become law, your collection and/or reporting requirements will likely be affected.

Marketplace facilitator sales tax proposals have been introduced in the following states, listed with the proposed effective date. If an economic nexus component is included, the collection requirement includes an exception for small facilitators/sellers. If there’s no component, the collection requirement would apply to all marketplace facilitators making sales in the state. Click on the links for more details:

  • Arizona (the first day of the month following the effective date of the act)
    • Includes an economic nexus component
  • Arkansas (the first day of the calendar quarter following the effective date of the act)
    • Includes an economic nexus component
  • California (October 1, 2019)
    • Includes an economic nexus component
  • Florida (July 1, 2019)
    • Includes an economic nexus component
  • Georgia (January 1, 2020)
    • Includes an economic nexus component
  • Hawaii (January 1, 2020)
    • No economic nexus component
  • Indiana (July 1, 2019)
    • Includes an economic nexus component
  • Kansas (July 1, 2020)
    • Includes an economic nexus component
  • Kentucky (July 1, 2019)
    • Includes an economic nexus component
  • Louisiana
    • The Louisiana Department of Revenue is working on draft legislation
  • Maryland (July 1, 2019)
    • No economic nexus component
  • Massachusetts SD 1701 and SD 2030 (effective date TBD)
    • Both measures include an economic nexus component
  • Missouri (January 1, 2020)
    • Includes an economic nexus component
  • Nebraska (July 1, 2019)
    • Includes an economic nexus component
  • New Mexico (July 1, 2019)
    • Includes an economic nexus component
  • New York (September 1, 2019)
    • Includes an economic nexus component
  • North Dakota (October 1, 2019)
    • Includes an economic nexus component
  • Rhode Island (upon passage)
    • Includes an economic nexus component
  • Texas HB 1525 and SB 890 (September 1, 2019)
    • Neither measure contains an economic nexus component
  • Vermont (July 1, 2019)
    • Includes an economic nexus component
  • Virginia (July 1, 2019)
    • Includes an economic nexus component
  • West Virginia (July 1, 2019)
    • Includes economic nexus component

The above list is subject to change and will likely increase (or decrease) before the year is out.

Meanwhile, more than 10 states have already imposed a sales tax collection obligation on marketplace facilitators. These are (listed with effective dates):

The exact requirements for marketplace facilitators and their third-party sellers differ from state to state. For example, some require sellers to report their marketplace sales and take a deduction for them if the facilitator is responsible for collecting sales tax; others don’t. However, all states require sellers to register with the tax department and collect and remit tax on sales made through other channels, such as their own e-commerce store or a non-collecting marketplace.

Learn how different state marketplace facilitator sales tax laws affect marketplace sellers.

If and when a state does impose a sales tax collection obligation on marketplace facilitators, we’ll update our list of state remote sales tax laws.

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