More than 20 states aim to make marketplace facilitators collect sales tax for sellers in 2019

More than 20 states aim to make marketplace facilitators collect sales tax for sellers in 2019

Last updated 6.24.2019

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 if 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 economic nexus component, the collection requirement would apply to all marketplace facilitators making sales in the state. Click on the links for more details.

  • Arizona (October 1, 2019)
    • Includes an economic nexus component
    • HB 2757 was enacted
  • Arkansas (July 1, 2019)
    • Includes an economic nexus component
    • SB 576 was enacted
  • California (October 1, 2019)
    • Includes an economic nexus component
    • AB 147 was enacted
  • Colorado (October 1, 2019)
    • Includes an economic nexus component   
    •  SB 006 was enacted
  • Florida (July 1, 2019)
    • Includes an economic nexus component
    • SB 1112 failed
  • Georgia (January 1, 2020)
    • Includes an economic nexus component
  • Hawaii (January 1, 2020)
    • No economic nexus component
    • SB 396 was enacted
  • Idaho (June 1, 2019)
    • Includes an economic nexus component
    • HB 259 was enacted
  • Indiana (July 1, 2019)
    • Includes an economic nexus component
    • HB 1001 was enacted
  • Kansas (July 1, 2020)
    • Includes an economic nexus component
    • SB 22 was vetoed by Gov. Kelly on March 25, 2019
    • HB 2033 was vetoed by Gov. Kelly on May 15, 2019
    • HB 2353 is still live
  • Kentucky (July 1, 2019)
    • Includes an economic nexus component
    • HB 354 was enacted
  • Louisiana
    • The Louisiana Department of Revenue is working on draft legislation
  • Maine (October 1, 2019)
    • Includes an economic nexus component   
    • HP 1064 was enacted 
  • Maryland (October 1, 2019)
    • No economic nexus component
    • HB 1301 was enacted
  • 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 (April 1, 2019)
    • Includes an economic nexus component
    • LB284 was enacted 
  • New Mexico (July 1, 2019)
    • Includes an economic nexus component
    • HB 6 was enacted
  • New York (June 1, 2019)
  • North Carolina (September 1, 2019)
    • Includes an economic nexus component    
  • Oklahoma
    • Includes an economic nexus component
  • North Dakota (October 1, 2019)
    • Includes an economic nexus component 
    • SB 2338 was enacted 
  • Rhode Island (90 days after 3.29.2019)
    • Includes an economic nexus component
    • S. 251 was enacted March 29, 2019; it takes effect 90 days after signed
  • Texas (October 1, 2019)
    • No economic nexus component
    • HB 2153 was enacted
  • Vermont (July 1, 2019)
    • Includes an economic nexus component
    • HB 536 was enacted
  • Virginia (July 1, 2019)
    • Includes an economic nexus component
    • SB 1083 was enacted
  • West Virginia (July 1, 2019)
    • Includes economic nexus component
    • HB 2831 was enacted

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 states require marketplace 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 ecommerce 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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