State-by-state registration requirements for marketplace sellers

On June 21, 2018, the Supreme Court of the United States authorized states to tax remote sales based on the seller’s economic activity in the state, or economic nexus. More than 40 states, and counting, now have economic nexus laws on the books. 

Around the same time, states began requiring marketplace facilitators to collect and remit sales tax on behalf of their third-party sellers. Approximately 35 states (including D.C.), and counting, now have such marketplace facilitator laws on the books.

These two significant events have left many marketplace sellers wondering, “Do I need to register in a state if I exceed the economic nexus threshold, but all of my sales are via a marketplace that collects and remits on my behalf?"

Unfortunately, as is often the case with sales tax, the answer is: “It depends.”

Whether a marketplace seller needs to register with a state generally depends on certain circumstances, described below. Because this question really only comes into play when a state has both marketplace facilitator laws and economic nexus laws, we’ll only examine the states that have both laws in place. The effective dates below refer to the date marketplace facilitators are required to collect and remit tax on all marketplace sales.

Registration requirements generally vary based on how a marketplace seller makes sales in each state:

  • Remote multichannel seller: You sell through a marketplace(s) and other channels into the state and have no physical presence in the state.
  • Remote marketplace seller: You only sell through a marketplace(s) into the state and have no physical presence in the state. 
  • In-state multichannel seller: You have a physical presence in the state and sell through a marketplace(s) and other channels in the state. 
  • In-state marketplace seller: You have a physical presence in the state and only sell through a marketplace(s).

Bear in mind that although marketplace facilitator laws may relieve some marketplace sellers from certain sales tax collection obligations, marketplace sellers can have a physical presence — and an obligation to collect and remit sales or use tax — in states where their inventory is stored for sale. Marketplace facilitator laws don’t erase past tax liability.

The information provided below is based on state statutes and information from state tax departments available as of July 31, 2019. It is subject to change as tax officials work through and refine the policies. You should always consult directly with a trusted tax advisor or the taxing jurisdiction before deciding how to deal with sales and use tax compliance in a given state. For more information or assistance in determining your sales tax registration, collection, and remittance requirements, contact Avalara Professional Services


Registration requirements by state

as of September 20, 2019

Alabama

Marketplace facilitator law enforcement date:
October 1, 2019 (originally January 1, 2019, but the Alabama Department of Revenue delayed enforcement)

Economic nexus threshold:
More than $250,000 in Alabama sales in the previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold; marketplace facilitators should include all sales made through the marketplace; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register and collect Alabama sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You're not  required to register with the state, even if you cross the economic nexus threshold; contact the Alabama Department of Revenue (DOR) for more information.
  • In-state multichannel seller: You’re required to register with the Alabama DOR and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Alabama DOR for more information.
  • Learn more here and here.

Arizona

Marketplace facilitator law enforcement date:
October 1, 2019

Economic nexus threshold: 
For remote sellers, more than $200,000 in Arizona sales for calendar year 2019; more than $150,000 for calendar year 2020; and more than $100,000 for calendar year 2021 and subsequent calendar years. For marketplace providers, more than $100,000 in Arizona sales annually. Marketplace sellers should exclude sales made through a marketplace when calculating the threshold; marketplace facilitators include them in their threshold count; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register and collect Arizona sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You may be required to register with the state if you cross the economic nexus threshold, even if you only sell through a collecting marketplace(s); contact the Arizona Department of Revenue (DOR) for more information.
  • In-state multichannel seller: You’re required to register with the Arizona DOR and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Arizona DOR for more information.
  • Learn more here.

Arkansas

Marketplace facilitator law enforcement date:
July 1, 2019

Economic nexus threshold: 
At least 200 transactions or more than $100,000 in aggregate Arkansas sales in the previous or current calendar year. Remote sellers should exclude sales made through a marketplace when calculating the threshold; marketplace facilitators include them in their threshold count; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register and collect Arkansas sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You may not be required to register with the state if you cross the economic nexus threshold; contact the Arkansas Department of Finance and Administration (DFA) for more information.
  • In-state multichannel seller: You’re required to register with the Arkansas DFA and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re likely required to register; contact the Arkansas DFA for more information.
  • Learn more here.

California

Marketplace facilitator law enforcement date:
October 1, 2019 

Economic nexus threshold:
More than $500,000 in California sales in the current or previous calendar year. Remote sellers include sales made through a marketplace when calculating the threshold count; marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: Remote multichannel seller: You’re required to register and collect California use tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You're required to register with the state if you cross the economic nexus threshold; contact the California Department of Tax and Fee Administration (CDTFA) for more information.
  • In-state multichannel seller: You’re required to register with the CDTFA and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the CDTFA for more information.
  • Learn more here.

Colorado

Marketplace facilitator law enforcement date: 
October 1, 2019 

Economic nexus threshold:
At least $100,000 in Colorado retail sales in the current or previous calendar year. Remote sellers should exclude sales made through a marketplace when calculating the threshold; marketplace facilitators include them in their threshold count; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register and collect Colorado use tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You may not be required to register with the state if you cross the economic nexus threshold; contact the Colorado Department of Revenue (DOR) for more information.
  • In-state multichannel seller: You’re required to register with the Colorado DOR and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Colorado DOR for more information. 
  • Self-collecting jurisdictions may have different requirements.
  •  Learn more here.

Connecticut

Marketplace facilitator law enforcement date:
December 1, 2018

Economic nexus threshold:
At least 200 transactions and $250,000 in Connecticut gross receipts in the state in the preceding 12-month period; threshold changes to 200 transactions and $100,000 in sales effective July 1, 2019. Remote sellers include sales made through a marketplace when calculating the threshold count; marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Connecticut Department of Revenue Services (DRS) and collect Connecticut sales tax on sales not taxed by a marketplace facilitator if you’ve crossed the economic nexus threshold.
    • Sales made through a collecting marketplace should be reported as gross sales and deducted.
  • Remote marketplace seller: You’re required to register with the Connecticut DRS. 
    • Specify that you only sell through a marketplace facilitator and you’ll be registered for an annual filing frequency.
    • Sales made through a collecting marketplace should be reported as gross sales and deducted.
  • In-state multichannel seller: You’re required to register and collect sales tax on sales not taxed by a marketplace facilitator.
    • Sales made through a collecting marketplace should be reported as gross sales and deducted.
  • In-state marketplace seller: You’re required to register with the Connecticut DRS.
    • Specify that you only sell through a marketplace facilitator and you’ll be registered for an annual filing frequency.
    • Sales made through a collecting marketplace should be reported as gross sales and deducted.
  • Learn more here and here.

Hawaii

Marketplace facilitator law enforcement date: 
January 1, 2020

Economic nexus threshold: 
At least 200 transactions or $100,000 in gross income from Hawaii sales in the state in the current or previous calendar year. Remote sellers include sales made through a marketplace when calculating the threshold count; marketplace facilitators include them in their threshold count; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Hawaii Department of Taxation (DOTAX) and collect Hawaii general excise tax (GET) on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register with DOTAX if you cross the economic nexus threshold even if you only sell through a collecting marketplace(s); contact DOTAX for more information.
  • In-state multichannel seller: You’re required to register and collect Hawaii GET on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact DOTAX for more information.
  • Learn more here.

Idaho

Marketplace facilitator law enforcement date: 
June 1, 2019

Economic nexus threshold: 
More than $100,000 in cumulative gross receipts from Idaho sales in the state in the current or previous calendar year. Remote sellers include sales made through a marketplace when calculating the threshold count; marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Idaho State Tax Commission and collect Idaho sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold. 
  • Remote marketplace seller. You’re required to register if you cross the economic nexus threshold, even if you only sell through a collecting marketplace(s); contact the Idaho State Tax Commission for more information.
  • In-state multichannel seller. You’re required to register with the Idaho State Tax Commission and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller. You’re required to register; contact the Idaho State Tax Commission for more information.
  • Learn more here.

Illinois

Marketplace facilitator law enforcement date: 
January 1, 2020

Economic nexus threshold: 
At least $100,000 in gross receipts from Illinois sales or at least 200 transactions in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold count prior to January 1, 2020, at which point they should exclude them. Starting January 1, 2020, marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Illinois Department of Revenue (DOR) and collect Illinois sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register with the Illinois DOR if you cross the economic nexus threshold, even if you only sell through a collecting marketplace(s); contact the Illinois DOR for more information.
  • In-state multichannel seller: You’re required to register with the Illinois DOR and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Illinois DOR for more information.
  • Learn more here.

Indiana

Marketplace facilitator law enforcement date: 
July 1, 2019

Economic nexus threshold: 
More than $100,000 in gross revenue from Indiana sales or at least 200 transactions in the current or previous calendar year; Remote sellers exclude sales made through a marketplace when calculating the threshold count unless the marketplace isn’t required to collect tax on their behalf; marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Indiana Department of Revenue (DOR) and collect Indiana sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register with the Indiana DOR if you cross the economic nexus threshold, even if you only sell through a collecting marketplace(s); contact the Indiana DOR for more information.
  • In-state multichannel seller: You’re required to register with the Indiana DOR and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Indiana DOR for more information.
  • Learn more here.

Iowa

Marketplace facilitator law enforcement date: 
January 1, 2019

Economic nexus threshold: 
At least $100,000 in Iowa sales or at least 200 separate transactions in the current or previous calendar year. Remote sellers include sales made through a marketplace when calculating the threshold count; marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.   

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Iowa Department of Revenue (DOR) and collect Iowa sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
    • You must report all sales but may take a deduction for sales on which tax was collected by a marketplace facilitator.
  • Remote marketplace seller: You’re not required to register and collect Iowa sales tax, even if you cross the economic nexus threshold.
  • In-state multichannel seller: You’re required to register with the Iowa DOR and collect tax on sales not taxed by a marketplace facilitator.
    • You must report all sales but may take a deduction for sales on which tax was collected by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Iowa DOR for more information.
  • Learn more here.

Kentucky

Marketplace facilitator law enforcement date:
July 1, 2019 

Economic nexus threshold: 
More than $100,000 in Kentucky sales or at least 200 separate transactions in the current or previous calendar year. Effective July 1, 2019, remote sellers include sales made through a marketplace when calculating the threshold count, and marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Kentucky Department of Revenue (DOR) and collect Kentucky sales tax on sales not taxed by a marketplace provider if you cross the economic nexus threshold.
    • Sales made through a collecting marketplace may be deducted as an “Other deduction” with the description, “Sales Tax Collected by a Marketplace Provider.”
  • Remote marketplace seller: Effective July 1, 2019, you’re not required to register with the Kentucky DOR, even if you cross the economic nexus threshold; contact the Kentucky DOR for more information.
  • In-state multichannel seller: You’re required to register with the Kentucky DOR and collect tax on sales not taxed by a marketplace provider.
    • Sales made through a collecting marketplace may be deducted as an “Other deduction” with the description, “Sales Tax Collected by a Marketplace Provider.”
  • In-state marketplace seller: You’re required to register; contact the Kentucky DOR for more information.
    • Sales made through a collecting marketplace may be deducted as an “Other deduction” with the description, “Sales Tax Collected by a Marketplace Provider.”
  • Learn more here.

Maine

Marketplace facilitator law enforcement date: 
October 1, 2019 

Economic nexus threshold:
More than $100,000 in Maine gross sales or 200 or more separate transactions of tangible personal property, electronically delivered products, or taxable sales in the current or previous calendar year. Remote sellers should include sales made through a collecting marketplace when calculating the threshold; marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with Maine Revenue Services (MRS) and collect Maine sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You're required to register with MRS if you cross the economic nexus threshold, even if you only sell through a collecting marketplace(s); contact the MRS for more information.
  • In-state multichannel seller: You’re required to register MRS and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact MRS for more information.
  • Learn more here.

Maryland

Marketplace facilitator law enforcement date: 
October 1, 2019 

Economic nexus threshold:  
More than $100,000 in gross revenue or at least 200 separate sales of tangible personal property or taxable services in Maryland during the current or previous calendar year. The state has yet to determine whether remote sellers should include marketplace sales in the threshold count; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Comptroller of Maryland and collect Maryland sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You may be required to register with the Comptroller of Maryland if you cross the economic nexus threshold, even if you only sell through a collecting marketplace(s); contact the Comptroller for more information.
  • In-state multichannel seller: You’re required to register with the Comptroller and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You may be required to register; contact the Comptroller for more information.
  • Learn more here.

Massachusetts

Marketplace facilitator law enforcement date: 
October 1, 2019 

Economic nexus threshold:  
More than $100,000 in taxable or exempt sales of tangible personal property or services in Massachusetts during the current or previous taxble year. Remote sellers should exclude sales made through a collecting marketplace in the threshold count. Marketplace facilitators should include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Massachusetts Department of Revenue (DOR) and collect Massachusetts sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You may be required to register with the DOR if you cross the economic nexus threshold; contact the DOR for more information.
  • In-state multichannel seller: You’re required to register with the DOR and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You may be required to register; contact the DOR for more information.
  • Learn more here.

Minnesota

Marketplace facilitator law enforcement date: 
October 1, 2018; updated effective October 1, 2019

Economic nexus threshold:
10 or more retail sales totaling more than $100,000 or 100 or more retail sales in Minnesota during a period of 12 consecutive months. Threshold changes to more than $100,000 in sales or 200 transactions effective October 1, 2019. Remote sellers should include sales made through a collecting marketplace when calculating the threshold; marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Minnesota Department of Revenue (DOR) and collect Minnesota sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re not required to register and collect Minnesota sales tax, even if you cross the economic nexus threshold.
  • In-state multichannel seller: You’re required to register with the Minnesota DOR and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Minnesota DOR for more information.
  • Learn more here.

Nebraska

Marketplace facilitator law enforcement date: 
April 1, 2019  

Economic nexus threshold:  
More than $100,000 in gross sales or at least 200 separate transactions into Nebraska in the current or previous calendar year. Remote sellers should include sales made through a collecting marketplace when calculating the threshold; marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Nebraska Department of Revenue (DOR) and collect Nebraska sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
    • You must report all sales but may take a deduction for sales on which tax was collected by a marketplace facilitator.
  • Remote marketplace seller: You’re required to register and collect Nebraska sales tax if you cross the economic nexus threshold.
    • You must report all sales but may take a deduction for sales on which tax was collected by a marketplace facilitator.
  • In-state multichannel seller: You’re required to register with the Nebraska DOR and collect tax on sales not taxed by a marketplace facilitator.
    • You must report all sales but may take a deduction for sales on which tax was collected by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register with the Nebraska DOR.
    • You must report all sales but may take a deduction for sales on which tax was collected by a marketplace facilitator.
  • Learn more here.

Nevada

Marketplace facilitator law enforcement date: 
October 1, 2019  

Economic nexus threshold:  
More than $100,000 in gross sales or at least 200 transactions into Nevada in the current or prior calendar year. Currently, remote sellers should include sales made through a marketplace when calculating the threshold. The state has yet to clarify whether marketplace sellers should include or exclude marketplace sales in their threshold count as of October 1, 2019. Marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Nevada Department of Taxation and collect Nevada sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You may be required to register if you cross the economic nexus threshold, even if you only sell through a collecting marketplace(s); contact the Nevada Department of Taxation for more information.
  • In-state multichannel seller: You’re required to register with the Nevada Department of Taxation and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Nevada Department of Taxation for more information.
  • Learn more here.

New Jersey

Marketplace facilitator law enforcement date: 
November 1, 2018   

Economic nexus threshold:  
More than $100,000 in gross receipts from New Jersey sales or at least 200 transactions into the state in the current or prior calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the New Jersey Division of Taxation and collect New Jersey sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register and collect New Jersey sales tax if you cross the economic nexus threshold.
    • You may request to be placed on a non-reporting basis for sales tax. 
  •  In-state multichannel seller: You’re required to register with the New Jersey Division of Taxation and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the New Jersey Division of Taxation for more information.
  • Learn more here.

New Mexico

Marketplace facilitator law enforcement date: 
July 1, 2019   

Economic nexus threshold:  
At least $100,000 in total taxable gross receipts in New Mexico in the previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the New Mexico Taxation and Revenue Department (TRD) and collect New Mexico use tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
    • You must report all sales but may take a deduction for sales on which tax was collected by a marketplace facilitator.
  • Remote marketplace seller: You’re required to register with the New Mexico TRD if you cross the economic nexus threshold.
    • You may take a deduction for sales on which tax was collected by a marketplace facilitator.
  • In-state multichannel seller: You’re required to register with the New Mexico TRD and collect tax on sales not taxed by a marketplace facilitator.
    • You must report all sales but may take a deduction for sales on which tax was collected by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the New Mexico TRD for more information.
    • You may take a deduction for sales on which tax was collected by a marketplace facilitator.
  • Learn more here.

New York

Marketplace facilitator law enforcement date: 
June 1, 2019   

Economic nexus threshold:  
More than $500,000 in gross receipts and more than 100 sales of tangible personal property in New York in the previous four sales tax quarters. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the New York Department of Taxation and Finance and collect New York sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register if you cross the economic nexus threshold; contact the New York Department of Taxation and Finance for more information.
  • In-state multichannel seller: You’re required to register with the Department of Taxation and Finance and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the New York Department of Taxation and Finance for more information.
  • Learn more here.

North Dakota

Marketplace facilitator law enforcement date: 
October 1, 2019  

Economic nexus threshold:  
More than $100,000 in taxable sales in North Dakota in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold unless the marketplace is collecting on their behalf. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the North Dakota Office of State Tax Commissioner and collect North Dakota sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re not required to register if you only sell through a collecting marketplace(s), even if you cross the economic nexus threshold; contact the North Dakota Office of State Tax Commissioner for more information.
  • In-state multichannel seller: You’re required to register with the Office of State Tax Commissioner and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the North Dakota Office of State Tax Commissioner for more information.
  • Learn more here.

Ohio

Marketplace facilitator law enforcement date: 
September 1, 2019  

Economic nexus threshold:  
Gross sales of more than $100,000 or 200 transactions in Ohio in the current or previous calendar year. Marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Ohio Department of Taxation and collect Ohio sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You may be required to register if you only sell through a collecting marketplace(s), even if you cross the economic nexus threshold; contact the Ohio Department of Taxation for more information.
  • In-state multichannel seller: You’re required to register with the Ohio Department of Taxation and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You may be required to register; contact the Ohio Department of Taxation for more information.
  • The marketplace facilitator: A marketplace facilitator should have a seller's use tax account for its own sales to Ohio consumers and a separate seller's use tax account for third-party sales.
  • Learn more here.

Oklahoma

Marketplace facilitator law enforcement date: 
July 1, 2018

Economic nexus threshold:  
For remote sellers, at least $100,000 in aggregate sales of tangible personal property in Oklahoma in the current or preceding calendar year. Remote sellers should exclude sales made through a marketplace that collects on their behalf when calculating the threshold. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold; full details here.

Note: Marketplace facilitators with at least $10,000 in aggregate sales of tangible personal property in Oklahoma during the immediately preceding 12-month calendar period must file an election with the Oklahoma Tax Commission to either collect and remit sales tax or comply with notice and reporting requirements for non-collecting sellers.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Oklahoma Tax Commission and collect Oklahoma sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register if you cross the economic nexus threshold; contact the Oklahoma Tax Commission for more information.
  • In-state multichannel seller: You’re required to register with the Oklahoma Tax Commission and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register and collect tax on sales not taxed by a marketplace facilitator; contact the Oklahoma Tax Commission for more information.
  • Learn more here.

Pennsylvania

Marketplace facilitator law enforcement date: 
March 1, 2018; updated effective July 1, 2019   

Economic nexus threshold: 
More than $100,000 in gross sales in Pennsylvania in the previous 12 months. Remote sellers should include sales made through a non-collecting marketplace when calculating the threshold. Marketplace facilitators include all sales, leases, and deliveries of tangible personal property and all sales of services made through the marketplace when calculating the threshold; full details here.

Note: Through June 30, 2019, remote marketplace facilitators with at least $10,000 in taxable sales in Pennsylvania must make an election to register to collect and remit sales tax on all sales into Pennsylvania or comply with notice and reporting requirements for non-collecting sellers. Effective July 1, 2019, the non-collecting seller use reporting option is not available to marketplace facilitators that cross the $100,000 economic nexus threshold.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Pennsylvania Department of Revenue (DOR) and collect Pennsylvania sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re not required to register, even if you cross the economic nexus threshold; contact the Pennsylvania DOR for more information.
  • In-state multichannel seller: You’re required to register with the Pennsylvania DOR and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re not required to register. If you already have a license, report your gross sales and “0” for taxable — unless you start selling outside the marketplace(s); contact the Pennsylvania DOR for more information.
  • Learn more here.

Rhode Island    

Marketplace facilitator law enforcement date:
August 17, 2017; new requirements as of July 1, 2019

Economic nexus threshold:

Gross revenue of at least $100,000 or at least 200 transactions in the immediately preceding calendar year. Remote sellers should include sales made through non-collecting marketplaces when calculating the threshold but exclude sales made through a marketplace that collects tax on their behalf. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold; full details here.

Note:
Marketplace facilitators and remote sellers meeting the economic nexus threshold in Rhode Island may opt to comply with non-collecting seller use tax reporting requirements rather than collect and remit sales tax through June 30, 2019. Effective July 1, 2019, the non-collecting seller use tax reporting option is eliminated for business that cross the economic nexus threshold.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Rhode Island Division of Taxation and collect Rhode Island sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
    • You may exclude from your returns sales on which tax was collected by a marketplace facilitator.
  • Remote marketplace seller: You’re required to register if you cross the economic nexus threshold department; contact the Rhode Island Division of Taxation for more information. 
    • You may exclude from your returns sales on which tax was collected by a marketplace facilitator.
  • In-state multichannel seller: You’re required to register with the Rhode Island Division of Taxation and collect tax on sales not taxed by a marketplace facilitator.
    • You may exclude from your returns sales on which tax was collected by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Rhode Island Division of Taxation for more information.
  • Learn more here.

South Carolina

Marketplace facilitator law enforcement date: 
April 26, 2019

Economic nexus threshold: 

More than $100,000 in sales into South Carolina in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the South Carolina Department of Revenue (DOR) and collect South Carolina sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
    • You may exclude from your returns sales on which tax was collected by a marketplace facilitator.
  • Remote marketplace seller: You’re not required to register, even if you cross the economic nexus threshold; contact the South Carolina DOR for more information. 
  • In-state multichannel seller: You’re required to register with the South Carolina DOR and collect tax on sales not taxed by a marketplace facilitator.
    • You may exclude from your returns sales on which tax was collected by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the South Carolina DOR for more information.
  • Learn more here.

South Dakota

Marketplace facilitator law enforcement date:
March 1, 2019    

Economic nexus threshold: 
For remote sellers, more than $100,000 in gross sales or at least 200 transactions in South Dakota in the current or previous calendar year (specific rules apply to marketplace providers). Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all taxable sales made through the marketplace when calculating the threshold; full details here.     

Registration requirements:

  • Remote multichannel seller: You’re required to register South Dakota Department of Revenue (DOR) and collect South Dakota sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
    • Sales made through a collecting marketplace should be treated as sales for resale.
  • Remote marketplace seller: You're required to register if you cross the economic nexus threshold. You have the option of completing an affidavit stating that you only sell through a marketplace provider(s), which would allow you to have an active sales tax license but no requirement to file returns; contact the South Dakota DOR for more information.
  • In-state multichannel seller: You’re required to register with the South Dakota DOR and collect tax on sales not taxed by a marketplace facilitator.
    • Sales made through a collecting marketplace should be treated as sales for resale.
  • In-state marketplace seller: You’re required to register; contact the South Dakota DOR for more information.
  • Learn more here.

Texas

Marketplace facilitator law enforcement date: 
October 1, 2019    

Economic nexus threshold:
More than $500,000 in gross revenue in Texas in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold; Marketplace facilitators don’t need to calculate the threshold — they all have to collect and remit tax on third-party sales; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Texas Comptroller of Public Accounts and collect Texas use tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register if you cross the economic nexus threshold; contact the Texas Comptroller for more information.
    • You may request to file annual returns.
  • In-state multichannel seller: You’re required to register with the Texas Comptroller and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Texas Comptroller for more information.
  • You may have franchise tax obligations after economic nexus for franchise tax takes effect on October 1, 2019. 
  • Learn more here.

Utah

Marketplace facilitator law enforcement date: 
October 1, 2019    

Economic nexus threshold: 
More than $100,000 in gross revenue or 200 or more transactions in the state in the current or previous calendar year. Remote sellers should exclude sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements::

  • Remote multichannel seller: You’re required to register with the Utah State Tax Commission and collect Utah sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register if you cross the economic nexus threshold; contact the Utah State Tax Commission for more information.
  • In-state multichannel seller: You’re required to register with the Utah State Tax Commission and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Utah State Tax Commission for more information.
  • Learn more here.

Vermont

Marketplace facilitator law enforcement date:
June 1, 2019    

Economic nexus threshold:

More than $100,000 in gross revenue or 200 or more transactions in Vermont during any prior 12-month period. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include only sales facilitated through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Vermont Department of Taxes and collect Vermont sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register if you cross the economic nexus threshold; contact the Vermont Department of Taxes for more information.
  • In-state multichannel seller: You’re required to register with the Vermont Department of Taxes and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Vermont Department of Taxes for more information.
  • Learn more here.

Virginia

Marketplace facilitator law enforcement date: 
July 1, 2019    

Economic nexus threshold: 
More than $100,000 in gross revenue or 200 or more transactions in Virginia in the current or previous calendar year. Remote sellers should exclude sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Virginia Department of Taxation and collect Virginia sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register if you cross the economic nexus threshold; contact the Virginia Department of Taxation for more information.
    • After filing the last returns covering sales made through a marketplace(s), mark yourself as no longer liable for sales tax on Form R-3 (or online).
  • In-state multichannel seller: You’re required to register with the Virginia Department of Taxation and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Virginia Department of Taxation for more information.
    • After filing the last returns covering sales made through a marketplace(s), mark yourself as no longer liable for sales tax on Form R-3 (or online). You may update your account so you can continue using your sales tax exemption certificates. 
  • Learn more here.

Washington

Marketplace facilitator law enforcement date: 
January 1, 2018; new requirements as of October 1, 2018 and July 1, 2019

Economic nexus threshold: 
More than $100,000 in retail sales delivered into Washington in the current or previous calendar year. The threshold changes to more than $100,000 in cumulative gross income in Washington as of January 1, 2020. Remote sellers should include sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Note: 
Through June 30, 2019, remote marketplace facilitators and remote sellers with between $10,000 and $100,000 in taxable sales in Washington must make an election to register to collect and remit Washington sales tax or comply with notice and reporting requirements for non-collecting sellers. Effective July 1, 2019, the non-collecting seller use reporting option is eliminated.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Washington Department of Revenue (DOR) and collect Washington sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
    • For sales made through a collecting marketplace, take the deduction “Retail Sales Tax Collected by Facilitator.”
  • Remote marketplace seller: You’re required to register with the Washington DOR if you cross the economic nexus threshold.
    • For sales made through a collecting marketplace, take the deduction “Retail Sales Tax Collected by Facilitator.”
  • In-state multichannel seller: You’re required to register with the Washington DOR and collect tax on sales not taxed by a marketplace facilitator.
    • For sales made through a collecting marketplace, take the deduction “Retail Sales Tax Collected by Facilitator.”
  • In-state marketplace seller: You’re required to register with the Washington DOR.
    • For sales made through a collecting marketplace, take the deduction “Retail Sales Tax Collected by Facilitator.”
  • Marketplaces will have to collect any other applicable taxes on behalf of marketplace sellers effective January 1, 2020.
  • Learn more here.

Washington, D.C.

Marketplace facilitator law enforcement date: 
April 1, 2019      

Economic nexus threshold: 

More than $100,000 in gross sales or at least 200 transactions into the district in the current or prior calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Washington, D.C. Office of Tax and Revenue (OTR) and collect district sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re required to register and collect district sales tax if you cross the economic nexus threshold; contact the Washington, D.C. OTR for more information.
  • In-state multichannel seller: You’re required to register with the Washington, D.C. OTR and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Washington, D.C. OTR for more information.
  • Learn more.

West Virginia

Marketplace facilitator law enforcement date: 
July 1, 2019     

Economic nexus threshold: 

More than $100,000 in gross revenue or at least 200 transactions in the state in the current or previous calendar year. Remote sellers should exclude sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the West Virginia State Tax Department and collect West Virginia sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re not required to register, even if you cross the economic nexus threshold; contact the West Virginia State Tax Department for more information.
  • In-state multichannel seller: You’re required to register with the West Virginia State Tax Department and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the West Virginia State Tax Department for more information.
  • Learn more here.

Wisconsin

Marketplace facilitator law enforcement date:
October 1, 2019     

Economic nexus threshold: 

More than $100,000 in gross revenue or at least 200 transactions in the state in the current or previous calendar year. Remote sellers should include sales made through a marketplace when calculating the threshold.; full details here.

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Wisconsin Department of Revenue and collect Wisconsin sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re not required to register, even if you cross the economic nexus threshold; contact the Wisconsin Department of Revenue for more information.
  • In-state multichannel seller: You’re required to register with the Wisconsin Department of Revenue and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re required to register; contact the Wisconsin Department of Revenue for more information.
  • Learn more here.

Wyoming

Marketplace facilitator law enforcement date: 
July 1, 2019    

Economic nexus threshold:
More than $100,000 in gross sales in Wyoming or 200 transactions in the current or preceding calendar year. Remote sellers should exclude sales made through a marketplace when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold full details here

Registration requirements:

  • Remote multichannel seller: You’re required to register with the Wyoming Department of Revenue (DOR) and collect Wyoming sales tax on sales not taxed by a marketplace facilitator if you cross the economic nexus threshold.
  • Remote marketplace seller: You’re not required to register if you cross the economic nexus threshold so long as the marketplace facilitator has licensed with the Wyoming DOR for the collection and remittance of sales tax on sales made through their platform; contact the Wyoming DOR for more information.
  • In-state multichannel seller: You’re required to register with the Wyoming DOR and collect tax on sales not taxed by a marketplace facilitator.
  • In-state marketplace seller: You’re not required to register; contact the Wyoming Department of Revenue for more information.
  • Learn more here.

Get your ducks in a row

Marketplace facilitator sales tax laws add another layer of complexity to sales and use tax compliance. They’re one more thing to track, and they typically don’t relieve sellers of all sales and use tax obligations.

You don’t have to negotiate them alone. Avalara offers tax compliance tools and resources specifically for online marketplace sellers.

Although we hope you’ll find the information helpful, this guide does not offer a substitute for professional legal or tax advice. If you have questions about your tax liability or concerns about compliance, please consult your qualified legal, tax, or accounting professional. This information was compiled in June 2019. Because states constantly update and amend their sales and use tax laws, see each state’s tax authority website for the most up-to-date and comprehensive information.

Your next steps
Not yet registered?

Set up for success and get your business licenses and sales tax registration

Already registered? Try filing

Sync your sales data, prepare your returns, and file with a single click

Keep learning

Visit our resource center to learn more about marketplace sales tax