End-of-Year State IST Update

December 16, 2020

As 2020 draws to a close, state legislatures are beginning to prepare for another challenging year amidst the pandemic. One issue that remains on the docket for several states is Internet sales tax (IST) collection requirements. Recently, legislation was filed in Florida and Missouri – two of the three remaining states without a law for marketplace facilitators like eBay to collect and remit tax – in advance of their 2021 legislative sessions. The third state without a marketplace facilitator law, Kansas, is also expected to file legislation in their upcoming session.

Nearly every state has implemented IST requirements following the US Supreme Court’s June 2018 decision on South Dakota v. Wayfair. Beginning January 1, 2021, eBay will be required to collect tax in 44 states and territories, including the District of Columbia and Puerto Rico. Additionally, as of December 1, 2020, 28 Colorado home rule cities (local governments that impose and administer their own local sales and use taxes) require marketplaces to collect taxes.

As the remaining states consider extending sales tax collection requirements to remote sellers and marketplaces, eBay continues to advocate for workable IST policies which provide reasonable small business protections and streamline collecting and remitting standards to avoid confusion, mistakes, and costly penalties. For the full list of US jurisdictions that currently require eBay to collect sales tax, as well as those scheduled for future implementation, please visit eBay’s Customer Service site.