State Internet Sales Tax Update

July 3, 2019

June was another active month for states seeking to implement requirements for online marketplaces to collect and remit sales tax for transactions stemming from last year’s Wayfair decision. A majority of jurisdictions have enacted Internet sales tax legislation for marketplace facilitators as 34 states and Washington, D.C. now have laws on the books.  Only a handful of state legislatures are still in legislative sessions and actively meeting, and marketplace facilitator legislation remains in play in several states.

eBay began collecting sales tax in thirteen states on July 1.  For an up to date view of states eBay is currently collecting sales tax, and those scheduled for future implementation, please visit:  https://www.ebay.com/help/selling/fees-credits-invoices/taxes-import-charges?id=4121

Below are updates on recent state legislative activities:

Illinois

On the last scheduled day of the regular session, SB 689 was substantially amended to add marketplace facilitator language. The bill quickly made it through the legislative process over the next 48 hours and was signed by Governor JB Pritzker (D) on June 5. The marketplace facilitator provisions are set to go in to effect January 1, 2020.

Maine

On June 20, Governor Janet Mills (D) signed LD 1452. As a result, marketplace facilitators will be required to collect tax on sales starting October 1, 2019.

Massachusetts

House and Senate conferees continue to negotiate various policy provisions incorporated in to the budget, including marketplace facilitator requirements. A temporary budget to extend current spending levels through the end of July was adopted.

Michigan

A package of bills addressing sales tax collection requirements for marketplace facilitators and remote sellers advanced through the House Committee on Tax Policy. eBay Government Relations will continue to provide input on the legislation as it makes its way through the legislative process.

Nevada

Governor Steve Sisolak (D) approved the marketplace facilitator legislation, AB 445, on June 12. The bill will take effect October 1, 2019.

North Carolina

Governor Roy Cooper (D) vetoed the budget bill, HB 966, which included marketplace facilitator sales tax collection requirements. The bill will go back to the Legislature for a vote to override the Governor’s veto. Should the Legislature not have the requisite votes to override the veto or reach an agreement on a budget, the current budget will remain in place.