Though a majority of state legislatures have adjourned for the year, several states passed legislation in requiring marketplaces like eBay to collect and remit sales tax. With the enactment of bills in Massachusetts, Ohio, and Wisconsin, 37 states and the District of Columbia have marketplace facilitator laws that will take effect over the coming months. As the remaining states consider extending sales tax collection requirements to remote sellers and marketplaces, eBay will continue to advocate for workable tax policies which provide reasonable small business protections and streamline collecting and remitting standards across the states to avoid confusion, mistakes, and costly penalties.
If you have questions or need additional information on sales tax collection, please visit this eBay Customer Service site which contains guidance for individual states.
On July 31, Governor Charlie Baker (R) signed the budget bill, H. 4000, which includes Internet sales tax provisions. Under the bill, marketplace facilitators who have or facilitate more than $100,000 in sales in Massachusetts will be required to collect sales tax from Commonwealth customers beginning October 1. Though the Governor exercised his veto authority for some provisions of the budget, the marketplace facilitator requirements were not affected.
After weeks of negotiations, Governor Mike DeWine (R) signed the budget bill, HB 166, on July 18. Among other provisions, HB 166 includes requirements for marketplace facilitators to collect and remit sales tax. The bill removed Ohio’s so-called “cookie nexus” and instead adopted a $100,000 or 200 transaction threshold similar to the standard set in Wayfair. According to a July 23 tax alert issued by the Department of Taxation, marketplace facilitators that have reached one of the thresholds in the prior calendar year must begin collecting sales tax September 1.
Governor Tony Evers (D) signed AB 251 on July 3. The legislation requires marketplace providers to collect sales tax beginning January 1, 2020. The Department of Revenue indicated in a recently published tax bulletin that resources are under development by the Department to answer common questions and assist marketplace providers and sellers.