State Internet Sales Tax Update

September 20, 2019

States across the country have moved forward with implementing sales tax collection requirements on marketplace facilitators like eBay following the June 2018 South Dakota v. Wayfair decision by the U.S. Supreme Court. In 2019, 28 states have passed marketplace facilitator legislation to date, bringing the total to 37 states and the District of Columbia that now have legislation on the books. 

Several states’ marketplace facilitator laws are set to take effect on October 1st, including Arizona, California, Maryland, Massachusetts, Nevada, and Texas, among others. As a result of these types of laws, eBay will calculate, collect, and remit sales tax on behalf of sellers for items shipped to customers in these states and others. For the full list of states that eBay is currently collecting sales tax and those scheduled for future implementation, please visit eBay’s Customer Service site.

A few state legislatures are still in session this fall. Of those, only two – Michigan and North Carolina – have active marketplace facilitator legislation eligible to be considered for potential enactment. Most state legislatures will return in early 2020 for their sessions, and the remaining states are expected to propose similar requirements. eBay will continue to advocate for workable tax policies that provide reasonable small business protections and streamline collecting and remitting standards across the states to avoid confusion, mistakes, and costly penalties.