Please note: This blog was originally published in 2019. It’s since been updated for accuracy and comprehensiveness.
A marketplace facilitator is a business or organization that contracts with third parties to sell goods and services on its platform and facilitates retail sales. Marketplace facilitators enable these sales by listing the products, taking the payments, collecting receipts, and in some cases assisting in shipment. When we refer to marketplace facilitator laws, we’re talking about legislation surrounding the sales tax responsibilities of these facilitators.
All states with a state sales tax have created legislation that requires marketplace facilitators to collect and remit sales tax on behalf of their third-party sellers’ transactions. These laws benefit the states because they can collect more sales tax from fewer entities, which results in simpler compliance for the states. For sellers, the benefit lies in having sales tax for certain transactions handled by the facilitator. But in many cases, it’s not as simple as it may seem.
The reasoning behind marketplace facilitator sales tax laws
Marketplace facilitator laws grew from the idea that a state could collect all of the required sales tax from one entity rather than from hundreds of thousands of smaller companies. Let’s use Amazon as an example. Before these types of tax laws came into effect, each of the third-party sellers was responsible for collecting and remitting their own sales tax.
So if a third-party seller on Amazon didn’t have nexus (triggered by a physical location, employee staff, store inventory, or reach a certain amount or number of transactions) then it didn’t have to collect sales tax for sales in that state. And the state then missed that portion of revenue.
And even if a seller did have nexus there, if the seller chose not to follow the law, the state then spends significant time and resources to go after that seller, along with any other businesses that are non-compliant. That’s a lot of time and money to get their sales tax revenue.
By placing the onus of sales tax on the facilitator (rather than the seller), these laws enable the states to force compliance across the entire state, and it dramatically reduces the cost of compliance for the states to claim their revenue.
What sellers need to know about marketplace facilitator laws
For sellers, marketplace facilitator laws mean that your facilitator will handle collecting and remitting sales taxes on behalf of your sales in states where your marketplace is compliant.
Another concern for sellers is whether a seller should keep their sales tax permits current if they are dealing with a state that imposes marketplace facilitator laws. The general consensus is yes. Remember, a facilitator will only handle the sales tax on transactions sold through its platform.
So, if Amazon is collecting sales tax on your behalf in Washington, but you are located in Washington and you sell items through your business website, too, you still need to collect, remit, and file in the state on your own. To do that, you have to have current license or permit. And in most states, if you don’t do any sales outside of those with the facilitator, you’re required you to file a simple “zero return” saying so, or register for non-reporting sales tax status.
But, it’s imperative that you as the seller arm yourself with all of the relevant information about possible marketplace facilitator laws. Below we’ll share all of the information that we know on which states currently impose these laws and the facts you need to know to stay up-to-date.
How to file your sales tax return when marketplace tax is collected
If your state return includes sales to customers in states with Marketplace Facilitator laws, TaxJar’s Reports (and TaxJar’s AutoFile) will assume that your marketplace has remitted all collected taxes associated with such sales on your behalf and will adjust your returns accordingly. You can read more about how TaxJar handles this tax in our help center.
Marketplace facilitator laws, by state
If you’re selling to customers in multiple states through a marketplace facilitator, keeping track of whether or not you have economic nexus is critical to staying compliant. It requires a serious vigilance to perform this manually, what with 46 different sales tax nexus laws, 11,000 taxing jurisdictions, and the ever-changing laws.
Automating your sales tax through a trusted solution increases efficiency and accuracy, but also allows you to focus on what’s most important: running your business. With TaxJar, you can swap the hours you’d spend navigating multi-state payment processes with automatic monthly reports, on-time filings, and friendly support when you need it the most. Start a free 30-day TaxJar trial today. If you have any questions about how TaxJar can support your marketplace sales, reach out to our sales team.
Alabama
The Alabama law states that marketplace facilitators with marketplace sales over $250,000 must collect sales tax by or on behalf of its third-party sellers.
Additionally, remote sellers who exceed the economic nexus rule’s $250,000 small seller exception should register for the Alabama Simplified Sellers Use Tax Program (SSUT) and begin collecting no later than October 1, 2018.
State Effective Date: January 1, 2019
Marketplace adoption:
- Amazon (effective January 1, 2019)
- eBay (effective July 1, 2019)
- Etsy (effective July 1, 2019)
- Walmart (effective April 1, 2019)
Alaska
Alaska’s marketplace facilitator law states that marketplace facilitators in Alaska must collect sales tax on behalf of third-party sellers in the current or immediately preceding calendar year if they had cumulative gross receipts that exceed $100,000 from retail sales facilitated to Alaska customers; or the marketplace facilitated at least 200 separate retail transactions.
Unlike other US states, Alaska does not have a state-level sales tax. Instead, local jurisdictions are allowed to decide if they want to levy a sales tax.
State law information: Read an FAQ on marketplace facilitator sales tax in Alaska
State Effective Date: January 1, 2020 (and onward depending on jurisdiction)
Marketplace adoption:
- Amazon (effective April 1, 2020 – In applicable jurisdictions)
- Etsy (effective April 1, 2021)
- eBay (effective November 1, 2021) – In applicable jurisdictions
Arizona
Marketplace facilitators will be required to collect and remit Transaction Privilege Tax (TPT) on taxable sales in Arizona made through their platform for at least one remote marketplace seller if gross sales for that marketplace facilitator exceed $100,000 annually. Marketplace sales should be included in gross receipts and then deducted from the gross receipts to calculate the taxable sales.
Remote sellers do not need to collect TPT on transactions when a marketplace facilitator is collecting and remitting TPT for them. Please note: As part of the legislation, municipal license fees are waived for both remote sellers and online marketplace facilitators.
State Effective Date: January 1, 2019
Marketplace adoption:
- eBay (effective October 1, 2019)
- Etsy (effective October 1, 2019)
- Walmart (effective October 1, 2019)
Arkansas
Arkansas has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective July 1, 2019.
State Effective Date: July 1, 2019
Marketplace adoption:
- Amazon (effective July 1, 2019)
- eBay -(effective July 1, 2019)
- Etsy – (effective)July 1, 2019)
- Walmart – (effective July 1, 2019)
California
California has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective October 1, 2019.
State Effective Date: October 1, 2019
Marketplace adoption:
- Amazon (effective October 1, 2019)
- eBay -(effective October 1, 2019)
- Etsy – (effective) October 1, 2019)
- Walmart – (effective October 1, 2019)
Colorado
Marketplace facilitators are required to start collecting and remitting sales taxes into the state beginning on October 1, 2019, if they met the threshold during the 2018 calendar year.
State Effective Date: October 1, 2019
Marketplace adoption:
- eBay (effective October 1, 2019)
- Etsy (effective October 1, 2019)
- Walmart (effective October 1, 2019)
Connecticut
This law requires that marketplace facilitators in Connecticut must collect and remit sales tax on behalf of their marketplace sellers.
If you’re already registered as a retailer with the Department of Revenue Services, but you only make sales through marketplace facilitators who collect and remit sales tax on your behalf, then you can request to change your filing status to annual. Send a secure email via the online Taxpayer Service Center (TSC). But, before you change your filing frequency, you’ll need to wait until you receive written confirmation from the DRS of your change in filing status.
State Effective Date: December 1, 2018
Marketplace adoption:
- Amazon (effective December 1, 2018)
- eBay (effective April 1, 2019)
- Etsy (effective February 1, 2019)
- Walmart (effective December 1, 2018)
Florida
Florida’s marketplace facilitator law states that marketplace facilitators who make or facilitate more than $100,000 in sales on behalf of 3rd party sellers to Florida customers in the previous calendar year are required to collect Florida sales tax.
State Effective Date: July 1, 2021
Marketplace adoption:
- Amazon (effective July 1, 2021)
- eBay (effective July 1, 2021)
- Etsy (effective July 1, 2021)
- Walmart (effective July 1, 2021)
Georgia
This law requires that marketplace facilitators with sales in excess of $100,000 in Georgia must collect and remit sales tax on behalf of their marketplace sellers.
State Effective Date: April 1, 2020
Marketplace adoption:
- Amazon (effective April 1, 2020)
- eBay (effective April 1, 2020)
- Etsy (effective February 1, 2020)
- Walmart (effective December 1, 2020)
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This law requires marketplace facilitators without a physical presence in Hawaii to collect Hawaii sales tax when economic nexus is reached ($100,000 or more in gross income or at least 200 transactions). In Hawaii, the marketplace facilitators shall be deemed the seller and are responsible for collecting sales tax on behalf of their sellers as well as out-of-state marketplace facilitators that have economic nexus in Hawaii.
State Effective Date: January 1, 2020
Marketplace adoption:
- Amazon (effective January 1, 2020)
- Ebay (effective January 1, 2020)
- Etsy (effective January 1, 2020)
- Walmart (effective January 1, 2020)
Idaho
This law requires marketplace facilitators without a physical presence in Idaho to collect Idaho sales tax when the combined total of their own sales in Idaho and their third-party sales in Idaho exceeds $100,000 in the current or previous year. They must have separate seller’s permits for their sales in Idaho and their third-party sales. Retailers without a physical presence in Idaho must collect Idaho sales tax when their sales in Idaho exceed $100,000 in the current or previous year.
State Effective Date: June 1, 2019
Marketplace adoption:
- Amazon (effective June 1, 2019)
- Ebay (effective June 1, 2019)
- Etsy (effective June 1, 2019)
- Walmart (effective June 1, 2019)
Indiana
This law requires that marketplace facilitators in Indiana must collect and remit sales tax on behalf of their marketplace sellers.
State Effective Date: July 1, 2019
Marketplace adoption:
Illinois
This law says that marketplace facilitators who generate $100,000 or more in sales, or generate sales in 200 or more separate transactions, must get an Illinois retail sales tax permit and file sales tax returns.
At the end of each quarter (March, June, September and December), the marketplace must determine if either of the thresholds was met during the preceding 12-months in order to collect and remit sales tax.
State Effective Date: January 1, 2020
Marketplace adoption:
- Amazon (effective January 1, 2020)
- eBay (effective January 1, 2020)
- Etsy (effective January 1, 2020)
- Walmart (effective January 1, 2020)
Iowa
This law says that marketplace facilitators who generate $100,000 or more in sales, or generate sales in 200 or more separate transactions, must get an Iowa retail sales tax permit and file sales tax returns.
The law also requires many sellers with a retailer’s use tax permit to get a sales tax permit instead.
State Effective Date: January 1, 2019
Marketplace adoption:
- Amazon (effective January 1, 2019)
- eBay (effective February 1, 2019)
- Etsy (effective February 1, 2019)
- Walmart (effective January 2, 2019)
Kansas
This law requires that marketplace facilitators like Amazon or eBay who make or facilitate sales of more than $100,000 to buyers in the state of Kansas collect sales tax on behalf of 3rd party sellers.
State Effective Date: July 1, 2021
Marketplace adoption:
- Amazon (effective July 1, 2021)
- eBay -(effective July 1, 2021)
- Etsy – (effective July 1, 2021)
- Walmart – (effective July 1, 2021)
Kentucky
This law requires that marketplace providers (previously defined as marketplace facilitators) in Kentucky must collect and remit sales tax on behalf of their marketplace sellers in the immediately preceding or current calendar year, if the marketplace provider:
- Makes $100,000 in retail sales on its own behalf or in facilitated retail sales of tangible personal property, digital property, or services that are delivered or transferred electronically to a Kentucky purchaser; or
- Makes 200 or more separate retail sales transactions on its own behalf or in facilitated sales.
State Effective Date: July 1, 2019
Marketplace adoption:
- Amazon (effective July 1, 2019)
- eBay -(effective July 1, 2019)
- Etsy – (effective)July 1, 2019)
- Walmart – (effective July 1, 2019)
Louisiana
This law requires that marketplace facilitators that make more than $100,000 in gross sales into Louisiana or more than 200 sales into Louisiana in the prior or current calendar year are required to collect and remit sales tax on behalf of marketplace sellers.
State Effective Date: July 1, 2020
Marketplace adoption:
- Amazon (effective July 1, 2020)
- eBay (effective July 1, 2020)
- Etsy (effective July 1, 2020)
- Walmart (effective July 1, 2020)
Maine
This law requires that marketplace facilitators in Maine collect Maine sales tax on behalf of third-party sellers in the previous or current calendar year if the marketplace facilitator exceeds $100,000.00 in retail sales; or there are at least 200 separate sales transactions into Maine.
The remote seller does not have to count the sales done through a marketplace facilitator when calculating the above criteria.
State Effective Date: October 1, 2019
Marketplace adoption:
- eBay (effective October 1, 2019)
- Etsy (effective October 1, 2019)
- Walmart (effective October 1, 2019)
Maryland
This law requires that marketplace facilitators in Maryland collect sales tax on behalf of third-party sellers in the previous or current calendar year on all sales made through the marketplace for delivery into Maryland. It’s worth mentioning that a marketplace facilitator and seller may ask for a waiver of this requirement if:
- The marketplace seller is a publicly traded communications company;
- The marketplace facilitator and marketplace seller have an agreement that the seller will collect and remit applicable taxes; and
- The marketplace seller provides the facilitator with evidence that the seller is licensed to engage in the business of an out-of-state vendor in Maryland.
State Effective Date: October 1, 2019
Marketplace adoption:
- eBay (effective October 1, 2019)
- Etsy (effective October 1, 2019)
- Walmart (effective October 1, 2019)
Massachusetts
Massachusetts’ marketplace facilitator law states that remote marketplace facilitators who make more than $100,000 in sales in Massachusetts in the previous or current calendar year on all sales made through the marketplace are required to collect sales tax on behalf of third party sellers.
State Effective Date: October 1, 2019
Marketplace adoption:
- Amazon (effective October 1, 2019)
- eBay (effective October 1, 2019)
- Etsy (effective October 1, 2019)
- Walmart (effective October 1, 2019)
Michigan
This law requires that remote marketplace facilitators who make more than $100,000 in sales or at least 200 transactions in Michigan must collect sales tax on behalf of third-party sellers in the previous or current calendar year on all sales made through the marketplace.
State Effective Date: January 1, 2020
Marketplace adoption:
- Amazon (effective January 1, 2020)
- eBay -(effective January 1, 2020)
- Etsy – (effective) January 1, 2020)
- Walmart – (effective January 1, 2020)
Minnesota
This law requires that marketplace facilitators in Minnesota collect Minnesota sales tax on behalf of third-party sellers. Keep in mind that third-party sellers who have other forms of sales tax nexus in Minnesota (a home office/business, physical location, employee, salesperson, etc.) would still be required to register for a Minnesota sales tax permit and collect sales tax.
State Effective Date: October 1, 2018
Marketplace adoption:
- Amazon (effective October 1, 2018)
- eBay (effective January 1, 2019)
- Etsy (effective October 1, 2018)
- Walmart (effective October 1, 2018)
Mississippi
Marketplaces that make more than $250,000 in sales in any consecutive twelve-month period are required to collect sales tax on behalf of 3rd party sellers who sell on the marketplace.
State Effective Date: July 1, 2020
Marketplace adoption:
- Amazon (effective July 1, 2020)
- eBay (effective July 1, 2020)
- Etsy (effective July 1, 2020)
- Walmart (effective July 1, 2020)
Missouri
This law requires third-party marketplaces to collect and remit sales tax on behalf of third-party sellers who sell through the marketplace.
State Effective Date: January 1, 2023
Marketplace adoption:
Nebraska
This law requires that marketplace facilitators in Nebraska collect Nebraska sales tax on behalf of third-party sellers.
Sellers that have a physical presence in Nebraska, or who are otherwise legally obligated to collect and remit Nebraska sales tax, are unaffected by the new law.
State Effective Date: April 1, 2019
Marketplace adoption:
- Amazon (effective April 1, 2019)
- Ebay (effective May 1, 2019)
- Etsy (effective June 1, 2019)
- Walmart (effective May 1, 2019)
Nevada
This law requires that marketplace facilitators in Nevada must collect sales tax on behalf of third-party sellers in the current or immediately preceding calendar year if they had cumulative gross receipts that exceed $100,000 from retail sales facilitated to Nevada customers; or the marketplace facilitated at least 200 separate retail transactions.
It’s also important to note that a marketplace and the seller can agree (in writing) to have the seller collect tax due if preferred.
State Effective Date: October 1, 2019
Marketplace adoption:
- Amazon (effective October 1,2019)
- eBay (effective October 1, 2019)
- Etsy (effective October 1, 2019)
- Walmart (effective October 1, 2019)
New Jersey
This law requires that marketplace facilitators in New Jersey collect New Jersey sales tax on behalf of third-party sellers. See the Remote Sellers notice for more information.
Sellers that have a physical presence in New Jersey, or who are otherwise legally obligated to collect and remit New Jersey Sales Tax, are unaffected by the new law.
State Effective Date: November 1, 2018
Marketplace adoption:
- Amazon (effective November 1, 2018)
- eBay (effective May 1, 2019)
- Etsy (effective April 1, 2019)
- Walmart (effective March 1, 2019)
New Mexico
This law requires that marketplace facilitators must collect and remit gross receipts tax on behalf of their marketplace sellers once the provider reaches the $100,000 threshold.
State Effective Date: July 1, 2019
Marketplace adoption:
- Amazon (effective July 1, 2019)
- eBay -(effective July 1, 2019)
- Etsy – (effective)July 1, 2019)
- Walmart – (effective July 1, 2019)
New York
This law requires that marketplace facilitators in New York collect New York sales tax on behalf of third-party sellers. The marketplace facilitator will collect sales tax on all sales delivered into NY regardless of the nexus status of the seller.
State Effective Date: June 1, 2019
Marketplace adoption:
- Amazon (effective June 1, 2019)
- Ebay (effective June 1, 2019)
- Etsy (effective June 1, 2019)
- Walmart (effective June 1, 2019)
North Carolina
This law requires that marketplace facilitators in North Carolina collect sales and use taxes (and all applicable city and county local option taxes) on North Carolina sales made on its marketplace if the marketplace’s taxable sales into the state exceed $100,000 or 200 or more transactions in the current or prior calendar year.
State Effective Date: February 1, 2020
Marketplace adoption:
North Dakota
This law requires that marketplace facilitators in North Dakota collect sales and use taxes (and all applicable city and county local option taxes) on North Dakota sales made on its marketplace if the marketplace’s taxable sales into the state exceed $100,000 in the current or prior calendar year.
State Effective Date: October 1, 2019
Marketplace adoption:
- Amazon (effective October 1, 2019)
- Ebay (effective October 1, 2019)
- Etsy (effective October 1, 2019)
Ohio
Marketplace facilitators in Ohio are now required to collect Ohio sales tax if they have already reached one or more of the nexus thresholds in the current calendar year (i.e., 2019) and/or the prior calendar year (i.e.,2018).
The law states that the first day the marketplace facilitator must begin collecting and remitting sales tax from Ohio consumers is September 1, 2019, filing the September return and remitting payment on or before October 23, 2019. NOTE: marketplace sales are included in the gross sales and are also included in the exempt sales
State Effective Date: September 1, 2019
Marketplace adoption:
- Amazon (effective September 1, 2019)
- eBay (effective September 1, 2019)
- Etsy (effective September 1, 2019)
- Walmart (effective September 1, 2019)
Oklahoma
Marketplace facilitators in Oklahoma are required to collect Oklahoma sales tax on behalf of third-party sellers or elect to comply with Oklahoma’s notice and report requirements.
The law also requires that remote sellers who make at least $10,000 in aggregate sales in Oklahoma in a 12-month period either collect sales tax or comply with notice and report requirements.
State Effective Date: July 1, 2018
Marketplace adoption:
- Amazon (effective July 1, 2018)
- eBay (effective July 1, 2019)
- Etsy (effective August 1, 2018)
- Walmart (effective January 2, 2019)
Pennsylvania
This law requires that marketplace facilitators in Pennsylvania either collect Pennsylvania sales tax on behalf of third-party sellers or elect to comply with Pennsylvania notice and report requirements.
State Effective Date: April 1, 2018
Marketplace adoption:
- Amazon (effective April 1, 2018)
- eBay (effective July 1, 2019)
- Etsy (effective April 1, 2018)
- Walmart (effective February 1, 2019)
Puerto Rico
Puerto Rico’s marketplace facilitator law states that marketplace facilitators who meet the territory’s definition of “Marketplace Facilitator” must collect sales tax on behalf of 3rd party sellers who utilize the marketplace.
Puerto Rico law defines marketplace facilitators as entities that facilitate the sales of tangible personal property, digital property or services by advertising, listing or promoting the sales of marketplace sellers or directly or indirectly collecting payment on behalf of the seller and transmitting it to the seller.
State Effective Date:The law took effect retroactively on January 1, 2020. However, updated legislation may have this law take effect on October 1, 2020. Stay tuned here for more info.
Marketplace adoption:
- Amazon (July 1, 2020)
- eBay (effective July 1, 2020)
- Etsy (effective April 1, 2021)
- Walmart (effective July 1, 2020)
Rhode Island
This law requires that marketplace facilitators are required to remit sales tax on all sales into the state if the economic thresholds of $100,000 or more in sales, or 200 or more separate transactions are met.
State Effective Date: July 1, 2019
Marketplace adoption:
- Amazon (effective July 1, 2019)
- eBay -(effective July 1, 2019)
- Etsy – (effective) July 1, 2019)
- Walmart – (effective July 1, 2019)
South Carolina
This law requires that marketplace facilitators are required to remit sales tax on all sales into the state if the economic thresholds of $100,000 or more in sales, are met. Note that inventory stored in an Amazon warehouse in South Carolina meets the physical presence criteria.
State Effective Date: February 1, 2019
Marketplace adoption:
- Amazon (effective April 29, 2019)
- Ebay (effective October 1, 2019)
- Etsy (effective February 1, 2019)
- Walmart (effective May 1, 2019)
South Dakota
This law requires that marketplace facilitators are required to remit sales tax on all sales into the state if the economic thresholds of 200 or more transactions into South Dakota, or $100,000 or more in sales, are met.
State Effective Date: March 1, 2019
Marketplace adoption:
- Amazon (effective 3/1/2019)
- eBay (effective July 1, 2019)
- Etsy (effective 3/1/2019)
- Walmart (effective 3/1/2019)
Tennessee
This law requires that marketplace facilitators who gross more than $500,000 in sales in the state during the previous 12-month period are required to collect and remit sales tax on behalf of third party marketplace sellers.
State Effective Date: October 1, 2020
Marketplace Adoption:
- Amazon (effective October 1, 2020)
- eBay (effective October 1, 2020)
- Etsy (effective October 1, 2020)
Texas
This law requires that marketplace facilitators are required to remit sales and use tax on all sales into the state. A remote seller that terminates its use tax responsibilities must resume collection on the first day of the second month following any 12 calendar months where their total Texas revenue exceeds $500,000.
State Effective Date: October 1, 2019
Marketplace adoption:
- eBay (effective October 1, 2019)
- Etsy (effective October 1, 2019)
- Walmart (effective October 1, 2019)
Utah
A marketplace facilitator must collect and remit sales or use tax on all sales into Utah if, in the previous or current calendar year, it has more than $100,000 in gross revenue in Utah, or makes at least 200 separate transactions in the state. When calculating the threshold, a marketplace should include all sales made through the platform, its own and third-party sales.
State Effective Date: October 1, 2019
Marketplace adoption:
- eBay (effective October 1, 2019)
- Etsy (effective October 1, 2019)
- Walmart (effective October 1, 2019)
Vermont
This law requires that marketplace facilitators are required to remit sales tax on all sales into the state if the economic thresholds of 200 or more transactions into Vermont, or $100,000 or more in sales, are met.
State Effective Date: June 4, 2019
Marketplace adoption:
- Amazon (effective June 7, 2019)
- eBay – (effective July 1, 2019)
- Etsy – (effective July 1, 2019)
- Walmart – (effective July 1, 2019)
Virginia
This law requires that marketplace facilitators are required to remit sales tax on all sales into the state if the economic thresholds of 200 or more transactions into Virginia, or $100,000 or more in sales, are met.
State Effective Date: July 1, 2019
Marketplace adoption:
- Amazon (effective July 1, 2019)
- eBay -(effective July 1, 2019)
- Etsy – (effective) July 1, 2019)
- Walmart – (effective July 1, 2019)
Washington, D.C.
This law requires that marketplace facilitators in Washington, D.C., to collect and remit sales tax to the District for District of Columbia sales made on their marketplaces effective as of April 1, 2019.
Marketplace adoption:
- Amazon (effective 4/1/2019)
- Ebay (effective 5/1/2019)
- Etsy (effective 4/1/2019)
- Walmart (effective 4/1/2019)
Washington
This law requires that marketplace facilitators in Washington collect Washington sales tax on behalf of third-party sellers. If a marketplace facilitator has economic nexus (B&O) with Washington, its commission income is subject to B&O tax under the Service and Other Activities classification for facilitated sales that are delivered or sourced to Washington.
Marketplace adoption:
- Amazon (effective January 1, 2018)
- eBay (effective January 1, 2019)
- Etsy (effective January 1, 2018)
- Walmart (effective October 1, 2018)
West Virginia
West Virginia has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective July 1, 2019.
State Effective Date: July 1, 2019
Marketplace adoption:
- Amazon (effective July 1, 2019)
- eBay -(effective July 1, 2019)
- Etsy – (effective) July 1, 2019)
- Walmart – (effective July 1, 2019)
Wisconsin
Wisconsin is now requiring Marketplaces to collect and remit sales tax on sales facilitated in Wisconsin through the marketplace if the economic nexus threshold of $100,000 or 200 transactions is triggered.
State Effective Date: January 1, 2020
Marketplace adoption:
Wyoming
Wyoming has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective July 1, 2019.
State Effective Date: July 1, 2019
Marketplace adoption:
As the laws evolve and more states become affected by marketplace facilitator laws, we will update them here. Because these laws are subject to change, you should always consult with the state’s department of revenue or a trusted tax advisor before making major decisions about your business.
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