Sales & use tax post-Wayfair decision - marketplace nexus

Marketplace facilitators with sales into Alabama made through the marketplace of $250,000 or more for the preceding 12 months, must either:

• register with the Department of Revenue to collect and remit simplified sellers use tax on retail sales made through the marketplace facilitator’s marketplace by or on behalf of a marketplace seller that are delivered in Alabama, whether by the marketplace facilitator or another person, or
• report such sales to the Department of Revenue and provide customer notifications

We recommend you reference cited authority for more information.

CCH Explanation: Alabama 60-025

A marketplace facilitator is required to collect sales tax if, in the previous or current calendar year, it had aggregate sales within the state, or deliveries to locations within the state, exceeding: $100,000; or 200 transactions.

CCH Explanation: Arkansas 60-025

Applicable October 1, 2019, a marketplace facilitator is considered the seller and retailer for each sale facilitated through its marketplace. Such a facilitator that meets both of the following requirements is the retailer selling or making the sale of tangible personal property sold through its marketplace:

• the marketplace facilitator is registered or is required to register with the California Department of Tax and Fee Administration (CDTFA); and
• the marketplace facilitator facilitates a retail sale of property by a marketplace seller. As such, the marketplace facilitator will generally be required to pay sales tax or collect and remit use tax on all retail sales of tangible merchandise for delivery to California purchasers facilitated through its marketplace for marketplace sellers.

We recommend you reference cited authority for more information.

CCH Explanation: California 60-025

Effective December 1, 2018, a marketplace facilitator will be considered the retailer of each sale the facilitator facilitates on its forum for a marketplace seller. Each marketplace facilitator:

• must collect and remit tax for each such sale
• is responsible for all sales and use tax obligations as if such marketplace facilitator was the retailer of such sale; and
• must keep such records and information as may be required by the Commissioner of Revenue Services to ensure proper tax collection and remittance

We recommend you reference cited authority for more information.

CCH Explanation: Connecticut 60-025

Effective April 1, 2019, for marketplace facilitators with:

• retail sales of at least $100,000 into DC, or
• 200 or more separate sales into DC

CCH Explanation: District of Columbia 60-025

Effective April 1, 2020, for marketplace facilitators with sales within Georgia in the prior or current taxable year that exceed $100,000.

CCH Explanation: Georgia 60-025

Effective January 1, 2020, marketplace facilitators are the sellers of tangible personal property, intangible property or services for sales and use tax purposes.

CCH Explanation: Hawaii 60-025

A “marketplace facilitator” must register with the Commission, collect, report, and remit state-level Idaho sales and use tax on sales they facilitate in their marketplace if they meet either set of these criteria:

• they lack physical presence in Idaho and have over $100,000 in Idaho sales in the previous or current calendar year. In such a case, their own sales and the sales they facilitate are included in the threshold calculation; or
• they have physical presence in Idaho and have not previously facilitated a retail sale in the state. In such a case, they have 45 days to comply with the registration, collection, and remittance requirements upon completing their first facilitated Idaho retail sale

We recommend you reference cited authority for more information.

Effective January 1, 2020, a marketplace facilitator that meets either of the following economic thresholds will be a retailer required to collect and remit sales and use tax:

• the total revenues from sales by the marketplace facilitator and marketplace sellers are $100,000 or more; or
• the marketplace facilitator and marketplace sellers enter into 200 or more sales transactions

We recommend you reference cited authority for more information.

CCH Explanation: Illinois 60-025

Effective July 1, 2019, marketplace facilitators are retail merchants when they engage in certain activities for sellers on their marketplace. The marketplace may be physical or on the internet. A marketplace facilitator must register, collect, and remit sales and use tax if it has economic nexus with Indiana and the retailer itself does not have nexus with Indiana.

We recommend you reference cited authority for more information.

CCH Explanation: Indiana 60-025

Marketplaces are required to collect Iowa sales tax on behalf of sellers using the marketplace. A remote seller must collect Iowa sales tax if it sells $100,000 or more in products and/or services.

CCH Explanation: Iowa 60-025

Effective July 1, 2019, for marketplace facilitators with:

• retail sales of at least $100,000 into KY, or
• 200 or more separate sales into KY

CCH Explanation: Kentucky 60-025

CCH Explanation: Maryland 60-025

Remote marketplace providers must collect and remit tax if, over the prior 12-month period, they make either:

• 200 or more retail sales shipped to Minnesota; or
• $100,000 or more in retail sales shipped to Minnesota

We recommend you reference cited authority for more information.

CCH Explanation: Minnesota 60-025

Effective October 1, 2019, for marketplace facilitators with:

• cumulative gross receipts exceeding $100,000 from retail sales in Nevada, or;
• at least 200 separate retail sales transactions in Nevada in the current or preceding calendar year

CCH Explanation: Nevada 60-025

Sales tax collection is required in New Jersey if, during the current or prior calendar year, a remote seller exceeds:  

• $100,000 in gross revenue from delivery of tangible personal property, specific digital products, or services into New Jersey; or  
• 200 or more separate transactions in New Jersey.   

We recommend you reference cited authority for more information. 

CCH Explanation: New Jersey 60-025

A business that has no physical presence in New York, but meets the following requirements in the immediately preceding four sales tax quarters, is required to register and collect/remit sales tax:  

• makes more than $500,000 in sales of tangible personal property delivered in New York, and  
• makes more than 100 sales of tangible personal property delivered in New York.  

We recommend you reference cited authority for more information.

CCH Explanation: New York 60-025

Out-of-state sellers with no physical presence in North Dakota are subject to sales and use tax if, in the previous calendar year or the current calendar year the seller's gross sales from the sale of tangible personal property and other taxable items delivered in North Dakota exceed $100,000. 

Such a seller is required to remit sales or use tax and must follow all applicable procedures and requirements as if the seller has a physical presence in North Dakota.  
 
Remote sellers must register and begin collecting North Dakota sales and use tax on the earlier of: 

• 60 days after meeting the threshold, or 
• the following calendar year. 

NOTE: Previously, North Dakota had a 200 or more separate transactions threshold, too. It was eliminated retroactively to tax years beginning on or after January 1, 2019. 
 
Effective October 1, 2019, a marketplace facilitator meeting the $100,000 in sales threshold is required to collect tax on sales of property and services delivered into North Dakota, which are made by a marketplace seller through the marketplace facilitator. 
 
We recommend you reference cited authority for more information.

CCH Explanation: North Dakota 60-025

Remote sellers: By July 1, 2018, and by June 1 of each calendar year starting in 2019, a “remote seller” who had at least $10,000 ($100,000 effective November 1, 2019) in aggregate Oklahoma sales in the preceding 12-calendar-month period must file an election with the Oklahoma Tax Commission to: 

• collect and remit sales and use tax due on tangible personal property and obtain a sales tax permit, or 
• through October 31, 2019, comply with notice and reporting requirements. The notice and reporting option is no longer available to remote sellers effective November 1, 2019. 

Marketplace facilitators and referrers: By July 1, 2018, and by June 1 of each calendar year starting in 2019, a “remote seller,” “marketplace facilitator,” or “referrer” who had at least $10,000 in aggregate Oklahoma sales in the preceding 12-calendar-month period must file an election with the Oklahoma Tax Commission to: 

• collect and remit sales and use tax due on tangible personal property and obtain a sales tax permit, or 
• comply with notice and reporting requirements.  

CCH Explanation: Oklahoma 60-025

A marketplace facilitator that meets the $100,000 economic nexus threshold must collect tax on all Pennsylvania sales. This applies even if the sale is on behalf of a marketplace seller that does not have any nexus with Pennsylvania.

CCH Explanation: Pennsylvania 60-025

Effective March 1, 2019, for marketplace facilitators with:

• $100,000 or more in gross sales in South Dakota; or
• at least 200 separate retail sales transactions in Nevada in the current or preceding calendar year

CCH Explanation: South Dakota 60-025

Effective October 1, 2020, a marketplace facilitator who made or facilitated total sales to consumers in Tennessee that exceeded $100,000 during the previous 12-month period must collect and remit sales or use taxes.

We recommend you reference cited authority for more information.

CCH Explanation: Tennessee 60-025

Effective October 1, 2019, for marketplace providers with $500,000 or more in gross revenue from sales into Texas.

CCH Explanation: Texas 60-025

Marketplace facilitators are required to collect tax if, in the previous or current calendar year, the marketplace facilitator makes sales on behalf of or facilitates sales on behalf of one or more marketplace sellers that:

• have more than $100,000 in gross revenue in the state or
• make at least 200 separate transactions in the state

We recommend you reference cited authority for more information.

CCH Explanation: Utah 60-025

Effective June 1, 2019, the definition of "vendor" is expanded to include:

• a marketplace facilitator who has facilitated sales by marketplace sellers to destinations within Vermont of at least $100,000, or totaling at least 200 individual sales transactions, during any 12-month period preceding the monthly period with respect to which that person's sales and use tax liability is determined; and
• a marketplace seller who has combined sales to a destination within Vermont and sales through a marketplace to a destination within Vermont of at least $100,000, or totaling at least 200 individual sales transactions, during any 12-month period preceding the monthly period with respect to which that person's sales and use tax liability is determined

Moreover, the definition of "persons required to collect tax" also is expanded to include marketplace facilitators with respect to retail sales made on behalf of a marketplace seller.

We recommend you reference cited authority for more information.

CCH Explanation: Vermont 60-025

Marketplace facilitators are required to register, collect and remit retail sales and use tax if the facilitator engages in certain activities on a marketplace platform and exceeds the state's economic threshold. The economic threshold is:

• more than $100,000 in annual gross revenue from sales in Virginia; or
• at least 200 sales transactions in Virginia

We recommend you reference cited authority for more information.

CCH Explanation: Virginia 60-025

Collection requirements are applicable to sales by marketplace facilitators or referrers made on and after July 1, 2019. A marketplace facilitator, referrer, or remote seller is required to collect sales and use tax when:

• the marketplace facilitator, referrer, or remote seller makes or facilitates West Virginia sales on its own behalf or on behalf of one or more marketplace sellers equal to or exceeding $100,000 in gross revenue for an immediately preceding or current calendar year; or
• the marketplace facilitator, referrer, or remote seller makes or facilitates West Virginia sales on its own behalf or on behalf of one or more marketplace sellers in 200 or more separate transactions for an immediately preceding or current calendar year.

We recommend you reference cited authority for more information.

CCH Explanation: West Virginia

Marketplace facilitators are subject to the economic nexus thresholds:

• over $100,000 in sales to Wyoming; or
• 200 or more transactions in the current or prior calendar year

Remote sellers with over $100,000 in sales to Wyoming or 200 or more transactions in the current or prior calendar year, have nexus.

We recommend you reference cited authority for more information.

CCH Explanation: Wyoming 60-025