The United States Supreme Court radically altered the sales tax landscape in 2018 when it decided South Dakota v. Wayfair. In light of this Supreme Court decision, 45 states, plus the District of Columbia, have enacted laws that require marketplaces – businesses that connect sellers and buyers of goods and services – to collect sales and/or use taxes on marketplace transactions.
These marketplace collection laws vary significantly from state-to-state and have fundamentally changed how sales and use taxes are collected across the country. Broadening the impact, certain states have quietly revised their marketplace laws or guidance to apply outside of sales and use tax, to require collection of other taxes and fees, with limited clarity.
Keeping up with the wave of changes is not an easy task. Eversheds Sutherland’s State and Local Tax attorneys are monitoring these developments and the consequences that they have on marketplaces and sellers who engage in transactions on marketplaces.