On September 10, 2021, the California Department of Tax and Fee Administration (the CDTFA) proposed amendments to the CDTFA’s regulations governing drop shipments, in an effort to clarify that marketplace sales are not drop shipments. In October 2019, the California Marketplace Facilitator Act became effective, making marketplace facilitators the seller and retailer for sales facilitated

On September 9, California AB 1402 was enrolled and presented to Governor Newsom for his signature. The legislation requires marketplace facilitators to register, collect, and remit specified fees administered under the Fee Collection Procedures Law that are imposed upon the retail sale of tangible personal property in the state. Specifically, the legislation requires marketplace facilitators

Recent developments for Illinois’ marketplace facilitator tax law.

The latest

  • August 27 – Governor J.B. Pritzker signs S.B. 2066, which allows marketplace sellers to claim a retroactive retailers’ occupation tax credit for sales in 2020 for which a marketplace facilitator has already remitted tax.
  • July 23 – the IDOR publishes emergency rules with specific

The Alabama Department of Revenue issued a notice on July 26, 2021, providing guidance regarding tax compliance requirements for marketplace facilitators operating in the state. Marketplace facilitators provide a platform through which marketplace sellers make sales. A marketplace facilitator that facilitates retail sales of $250,000 or more into Alabama through its platform must register with

In this episode of the SALT Shaker Podcast policy series, Eversheds Sutherland attorneys Michele Borens and Samantha Trencs join Partner Nikki Dobay to discuss all things marketplace. They discuss recent marketplace legislation, other developments and state guidance (or lack thereof) and associated compliance challenges.

The Eversheds Sutherland State and Local Tax team has been engaged

The New Mexico Taxation and Revenue Department recently updated FYI-206, describing the gross receipts tax collection responsibilities for online marketplace providers and marketplace without physical presence in New Mexico. Marketplace providers and marketplace sellers with at least $100,000 of taxable gross receipts in New Mexico in the previous calendar year have a tax collection

In letter ruling ST 21-0003, the Illinois Department of Revenue considered sales made by a nonprofit organization that previously qualified for the isolated or occasional sale exemption to the Retailers’ Occupation Tax. The Organization requested guidance concerning whether the exemption would apply if it made sales through a marketplace facilitator. The Department responded that

On May 30, 2021, the Illinois Legislature passed S.B. 2066, which creates an exemption and retroactive credit for marketplace sellers for transactions in 2020 where tax was paid by the marketplace seller and the marketplace facilitator. Previously, Illinois’s marketplace law imposed a use tax (UT) obligation on a marketplace facilitator on all taxable sales

On May 7, 2021, the Washington Department of Revenue issued Excise Tax Advisory 3223.2021, providing guidance on the proper taxation of grocery food and restaurant delivery services provided through marketplace facilitators. Marketplace facilitators that are facilitating the retail sale of prepared food or groceries through its marketplace are responsible for collecting and remitting sales

Missouri is set to enact economic nexus requirements, asserting a sales and use tax collection obligation on remote sellers and marketplace facilitators. On May 14, 2021, the Missouri Legislature passed S.B. 153, which the governor is widely expected to sign. Upon signing, Missouri will join the other 44 states and the District of Columbia