Marketplace

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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. ...Read More

On February 9, 2021, Governor Laura Kelly announced a plan to add market facilitator collection and remittance to other tax related legislation, Senate Bill 22. The governor noted that Kansas is one of only three states that has not enacted marketplace facilitator provisions and that this change would allow Kansas “…to collect from fewer…

In February 2021, the Illinois Department of Revenue issued a Compliance Alert on the tax remittance obligations of remote retailers, marketplace sellers, and marketplace facilitators. It concluded that remote retailers and marketplace facilitators must collect and remit state and local retailers’ occupation taxes (ROT) administered by the Illinois Department of Revenue – including the Chicago…

State legislators have been actively proposing state tax legislation. In this webcast, Partners Jeff Friedman and Michele Borens provide an update on the latest legislative proposals across the country that will impact marketplace facilitators and sellers with Associate Sam Trencs.

Listen to the full webcast here, or view the presentation slides here.

On January 13, 2021, the governor of Kansas released her budget report for fiscal year 2022, which would require marketplace facilitators to begin collecting retail sales and compensating use taxes on sales to Kansas customers on July 1, 2021. The budget also contains a proposal to impose sales tax on all sales of digital property…

The Tennessee Department of Revenue posted Revenue Ruling #20-13 regarding whether a taxpayer is a marketplace facilitator subject to sales and use tax collection on sales made on its platform. The taxpayer in this ruling operates an online forum that connects retailers (mostly restaurants) with independent delivery persons. The definition of a marketplace facilitator in…

On December 18, SB 50 was filed in the Florida Senate which would require sales tax collection from a person whose remote sales to Florida exceed $100,000 per year. It states that a person whose “taxable remote sales in the previous calendar year” exceed $100,000 has a “substantial number of remote sales” and is therefore…

The California Department of Tax and Fee Administration has informed the public that it intends to commence formal rulemaking to permanently adopt Emergency Sales and Use Tax Regulation 1684.5, Marketplace Sales. The regulation addresses issues regarding marketplace facilitators’ and marketplace sellers’ registration and tax collection obligations. The Department asks for interested parties to submit…

A Missouri legislator pre-filed House Bill No. 244, which would require, beginning January 1, 2022, use tax nexus for remote vendors if their cumulative gross receipts from sales of tangible personal property, digital goods, and services to purchasers in Missouri is at least $100,000 annually.  The bill would also require, beginning no later than…

The pandemic has changed the physical and economic environment in which restaurants operate. Although food delivery has long been popular for certain types of food, pandemic restrictions and consumer preferences hastened the expansion of food delivery for almost all food and meals. Food delivery can be done either through the restaurant itself or through unrelated…