The California Department of Tax and Fee Administration (CDTFA) revised its revised Publication 109, Internet Sales to add information relating to local sales taxes. Updated Publication 109 clarifies that online retailers are required to allocate sales among local jurisdictions, either directly or through a “countywide pool.” California generally imposes a 7.25% sales tax (with 1%
Illinois’ marketplace facilitator law – insights and analysis
Recent developments for Illinois’ marketplace facilitator tax law.
The latest
- October 1 – The Illinois Department of Revenue releases Sales and Use Tax Form CRT-63 “Sales Through Marketplace Facilitator Certificate.” (PDF). This certificate, which must be renewed annually, must be provided by marketplace facilitators to marketplace sellers. The certificate must be maintained with
California implements marketplace facilitator fee collection
On September 30, California Governor Gavin Newsom signed AB 1402, which amends California’s sales and use tax law to require marketplace facilitators to register, collect, and remit certain fees on the retail sale of various items of tangible personal property sold in California. Under current law, a marketplace facilitator that facilitates the retail sale
California proposes marketplace clarification for drop shippers
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
Join members of the SALT team during COST’s virtual 2021 State and Local Tax Webinar for the Tech Industry
Between August 11 and 13, members of the Eversheds Sutherland SALT team will help cover the key state and local tax issues technology companies are facing during COST’s virtual 2021 State and Local Tax Webinar for the Tech Industry.
Eversheds Sutherland SALT attorneys are presenting on several topics, including:
- Transfer Pricing in the Technology
Alabama issues marketplace facilitator guidance
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
Marketplace update
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
New Mexico updates guidance regarding taxation of marketplace sales
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
Tennessee Department of Revenue issues private letter ruling finding an online marketplace to not be a marketplace facilitator responsible for sales tax collection
The Tennessee Department of Revenue recently published Letter Ruling No. 21-05 (dated April 28, 2021) determining that an online marketplace was not a marketplace facilitator responsible for sales tax collection because it did not process payments. The taxpayer is creating an online platform that allows a network of independent dealers across the country to make
Illinois Legislature passes credit for marketplace sellers for double collected tax
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