State Internet Sales Tax Update

A year ago, the Supreme Court ruled on the South Dakota v. Wayfair case and now state legislators are taking action on Internet sales tax to capitalize on this. The eBay government relations team has been actively engaged across the country as individual states have considered Internet sales tax legislation.

To date, 31 states have enacted legislation establishing marketplace collection requirements and a number more are considering bills. We have included updates below on some of the state legislative activity over the past month.

Additionally, should you have questions or need further information on sales tax collection, we encourage you to visit this eBay Customer Service site that contains guidance for individual states. Please know that as states continue their efforts to establish marketplace collection requirements, eBay will work with lawmakers to promote workable tax policies which provide reasonable small business protections and streamline collecting and remitting standards across the states to avoid confusion, mistakes, and costly penalties.

Florida

The marketplace facilitator bill, SB 1112, died as the Legislature adjourned its session on May 4. Staunch opposition to Internet sales taxes from a majority of the Legislature stalled the bill’s progress and we do not expect any remote sales tax legislation to be passed in 2019. We do anticipate marketplace facilitator legislation to be introduced again when the Legislature next convenes in January.

Missouri

With the adjournment of the legislative session on May 17, the marketplace facilitator legislation died for the year. Like Florida, we do not anticipate any remote sales tax legislation to pass in 2019, but expect legislation to again be introduced when the Missouri legislature returns to session.

Louisiana

On May 13, HB 547 was substantially amended to remove marketplace facilitator language. The current version of the bill makes some changes to the remote seller sales tax law, which was put in to place before the Wayfair decision. Louisiana will likely take up marketplace facilitator legislation in 2020.

Maryland

HB 1301 became law without any action by Governor Larry Hogan (R) on May 25. eBay participated in numerous stakeholder discussions to improve the legislation. The marketplace facilitator provisions take effect October 1, 2019.

Colorado

Governor Jared Polis (D) signed the marketplace facilitator bill, HB 1240, on May 23. The marketplace facilitator collection requirements take effect October 1, 2019.

Massachusetts

The Senate approved its budget bill that included onerous provisions impacting marketplace facilitators and remote sellers. The debate will now move to a conference committee comprised of members of the House and Senate who will negotiate a final budget package to send to Governor Charlie Baker (R) over the next few weeks. eBay will continue to engage Massachusetts lawmakers to educate them on the implementation of post-Wayfair policies that minimize the impact to eBay sellers and users.

Texas

Governor Greg Abbott (R) signed the marketplace facilitator legislation, HB 1525, on May 24. The bill will take effect October 1, 2019.

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