Wayfair Decission
Tax & AccountingMarch 09, 2021

Sales & Use Tax Post-Wayfair Decision - Marketplace Nexus

Marketplace Nexus

This chart indicates whether a state has marketplace nexus provisions.

Note that state nexus statutes are subject to federal constitutional restrictions. However, in South Dakota v. Wayfair, Inc. (Dkt. No. 17-494, June 21, 2018), the U.S. Supreme Court overruled Quill Corp. v. North Dakota (504 U.S. 298 (1992)) and held that physical presence is no longer required to establish sales and use tax nexus.

 

STATE MARKETPLACE NEXUS COMMENTS CITATION
Alabama Yes

Marketplace facilitators with sales into Alabama made through the marketplace of $250,000 or more for the preceding 12 months, must either:

  • register with the Department of Revenue to collect and remit simplified sellers use tax on retail sales made through the marketplace facilitator’s marketplace by or on behalf of a marketplace seller that are delivered in Alabama, whether by the marketplace facilitator or another person, or
  • report such sales to the Department of Revenue and provide customer notifications

We recommend you reference cited
authority for more information.

Ala. Code
§40-23-190
Ala. Code
§40-23-191
Ala. Code
§40-23-199.2
Ala. Admin. Code r.
810-6-2-.90.04
SSUT Marketplace
FAQs
Arizona Yes Effective Oct. 1, 2019 for marketplace facilitators with gross retail proceeds or income over $100,000 annually.
Ariz. Rev. Stat.
§42-5043
Arkansas Yes A marketplace facilitator is required
to collect sales tax if, in the previous or current calendar year, it had aggregate sales within the state, or deliveries to locations within the state, exceeding:
$100,000; or 200 transactions.
Ark. Code. Ann.
§26-52-103
Ark. Code. Ann.
§26-53-124
Ark. Code. Ann.
§26-53-111
California Yes

Applicable October 1, 2019, a marketplace facilitator is considered the seller and retailer for each sale
facilitated through its marketplace.
Such a facilitator that meets both
of the following requirements is
the retailer selling or making the
sale of tangible personal property
sold through its marketplace:

  • the marketplace facilitator is
    registered or is required to register
    with the California Department
    of Tax and Fee Administration
    (CDTFA); and
  • the marketplace facilitator facilitates a retail sale of property by a marketplace seller. As such, the marketplace facilitator will generally be required to pay sales tax or collect and remit use tax on all retail sales of tangible merchandise for delivery to California purchasers facilitated through its marketplace for marketplace sellers.

We recommend you reference cited
authority for more information.

Cal. Rev. & Tax. Code §6043
Colorado Yes Effective Oct. 1, 2019 for
marketplace facilitators with retail
sales of tangible personal property,
commodities, or specified services
that exceeded $100,000 in the
previous year.
Colo. Rev. Stat.
§39-26-102
Connecticut Yes

Effective December 1, 2018, a
marketplace facilitator will be
considered the retailer of each
sale the facilitator facilitates on
its forum for a marketplace seller.
Each marketplace facilitator:

  • must collect and remit tax for each
    such sale
  • is responsible for all sales and use tax obligations as if such marketplace facilitator was the retailer of such sale; and
  • must keep such records and information as may be required by the Commissioner of Revenue Services to ensure proper tax collection and remittance

We recommend you reference cited
authority for more information.

Conn. Gen. Stat. §1
2-407(a)(12)
Conn. Gen. Stat.
§12-408e
District of Columbia Yes

Effective April 1, 2019, for marketplace facilitators with

  • retail sales of at least $100,000 into DC, or
  • 200 or more separate sales into DC
D.C. Code Ann.
§47-2201,
D.C. Code Ann.
§47-3931
Florida No
Georgia No Effective April 1, 2020, for
marketplace facilitators with sales
within Georgia in the prior or
current taxable year that exceed
$100,000.
Ga. Code. Ann. §48-
8-30(c.1)(1)
Ga. Code. Ann. §4
8-8-2(8)(M.1)-(M.2), (8)(P)
Hawaii Yes Effective January 1, 2020,
marketplace facilitators are
the sellers of tangible personal
property, intangible property or
services for sales and use tax
purposes.
Haw. Rev. Stat.
§237-2.5
Idaho Yes

A “marketplace facilitator” must register with the Commission, collect, report, and remit state-level Idaho sales and use tax on sales they facilitate in their marketplace if they meet either set of these criteria:

  • they lack physical presence in Idaho and have over $100,000 in Idaho sales in the previous or current calendar year. In such a case, their own sales and the sales they facilitate are included in the threshold calculation; or
  • they have physical presence in Idaho and have not previously facilitated a retail sale in the state. In such a case, they have 45 days to comply with the registration, collection, and remittance requirements upon completing their first facilitated Idaho retail sale

We recommend you reference cited authority for more information.

Idaho Code
§63-3620E
Illinois Yes (effective January 1, 2020)

Effective January 1, 2020, a marketplace facilitator that meets either of the following economic thresholds will be a retailer required to collect and remit sales and use tax:

  • the total revenues from sales by the marketplace facilitator and marketplace sellers are $100,000 or more; or
  • the marketplace facilitator and marketplace sellers enter into 200 or more sales transactions

We recommend you reference cited authority for more information.

35 ILCS 105/2d
35 ILCS 110/2d
Indiana Yes

Effective July 1, 2019, marketplace facilitators are retail merchants when they engage in certain activities for sellers on their marketplace. The marketplace may be physical or on the internet. A marketplace facilitator must register, collect, and remit sales and use tax if it has economic nexus with Indiana and the retailer itself does not have nexus with Indiana.

We recommend you reference cited authority for more information.

Ind. Code §6-2.5-1-21.9
Iowa Yes Marketplaces are required to collect Iowa sales tax on behalf of sellers using the marketplace. A remote seller must collect Iowa sales tax if it sells $100,000 or more in products and/or services. Iowa Code
§423.14A
Kansas No AGO 2019-08
Kentucky Yes

Effective July 1, 2019, for marketplace facilitators with:

  • retail sales of at least $100,000 into KY, or
  • 200 or more separate sales into KY
Ky. Rev. Stat. Ann.
§139.340
Ky. Rev. Stat. Ann.
§139.450
Louisiana No Remote sellers selling through a marketplace or similar arrangement may register and voluntarily collect.
Maine Yes Me. Rev. Stat. Ann.
tit. 36, §1951-C
Maryland Yes Md. Code Ann.
11-403.1
Massachusetts Yes Effective October 1, 2019, for marketplace facilitators with sales within Massachusetts in the prior or current taxable year that exceed $100,000. Mass Regs. Code tit. 830, §64H.1.7
Michigan Yes Mich. Comp. Laws
§205.52d
Minnesota Yes

Remote marketplace providers must collect and remit tax if, over the prior 12-month period, they make either:

  • 200 or more retail sales shipped to Minnesota; or
  • $100,000 or more in retail sales shipped to Minnesota

We recommend you reference cited authority for more information.

Minn. Stat.
§297A.66

Remote Seller FAQs

Mississippi Yes

Effective July 1, 2020, a "person
doing business in this state,"
who is consequently required to
collect and remit sales or use tax,
includes any marketplace facilitator,
marketplace seller, or remote seller
with sales that exceed $250,000 in
any consecutive 12-month period.

We recommend you reference cited
authority for more information.

Mississippi 60-025
Missouri No
Nebraska Yes Multivendor marketplace platforms with over $100,000 in sales or 200 or more transactions in the state annually, must collect tax. Neb. Rev. Stat.
§77-2701.13
Nevada Yes

Effective October 1, 2019, for marketplace facilitators with:

  • cumulative gross receipts exceeding $100,000 from retail sales in Nevada, or;
  • at least 200 separate retail sales transactions in Nevada in the current or preceding calendar year
Nev. Rev. Stat.
§372.105
Nev. Rev. Stat.
§374.110
Nev. Rev. Stat.
§377.040
Reg. No. R189-18
New Jersey Yes

A marketplace facilitator is required to collect tax on sales of tangible personal property, specified digital products, and services delivered into New Jersey, which are made by a marketplace seller through any physical or electronic marketplace owned, operated, or controlled by the marketplace facilitator.

We recommend you reference cited authority for more information.

N.J. Stat. Ann.
§54:32B-2
TB-83
New Jersey Division
of Taxation
New Mexico Yes As part of the economic nexus rules, gross receipts subject to the tax includes receipts collected by a marketplace provider from sales, leases and licenses of tangible personal property; and sales of licenses and sales of services or licenses for use of real property that are sourced to New Mexico. N.M. Stat. Ann.
§7-9-4
New York Yes

A marketplace provider that has no physical presence in New York, but meets the following requirements in the immediately preceding four sales tax quarters, is required to register and collect/remit sales tax:

  • makes or facilitates more than $500,000 in sales of tangible personal property delivered in New York, and
  • makes or facilitates more than 100 sales of tangible personal property delivered in New York

We recommend you reference cited authority for more information.

N.Y. Tax Law, §110
1(b)(8)(i)(E)
N.Y. Tax Law, §110
1(b)(8)(iv)
Important Notice
N-19-1
TSB-M-19(2.1)S
North Carolina Yes, effective February 1, 2020

A marketplace facilitator that that
is, for sales and use tax purposes,
engaged in business in North
Carolina is:

  • considered the retailer of each marketplace-facilitated sale it makes and is liable for collecting and remitting the sales and use tax on all such sales; and
  • required to comply with the same requirements and procedures as all other retailers registered or who are required to be registered to collect and remit sales and use tax in North Carolina

Being engaged in business for
these purposes includes making
marketplace-facilitated sales.

In addition, remote marketplace
facilitators who meet the economic
nexus threshold (more than
$100K in sales or 200 transactions
sourced to North Carolina) are
required to register and collect and
remit sales or use taxes.

We recommend you reference cited
authority for more information.

N.C. Gen. Stat.
§105-164.8
N.C. Gen. Stat.
§105-164.4J
North Dakota Yes Effective October 1, 2019, for marketplace facilitators with more than $100,000 in gross sales in North Dakota in the current or previous calendar year. N.D. Cent. Code §5
7-39.2-02.2
N.D. Cent. Code §5
7-40.2-02.3, N.D. Cent. Code §5
7-39.2-02.3
N.D. Cent. Code §5
7-40.2-02.4
Remote Seller Sales Tax, North Dakota
Office of State Tax Commissioner
Ohio Yes

A marketplace facilitator has substantial nexus if, in the current or preceding calendar year, it:

  • has gross receipts exceeding $100,000 from sales into Ohio, or
  • engages in 200 or more separate sales transactions in Ohio
Ohio Rev. Code
Ann. §5741.01
Oklahoma Yes

A “marketplace facilitator” or “referrer” lacking physical Oklahoma presence who had at least $10,000 in aggregate Oklahoma sales in the preceding 12-calendar-month period, must file an election with the Oklahoma Tax Commission to

  • collect and remit sales and use tax due on tangible personal property and obtain a sales tax permit, or
  • comply with notice and reporting requirements
Okla. Stat. tit. 68,
§1392
Pennsylvania Yes A marketplace facilitator that meets the $100,000 economic nexus threshold must collect tax on all Pennsylvania sales. This applies even if the sale is on behalf of a marketplace seller that does not have any nexus with Pennsylvania. 72 P.S. §7213.1(a)
72 P.S. §7201(b)(3.
5)
Sales and Use Tax Bulletin 2019-01
Uncodified Sec. 33,
Act 13 (H.B. 262), Laws 2019
Rhode Island Yes R.I. Gen. Laws
§44-18.2-3
South Carolina Yes Economic nexus occurs when gross sales into South Carolina are more than $100,000 in this or the last calendar year. S.C. Code Ann.
§12-36-1340
South Dakota Yes

Effective March 1, 2019, for marketplace facilitators with:

  • $100,000 or more in gross sales in South Dakota; or
  • at least 200 separate retail sales transactions in Nevada in the current or preceding calendar year
S.D. Codified Laws
§10-45-2
Tennessee Yes (effective October
1, 2020)

Effective October 1, 2020, a
marketplace facilitator who made or
facilitated total sales to consumers
in Tennessee that exceeded
$100,000 during the previous 12-
month period must collect and remit
sales or use taxes.

We recommend you reference cited
authority for more information.

Tenn. Code. Ann.
§67-6-501
Tenn. Code. Ann.
§67-6-102
Tenn. Code. Ann.
§67-6-501
Texas Yes Effective October 1, 2019, for marketplace providers with $500,000 or more in gross revenue from sales into Texas. 34 Tex. Admin.
Code §3.286
Utah Yes

Marketplace facilitators are required to collect tax if, in the previous or current calendar year, the marketplace facilitator makes sales on behalf of or facilitates sales on behalf of one or more marketplace sellers that:

  • have more than $100,000 in gross revenue in the state or
  • make at least 200 separate transactions in the state

We recommend you reference cited authority for more information.

Utah Code Ann.
§59-12-102
Utah Code Ann.
§59-12-107.6
Vermont Yes

Effective June 1, 2019, the definition of "vendor" is expanded to include:

  • a marketplace facilitator who has facilitated sales by marketplace sellers to destinations within Vermont of at least $100,000, or totaling at least 200 individual sales transactions, during any 12-month period preceding the monthly period with respect to which that person's sales and use tax liability is determined; and
  • a marketplace seller who has combined sales to a destination within Vermont and sales through a marketplace to a destination within Vermont of at least $100,000, or totaling at least 200 individual sales transactions, during any 12-month period preceding the monthly period with respect to which that person's sales and use tax liability is determined

Moreover, the definition of "persons required to collect tax" also is expanded to include marketplace facilitators with respect to retail sales made on behalf of a marketplace seller.

We recommend you reference cited authority for more information.

Vt. Stat. Ann. tit. 32,
§9701
Vt. Stat. Ann. tit. 32,
§9713
Virginia Yes

Marketplace facilitators are required to register, collect and remit retail sales and use tax if the facilitator engages in certain activities on a marketplace platform and exceeds the state's economic threshold. The economic threshold is:

  • more than $100,000 in annual gross revenue from sales in Virginia; or
  • at least 200 sales transactions in Virginia

We recommend you reference cited authority for more information.

Va. Code Ann.
§58.1-612
Guidelines for
Remote Sellers
and Marketplace
Facilitators
Washington Yes Marketplace facilitators with more than $100,000 in cumulative gross receipts in Washington in the current or prior calendar year are required to collect tax. Wash. Rev. Code
§82.08.0531
West Virginia Yes

Collection requirements are applicable to sales by marketplace facilitators or referrers made on and after July 1, 2019. A marketplace facilitator, referrer, or remote seller is required to collect sales and use tax when:

  • the marketplace facilitator, referrer, or remote seller makes or facilitates West Virginia sales on its own behalf or on behalf of one or more marketplace sellers equal to or exceeding $100,000 in gross revenue for an immediately preceding or current calendar year; or
  • the marketplace facilitator, referrer, or remote seller makes or facilitates West Virginia sales on its own behalf or on behalf of one or more marketplace sellers in 200 or more separate transactions for an immediately preceding or current calendar year.

We recommend you reference cited authority for more information.

W. Va. Code
§11-15A-6b
Wisconsin Yes Effective January 1, 2020, a marketplace provider is liable for the tax imposed on the entire sales price charged to the purchaser, including any amount charged by the marketplace provider for facilitating the sale, from the sale, license, lease or rental of tangible personal property, or items, property, or goods or services. Wis. Stat.
§77.51(13gm)
Wyoming Yes

Marketplace facilitators are subject to the economic nexus thresholds:

  • over $100,000 in sales to Wyoming; or
  • 200 or more transactions in the current or prior calendar year

Remote sellers with over $100,000 in sales to Wyoming or 200 or more transactions in the current or prior calendar year, have nexus.

We recommend you reference cited authority for more information.

Wyo. Stat. Ann.
§39-15-502

 

Source: Wolters Kluwer CCH® AnswerConnect, 2021
Permission for use granted.


Carol Kokins-Graves
Senior Content Management Analyst

Carol Kokinis-Graves, an attorney, is a senior content management analyst in the Indirect Tax Group at Wolters Kluwer Tax & Accounting. She has spent more than 23 years analyzing and reporting state and local sales and use tax legislation, court cases, department of revenue rulings, and regulations. Carol is a speaker on state and local tax issues and has been quoted in top media publications, including Forbes, NBC News, The Los Angeles Times, and USA Today.