Wayfair Decission
税务和会计03 一月, 2023

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.

CCH Explanation: Alabama 60-025

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.

CCH Explanation: Arizona 60-025

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.

CCH Explanation: Arkansas 60-025

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.

CCH Explanation: California 60-025

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.

CCH Explanation: Colorado 60-025

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.

CCH Explanation: Connecticut 60-025

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

CCH Explanation: District of Columbia 60-025

D.C. Code Ann.
§47-2202,
D.C. Code Ann.
§47-3931
Florida Yes, effective July 1, 2021

Effective July 1, 2021, out-of-state retailers and marketplace providers with no physical presence in Florida are required to collect Florida’s sales and use tax on sales of taxable items delivered to purchasers in Florida if the out-of-state retailer or marketplace provider makes a substantial number of remote sales into Florida. A “substantial number of remote sales” is defined as any number of taxable remote sales in the previous calendar year in which the sum of the sales prices exceeded $100,000.

We recommend you reference cited authority for more information.

CCH Explanation: Florida 60-025

Fla. Stat. §212.0596, Fla. Stat. §212.05965
Georgia Yes

Effective April 1, 2020, for marketplace facilitators with sales within Georgia in the prior or current taxable year that exceed $100,000.

CCH Explanation: Georgia 60-025

Ga. Code. Ann. §48-8-2(8)(M.1)-(M.2), (8)(P), Ga. Code. Ann. §48-8-30(c.1)(1) 
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.

CCH Explanation: Hawaii 60-025

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.

CCH Explanation: Illinois 60-025

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.

CCH Explanation: Indiana 60-025

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.

CCH Explanation: Iowa 60-025

Iowa Code
§423.14A
Kansas Yes

A marketplace facilitator with annual gross receipts from sales sourced to Kansas in excess of $100,000, must collect and remit sales tax. Any marketplace facilitator who meets the $100,000 threshold for the first time in the current calendar year must collect tax on cumulative gross receipts from sales into the state in excess of $100,000 during the current calendar year. 

CCH Explanation: Kansas 60-025

AGO 2019-08, Uncodified Sec. 2, S.B. 50, Laws 2021 
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

CCH Explanation: Kentucky 60-025

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.

CCH Explanation: Louisiana 60-025

Maine Yes CCH Explanation: Maine 60-025 Me. Rev. Stat. Ann.
tit. 36, §1951-C
Maryland Yes CCH Explanation: Maryland 60-025 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.

CCH Explanation: Massachusetts 60-025

Mass Regs. Code tit. 830, §64H.1.7
Michigan Yes CCH Explanation: Michigan 60-025 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.

CCH Explanation: Minnesota 60-025

Minn. Stat.
§297A.66, Remote Seller FAQ 

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.

CCH Explanation: Mississippi 60-025

Miss. Code. Ann. §27-67-3 
Missouri Yes (effective January 1, 2023) 

Effective January 1, 2023, marketplace facilitators that engage in business activities within Missouri must register with the Department of Revenue to collect and remit use tax on sales delivered into Missouri through the marketplace facilitator's marketplace by or on behalf of a marketplace seller. Such retail sales include those made directly by the marketplace facilitator as well as those made by marketplace sellers through the marketplace facilitator's marketplace. 

We recommend you reference cited authority for more information.

CCH Explanation: Missouri 60-025

Mo. Rev. Stat. §144.752 
Nebraska Yes

Multivendor marketplace platforms with over $100,000 in sales or 200 or more transactions in the state annually, must collect tax.

CCH Explanation: Nebraska 60-025

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

CCH Explanation: Nevada 60-025

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.

CCH Explanation: New Jersey 60-025

New Jersey Division of Taxation, N.J. Stat. Ann. §54:32B-2, TB-83 
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.

CCH Explanation: New Mexico 60-025

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.

CCH Explanation: New York 60-025

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

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.

CCH Explanation: North Carolina 60-025

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.

CCH Explanation: North Dakota 60-025

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

CCH Explanation: Ohio 60-025

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

CCH Explanation: Oklahoma 60-025

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.

CCH Explanation: Pennsylvania 60-025

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 CCH Explanation: Rhode Island 60-025 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.

CCH Explanation: South Carolina 60-025

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

CCH Explanation: South Dakota 60-025

S.D. Codified Laws §10-45-2
Tennessee Yes

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.

CCH Explanation: Tennessee 60-025

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.

CCH Explanation: Texas 60-025

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.

CCH Explanation: Utah 60-025

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.

CCH Explanation: Vermont 60-025

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.

CCH Explanation: Virginia 60-025

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.

CCH Explanation: Washington 60-025

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.

CCH Explanation: West Virginia

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.

CCH Explanation: Wisconsin 60-025

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.

CCH Explanation: Wyoming 60-025

Wyo. Stat. Ann.
§39-15-502

 

Source: Wolters Kluwer CCH® AnswerConnect, 2022
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.

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