eBay latest update doubles number of states where the marketplace must collect sales tax

eBay Sales Tax Update

This week eBay updated the list of states for which it will be required to collect sales tax. We highlighted the newest editions in red in the list below.

More states are likely going to be added this year as more legislatures are passing laws to enforce sales tax collection from remote sellers and marketplaces.

  • Minnesota – effective January 1, 2019 (However, Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions.)
  • Washington – effective January 1, 2019
  • Iowa – effective February 1, 2019
  • Connecticut – effective April 1, 2019
  • District of Columbia – effective May 1, 2019
  • New Jersey – effective May 1, 2019
  • Nebraska – effective May 1, 2019
  • Idaho – effective June 1, 2019
  • New York – effective June 1, 2019
  • Alabama – effective July 1, 2019
  • Arkansas – effective July 1, 2019
  • Indiana – effective July 1, 2019
  • Kentucky – effective July 1, 2019
  • New Mexico – effective July 1, 2019
  • Oklahoma – effective July 1, 2019
  • Pennsylvania – effective July 1, 2019
  • Rhode Island – effective July 1, 2019
  • South Dakota – effective July 1, 2019
  • Virginia – effective July 1, 2019
  • West Virginia – effective July 1, 2019
  • Wyoming – effective July 1, 2019
  • Vermont – effective July 1, 2019
  • California – effective October 1, 2019
  • North Dakota – effective October 1, 2019
  • South Carolina – effective October 1, 2019
  • Texas – effective October 1, 2019
  • Utah – effective October 1, 2019

Marketplace Facilitator Laws

The passing of new Marketplace Facilitator laws make it a requirement for eBay to collect sales tax to shipments going to these states.

There is nothing a seller needs to do to comply. However, if a recipient is tax exempt, eBay has instructions for how buyers must register with eBay to to prove their tax-exempt status.

READ MORE: The Fuzzy Math by States in Sales Tax Case South Dakota v. Wayfair


What do you think about states going after small business sales for sales tax on marketplaces like eBay? Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
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4 COMMENTS

  1. Great. So now we’re going to be nickeled and dimed to death on flipping sales tax! Our homes were recently reevaluated as well-thousands that have had their home owner taxes triple. This is going to cripple people who can barely afford to pay the “new” shipping rates Ebay posted not long ago. Can guarantee that I won’t be shopping online where I have to not only pay crazy shipping fees but now I’ll also be sales taxed to death. Who’s pocketing that money?

  2. same here this will curtail my on line buying, on top of that had planed to start selling on e bay later this year , now will be on hold or not at all once I get more info on this not needed taxation

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