eBay Updates List of States for Which It Will Collect Sales Tax

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eBay in its help section updates the number of states and effective dates for which it will collect sales tax.

Since last year’s US Supreme Court decision that effectively removed physical nexus as the deciding factor when a state can collect sales tax from a remote seller, states have enacted new laws that may require marketplaces to collect and remit sales tax on behalf of sellers.

Here is the current list of states for which they are or plan to collect sales tax. This list may change as state legislatures pass new laws and we will provide updates as needed.

  • 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
  • New Jersey – effective May 1, 2019
  • Alabama – effective July 1, 2019
  • Oklahoma – effective July 1, 2019
  • Pennsylvania – effective July 1, 2019

Sellers May Be Responsible Before eBay Starts Collecting Sales Tax

It is important to note that some effective dates are well beyond effective dates for Economic Nexus that may impact sellers.

There are also inconsistencies with effective dates of when eBay will collect sales tax and the listed state’s sales tax laws.

And a few states are not listed that have passed marketplace facilitator laws that technically should require eBay to collect sales tax but are not included on their latest list.

It is unclear why these inconsistencies exist and therefore sellers should consult with their accountant or legal professional for more advice.

Also, we have a Guide on Sales Tax that provides some additional information about reporting requirements.

What are your thoughts on this whole sales tax mess? Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.

And don’t forget to follow us on FacebookTwitter, and LinkedIn to stay up to date with important news and business insights for your online retail business.

3 COMMENTS

  1. HAHAHA catch me if you can, the only state i will pay any tax to is my own. Why doesnt Ebay step up and do the right thing. Collect it and pay it. What a joke

  2. My reaction was I cancelled and returned by refusing delivery- the first recent purchase- 3 shirts- that had tax added to it by Ebay AFTER checkout as a separate charge, and told Ebay to CLOSE my 20 year old account and why I was closing it.

  3. I’m not paying double taxes on money I already PAID taxes on- income tax- when I do the only thing with it you can do- spend it. I never paid tax on on-line purchases and I’m not starting now, no more buying anything unless it’s something I absolutely have to have- you need a battery for the car, tires, things like that but the rest- nope!

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