Since the decision by The US Supreme Court in South Dakota v. Wayfair, states have been busy revising laws trying to take advantage of the ruling.
This week Etsy updated the list of states for which the marketplace is required to collect sales tax on behalf of sellers. The reason Etsy has to collect the tax is that these states passed so called Marketplace Facilitator Sales Tax Laws.
This laws make marketplace responsible for the collection of the sales tax on purchases made by buyers on the platform.
However, sellers can still be individually responsible for collecting sales tax in other states. Please see our State Sales Tax Guide for more information.
Etsy List of States and Effective Dates of Sales Tax Collection
|Washington||January 1, 2018|
|Pennsylvania||April 1, 2018|
|Oklahoma||August 1, 2018|
|Minnesota||October 1, 2018|
|Iowa||February 1, 2019|
|Connecticut||February 1, 2019|
|South Carolina||February 1, 2019|
|South Dakota||March 1, 2019|
|New Jersey||April 1, 2019|
|District of Columbia||April 1, 2019|
|Alabama||July 1, 2019|
What are your thoughts on this sales tax mess the 2018 US Supreme Court ruling created? Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.