New Online Sales Tax Rules

[p7050]

I have been doing some research on the new online sales tax law that requires sellers to pay tax in other states if they sell over 200 items or 10,000 dollars, I have noticed some states are now are dropping the sales to 100 items per here and some are going to start collecting in october 2018 this is a good site to go to AvaTax it tells you all you need to know about all of the new laws and also Taxjar I dont know if this is true but i read some states are contacting ebay and wanting all of the sellers names and addresses which amazon has already done

[orangehound]

Sales tax is a minor concern for most. 

I think a lot of sellers should be more worried about states contacting PayPal and requesting that they issue 1099-MISC for those selling $600 or more ... only two states have done it thus far.

[the*dog*ate*my*tablecloth]

I took a quick look at Taxjar and the only State I saw with the 100 threshold was MA and that was combined with a $250,000 in sales requirement.

The whole point of the Supreme Court ruling was to get the money without burdening small sellers. At 100 only that would be considered burdensome to small sellers and would be appealed. I don't think the States will go that far.

What we have been seeing is Marketplace Facilitator laws start up where the marketplace like Amazon or Etsy are responsible for collecting and remitting the sales tax. Ebay may not have to do it yet because they don't collect payments and pay sellers. Once they transition to Adyen they will likely have to. 

BTW TaxJar exists to sell a product to sellers. I would take their projections with a grain of salt.

[p7050]

Think you are right I also sell on etsy and they pay the tax for PA,WA, Oklahoma starting 1 August here is another state trying to opt in 

Small seller exception

However, Minnesota does allow an exception for small sellers. The collection requirement isn’t triggered until an out-of-state seller’s sales in Minnesota total either: 

• 10 or more retail sales shipped to Minnesota totaling more than $100,000 during a period of 12 consecutive months; or
• 100 or more retail sales shipped to the state during a period of 12 consecutive months.

an out-of-state seller to collect and remit Utah sales and use taxes if in the previous or current calendar year that seller:

• Receives gross revenue from the sale of tangible personal property, any product transferred electronically, or services for storage, use, or consumption in the state of more than $100,000; or
• Sells tangible personal property, products transferred electronically, or services for storage, use, or consumption in the state in 200 or more separate transactions.
• Here is a nice site to see all the updates: www.avalara.com/us/en/blog.html

[antennastore]

Has eBay implemented the marketplace facilitor tax like Amazon has? 

[the*dog*ate*my*tablecloth]

Tax on sales to Washington and Minnesota started January first

[slippinjimmy]

Other States will be added, some in June others are up in the air at the moment.

If you sell only on marketplaces like eBay, Etsy, Amazon etc. the sales tax issue is a non-issue.

The only thing of concern to most eBay sellers is that they have lost the tax free competitive edge in the States that eBay will collect for.

[7606dennis]

Did your research mention that sellers are not required to pay sales tax but rather collect it from buyers and remit it to the required taxing authority.  It is the buyer that pays the sales tax.

Of course, many buyers were suppose to be paying USE Tax themselves.

[crafthound33]

so what do you do with the monies that were collected by ebay? State of Washington, do you send them to the State yourself because Ebay has told me that they aren't responsible at all.

[thevintagesilvershop]

---

@crafthound33 wrote:
so what do you do with the monies that were collected by ebay? State of Washington, do you send them to the State yourself because Ebay has told me that they aren't responsible at all.

---

You don't get the money.  Ebay collects and Ebay remits for the states that have enacted laws/rules upon this ruling.  But, for example, the state I live in, Colorado, has not enacted this yet, so I will submit the 2018 state sales taxes I collected to the State Revenue just as I am supposed to. 

---