Post-Wayfair and marketplace facilitator midyear update

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June 2020

Overview

In 2020, a handful of states have enacted or are moving forward with sales and use tax collection and remittance requirements for remote sellers and marketplace facilitators. Louisiana will have a July 1 effective date for both remote sellers and marketplaces, while Tennessee has set an October 1 effective date for marketplaces. Mississippi’s marketplace facilitator bill, which would have a July 1 effective date, has been approved by the House and Senate. Further, several states either have adopted or proposed regulatory changes to clarify their remote seller and marketplace facilitator laws.

The takeaway

Now that it has been two years since the US Supreme Court’s Wayfair decision, the pace of state legislative reactions has slowed, although regulatory activity interpreting these laws has increased. Nearly every state imposing a sales tax has adopted economic nexus provisions. The two states without sales tax economic nexus -- Florida and Missouri -- failed to pass such standards for sellers before the end of their regular sessions this year. Further, the one state imposing economic nexus for sales tax without any threshold -- Kansas -- fell short of enacting such a standard in its regular and first special session. These measures could be considered in future special sessions, especially given the current and anticipated future strains on state and local budgets.

Contact us

Peter Michalowski

State and Local Tax Leader, PwC US

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