Our team of tax lawyers can help you navigate expanding US marketplace collection laws and their impact on both traditional and non-traditional marketplaces.
The United States Supreme Court radically altered the sales and use tax landscape when it decided South Dakota v. Wayfair in 2018. Since this decision, 45 states, plus the District of Columbia, have enacted laws that require marketplaces - businesses that connect sellers and buyers of goods and services - to collect sales and/or use taxes on marketplace transactions.
Keeping up with the wave of changes affecting marketplaces
These marketplace collection laws vary significantly from state-to-state and have fundamentally changed how sales and use taxes are collected across the country. Broadening the impact, certain states have quietly revised their marketplace laws or guidance to apply outside of sales and use tax, to require collection of other taxes and fees, with limited clarity.
Our State and Local Tax team monitors these developments and assists you with the consequences they have on both marketplaces, as well as sellers who engage in transactions on marketplaces.
From practical considerations in determining whether a state’s marketplace collection law applies to your business, to assistance with complying with marketplace collection laws, we can help you navigate this complex, and evolving, issue.