Multi-State – Georgia, Arizona Legislatures Consider Economic Nexus and Marketplace Facilitator Laws


A bill that would require online retailers and marketplace facilitators to collect and remit sales tax in Arizona was introduced in the state’s House of Representatives on Wednesday, February 13. Meanwhile, on Monday, March 4, the Georgia House of Representatives passed bills that would lower the threshold for determining remote retailers’ sales tax obligation.

The proposed Arizona legislation, introduced by Rep. Ben Toma and 24 co-sponsors, including 14 Republicans and 10 Democrats, would expand sales tax nexus to include online sellers that conduct at least 200 transactions or gross more than $100,000 in Arizona. Marketplace facilitators that facilitate sales for third-parties, like Amazon Marketplace or eBay, would also be required to collect and remit sales tax if the gross proceeds of the facilitator’s sales in the state on its own behalf or on behalf of at least one marketplace seller is more than $100,000, or if the facilitator engages in at least 200 transactions.

Georgia House Bill 182 would lower the threshold to constitute economic nexus for online sellers conducting business in the state. If enacted, retailers with gross sales of at least $100,000 in the state would be required to collect and remit sales tax on those sales to Georgia. Currently, the threshold for the requirement for Georgia is $250,000.

Additionally, the Georgia House passed House Bill 276, which would require facilitators that meet the $100,000 threshold for in-state gross sales to collect and remit sales tax on behalf of their third-party sellers. House Ways & Means Chairman Brett Harrell sponsored both bills.

The bills represent the states’ responses to the U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair. The case reevaluated the Supreme Court’s 1992 Quill v. North Dakota decision, which prevented states from requiring retailers without nexus, that is, a physical presence in that state — such as a store, office, warehouse, or sales agent — to collect and remit sales tax to the state. The 2018 decision meant that states can legally require out-of-state sellers that conduct a significant amount of business in-state to collect and remit sales tax.


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by maria peroni
march 6, 2019