Multi-State – eBay Forced To Collect Sales Tax In More States In 2019


In July, three more states passed marketplace facilitator laws that will impact sales tax on eBay and other marketplaces.

Marketplace facilitator sales tax laws place the requirement to collect sales tax on marketplaces instead of individual sellers.

For those sellers that only use marketplaces, this simplifies the sales tax “problem” created after the US Supreme Court decision in June of 2018.

However, sellers who use marketplaces and their own website to sell products may need to contact their accountant for details on how sales tax impacts their business.

List of states with marketplace facilitator laws

Based on laws passed to date, eBay will collect sales tax on transactions when buyers are in the following states:

  • Minnesota – effective January 1, 2019 (However, Minnesota has enacted a small business exemption for out of state unregistered sellers whose taxable retail sales into Minnesota are less than $10,000 in the previous 12-month period. These sellers are not subject to the Minnesota marketplace tax laws, and eBay will not be collecting sales tax on these transactions.)
  • Washington – effective January 1, 2019
  • Iowa – effective February 1, 2019
  • Connecticut – effective April 1, 2019
  • District of Columbia – effective May 1, 2019
  • New Jersey – effective May 1, 2019
  • Nebraska – effective May 1, 2019
  • Idaho – effective June 1, 2019
  • New York – effective June 1, 2019
  • Alabama – effective July 1, 2019
  • Arkansas – effective July 1, 2019
  • Indiana – effective July 1, 2019
  • Kentucky – effective July 1, 2019
  • New Mexico – effective July 1, 2019
  • Oklahoma – effective July 1, 2019
  • Pennsylvania – effective July 1, 2019
  • Rhode Island – effective July 1, 2019
  • South Dakota – effective July 1, 2019
  • Virginia – effective July 1, 2019
  • West Virginia – effective July 1, 2019
  • Wyoming – effective July 1, 2019
  • Vermont – effective July 1, 2019
  • Ohio – effective September 1, 2019 (not confirmed by eBay)
  • California – effective October 1, 2019
  • Maine – effective October 1, 2019 (not confirmed by eBay)
  • Massachusetts – effective October 1, 2019 (not confirmed by eBay)
  • Nevada – effective October 1, 2019 (not confirmed by eBay)
  • North Dakota – effective October 1, 2019
  • South Carolina – effective October 1, 2019
  • Texas – effective October 1, 2019
  • Utah – effective October 1, 2019
  • Illinois – effective January 1, 2020 (not confirmed by eBay)
  • Wisconsin – effective January 1, 2020 (not confirmed by eBay)

The states in red recently passed marketplace facilitator laws. However, eBay has not included them in its official list of states and therefore are not yet confirmed by eBay.


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e Seller Cafe
by Richard Meldner
August 15, 2019