Mississippi- Could Soon Tax Third-Party Internet Sales

Mississippi is one of four states without a sales tax on third-party sales on the internet, but that could change if a bill that is headed to the Senate floor becomes law.

House Bill 379, known as the Mississippi Marketplace Facilitator Act, is sponsored by state Rep. Trey Lamar, R-Senatobia, and would require third-party sellers with sales of more than $250,000 —  such as Amazon, Walmart and Etsy — to collect the state’s 7 percent use tax on purchases.

HB 379 would allow the state to collect more revenue, as Amazon only collects use tax on items directly sold by it and not by marketplace affiliates, which account for almost half of its sales. If this bill becomes law, Amazon would collect and remit use tax on all purchases, even those by independent sellers.

The bill would also remove the third-party sellers from liability if the seller has provided them incorrect information.

For more information: The Northside Sun

The northside sun
by steve wilson
june 06, 2020