No sales tax in Delaware is there
The states I seen that were left are Georgia, Florida, Kansas, and Tennessee. All the rest are either collected by amazon or don’t have sales tax.
I have another question that I’m really struggling to get answered. There are 2 ways to report sales tax
- as a nexus where u have a physical presence in the state through amazon warehouses (is this what market place facilitators AKA Amazon collections are reporting to the states)?
- sales tax where you have no presence in any state except your home state (or is this what amazon is reporting)?
What’s the difference between a nexus (I know what this is), regular sales tax reporting (I also know what this is but different in every state), or marketplace tax facilitator?
Marketplace Facilitator states are states where the marketplace facilitator (Ebay/Amazon/etc) is required to collect and remit the sales tax that could have otherwise been collected on behalf of the marketplace seller and remitted by the marketplace seller. Or to put it another way. Except for the states without a sales tax and the handfulish of states without a marketplace facilitator law Amazon/Ebay/Etc are collecting sales tax on 100% of the taxable purchases on their marketplaces.
That’s a pretty clear description thank you. So in other words all the states that amazon has to collect sales tax on due to the marketplace facilitator law the seller FBA or not doesn’t have to do anything in those states?
In the 4 or 5 states that amazon is not yet collecting for is there a law that says sellers using FBA need to submit?
@Hamilton_Electronics if you are based in any of the 7 states or have economic nexus in any of those states, you need to be worried. There are also still some economic nexsus requirements.
Georgia requires 250k sales in that state to hit nexus 12 months
Florida requires 100k sales in a 12 month
Kansas any sales it’s required
North Carolina getting added in 2/2020
Tennessee is 500k sales in 12 month period
What’s the other states that have sales tax and isn’t being picked up by amazon?
My home state is KY
Note that this and other examples are economic nexus. You still are required to file if you do not meet the economic threshold, but have a physical nexus in the state; that could be your office, your warehouse, or any other part of your business.
An amazon warehouse as FBA classify a as a nexus but you don’t file unless you meet the threshold
Missouri which is my sales tax state. They tried going for it but have to simplify the 2,200 tax jurisdictions… Autonomoose posted a full list a few posts from the top.
Louisiana $100k or 200 sales, Mississippi $250k
Though even Alavara says Kansas “any sales” may not do as it doesn’t follow the wayfair decision. And the tax collecting websites pretty much always say you need them. “Where Kansas is not in line with South Dakota’s economic nexus law or the Wayfair decision: It doesn’t expressly provide an exception for small sellers.” Kansas Attorney General holds that Notice 19-04 is “inconsistent with Wayfair” and therefore invalid.
Walmart.com just won a sales tax case before the Louisiana Supreme Court that they were not responsible for collecting sales taxes from third party sellers. Have not read the full opinion.
The US Supreme Court in the decision opening the door to all this set a de minimus amount of $100,000 so any state wanting to collect has to be at or over that amount. Otherwise the state would not have any jurisdiction outside its borders and unless your business had a physical presence there, the state can do nothing.
I feel like we are still missing the boat here.
Amazon is collecting sales tax 100% for everything we sell via FBA in all states that require it (either via nexus of having inventory held in the state or by just collecting sales tax for every state, no physical presence just selling to people there) except in Georgia, Florida, Kansas, North Carolina (starts 2/2020) and Tennessee.
PR I’m not including but maybe it’s required.
My understanding at this point is Kansas, after 2/2020 is the only state that amazon is not collecting for that could potentially hit small sellers. All other states have a threshold and if you don’t hold a physical presence (my understanding is inventory held by amazon does not fall under that category) as in having a retail store you do not have to file taxes with those states unless you hit the threshold.
I feel like a lot of people are making this more complicated than it is. Worry about Kansas. Yes their law will probably get overturned to include a threshold or amazon will start filing for that state as well but as of now Kansas is the only issue I see.
Taxes, what are those?
Sales tax and use tax
As of tomorrow, 7 states have a sales-type tax but not a requirement for marketplace facilitators to collect and remit. 1. Georgia currently has a $100k or 200 transactions threshold (modified effective Jan 1), and marketplace facilitator requirements go into effect April 1, 2020. 2. Florida has no economic nexus law but a proposed one would take effect July 1, with proposed marketplace facilitator in effect October 1. 3. Kansas is all jacked up with a clearly unconstitutional “any sale” requirement for sellers and asking marketplaces to contact them. 4. Missouri: Nothing. 5. Mississippi: $250k sales. 6. Lousiana: $100k or 200 transactions; established a commission to propose a regulation/law including marketplace facilitator by July 1, 2020 (and there are legal challenges). 7. Tennessee: $500k sales.
That being said, all of those states now have at least one FBA facility (MO and MS got one each in 2019). Any of those states might go after an FBA third-party Amazon seller under the physical nexus theory. That said, once that theory is tested in federal court, it will most likely be compared to Wayfair, which will mean a substantiality test, which no state current has in place. Each listed state asserts the “one item in our state in a warehouse is sufficient” standard. Any state can assert that, will probably win at all administrative and state levels, then be tested on appeal to a Federal district court (then an appeal to the corresponding Circuit Court, then US Supreme Court). It takes a long time to get there. DOR’s win, until they lose.
Where have you read that about pending states like Georgia, Florida?
From their previous posts I can only assume they enjoy reading state law posts or something like that. From the details they have posted, I surely hope they are either doing the work from a beach or floating on some water.
@Water_Enthusiast does the marketplace facilitator law and requirement that amazon is collecting actually cover the nexus in those states For the sellers? My assumption is yes but I would like to make sure.
Also if you are below the thresholds in all states that aren’t being collected (7 mentioned above other than Kansas which sucks) do you have to report anything?