Tax Law

Recent Posts

Marketplace Monday: CDTFA Releases Initial Discussion Paper in Anticipation of Interested Parties Meeting on Marketplace Facilitator Act
Posted on 7 Oct 2019 by Eversheds Sutherland LLP

On October 4, 2019, the California Department of Tax and Fee Administration (CDTFA) released its Initial Discussion Paper in anticipation of an Interested Parties Meeting (IPM) set for October 15, 2019 in Sacramento. The subject of both the IPM and the... Read More

Marketplace Monday – California Legislation Pending on Marketplace Sellers
Posted on 30 Sep 2019 by Eversheds Sutherland LLP

California Assembly Bill (AB) 1790 passed the Legislature on September 26, 2019 and was sent to the Governor.   The Governor has until October 13 th to act on the bill.  The Legislative Counsel’s Digest for AB 1790 states the bill would require a marketplace... Read More

Marketplace Monday – Sourcing of Marketplace Sales
Posted on 23 Sep 2019 by Eversheds Sutherland LLP

The shift in tax collection responsibility to marketplace facilitators raises questions on how to accurately source sales made through the marketplaces. Depending on the state sourcing rules, a marketplace facilitator may need to know whether sourcing... Read More

Marketplace Monday – California Issues Marketplace Guidance
Posted on 16 Sep 2019 by Eversheds Sutherland LLP

The California Department of Tax and Fee Administration (“CDTFA”) issued two new special notices addressing marketplace facilitators and its new registration and filing requirements effective October 1, 2019. In Special Notice L-694, the CTDFA reiterated... Read More

Marketplace Monday – Marketplace Sales Tax Liability
Posted on 9 Sep 2019 by Eversheds Sutherland LLP

The shift in tax collection responsibility to marketplace facilitators raises issues regarding which party will bear the burden of any additional sales tax liability resulting from a state audit of marketplace transactions. These issues include the extent... Read More

Marketplace Monday: What to Watch for This Fall
Posted on 2 Sep 2019 by Eversheds Sutherland LLP

In this post-Labor Day update, we wanted to highlight the following marketplace discussions to watch for this fall: Northeastern States Tax Officials Association Annual Meeting September 9th through 12th in Providence, Rhode Island. There will be... Read More

Marketplace Monday – Accepting Exemption Certificates
Posted on 26 Aug 2019 by Eversheds Sutherland LLP

The shift in tax collection responsibility to marketplace facilitators raises questions on how to address exempt sales and related documentation requirements. States generally require sellers responsible for collecting sales and use tax to maintain that... Read More

Marketplace Monday: To Be or Not To Be A Seller
Posted on 19 Aug 2019 by Eversheds Sutherland LLP

Marketplace collection laws are a departure from traditional state sales tax rules that contemplate a single buyer and seller. The addition of the marketplace facilitator to a transaction, as the party responsible for collecting and remitting sales and... Read More

Marketplace Monday: The MTC’s “Top 12” Marketplace Collection Tax Issues
Posted on 12 Aug 2019 by Eversheds Sutherland LLP

The Multistate Tax Commission (MTC) held its annual meeting in Boise, Idaho August 5, 2019 through August 8, 2019. As part of the meeting, the MTC’s Uniformity Committee (“Committee”), which established the Marketplace Facilitator Work Group (“Work Group... Read More

Marketplace Monday: Economic Nexus
Posted on 5 Aug 2019 by Eversheds Sutherland LLP

Qualification as a “ marketplace facilitator ” does not by itself give rise to a tax collection obligation. A marketplace facilitator must also have sufficient nexus with a state before it may be obligated to collect the state’s sales and use tax on marketplace... Read More

Marketplace Monday: You Might Be A Marketplace If…
Posted on 29 Jul 2019 by Eversheds Sutherland LLP

Marketplace collection laws have shifted our common understanding of those persons that are responsible for collecting sales and use taxes. Historically, sellers have been responsible for collecting sales or use tax on sales they make to purchasers. Marketplace... Read More

How States Protect Marketplace Facilitators from Tax Overcollection Lawsuits
Posted on 15 Jul 2019 by Eversheds Sutherland LLP

States have enacted new marketplace facilitator laws designed to impose sales tax obligations on marketplace facilitators related to sales made by third-party sellers. These new sales tax collection obligations on marketplace facilitators create the potential... Read More