Following a Supreme Court ruling, many states have introduced sales tax legislation affecting how businesses, including auction houses, sell online. As a result, internet sales tax will be collected and remitted for certain purchases made through LiveAuctioneers.
About Internet Sales Tax Laws
Over the past couple of years, states have been introducing new tax laws affecting businesses that sell online, including auction houses. Previously, most sellers were required to collect sales tax only in states where they had a physical presence. This is called physical nexus. However, as more purchases continue to be made online, states have passed legislation to expand nexus beyond a physical presence in their state to include internet sales.
On June 21, 2018, the United States Supreme Court ruled in a 5-4 decision in South Dakota v. Wayfair, Inc., et al, that states can require out-of-state sellers to collect and remit sales tax on sales that reach a certain revenue and/or transaction threshold. Called economic nexus, this requirement has been incorporated into how most states determine taxable sales. While many states define economic nexus as $100,000 or 200 or more separate transactions, others have thresholds as high as $500,000, and these thresholds are changing regularly. Referred to as internet sales tax laws, these rules apply to anyone who sells online, regardless of the platform or website solution they’re using.
When internet sales tax is collected and remitted by LiveAuctioneers
To help auction houses comply with internet sales tax laws, we have introduced enhanced tax calculation services for purchases made through LiveAuctioneers. Auction houses will not be charged any additional processing fees for this service.
Sales tax will be calculated, collected, and remitted on all purchases paid for through LiveAuctioneers, by buyers in the following states:
State / Territory | Effective Date |
Additional Information
|
Alabama | October 1, 2020 |
Alabama Department of Revenue
SSUT Number: SSU-R010835390 Alabama Marketplace Facilitator Certificate |
Alaska | N/A | Alaska does not impose a state level sales tax. |
Arizona | December 1, 2020 |
Arizona Department of Revenue |
Arkansas | October 1, 2020 |
Arkansas Department of Finance and Administration
SUT Account Number: 54521226-SLS Arkansas Marketplace Facilitator Certificate |
California | December 1, 2020 |
California Department of Tax and Fee Administration
SUT Account Number: 228-518464 California Marketplace Facilitator Certificate |
Colorado | December 1, 2020 |
Colorado Department of Revenue |
Connecticut | December 1, 2020 |
Connecticut Department of Revenue Services
SUT Account Number: 82152620000 Connecticut Marketplace Facilitator Certificate |
Delaware | N/A | Delaware does not impose a state level sales tax. |
District of Columbia | October 1, 2020 |
District of Columbia Office of Tax and Revenue
SUT Account Number: MKT-001206095 District of Columbia Marketplace Facilitator Certificate |
Florida | July 1, 2021 |
Florida Department of Revenue |
Georgia | November 1, 2020 |
Georgia Department of Revenue
SUT Account Number: 175862531 Georgia Marketplace Facilitator Certificate |
Hawaii | October 1, 2020 |
Hawaii Department of Taxation
General Excise Tax Account Number: GE-208-324-8640-01 Hawaii Marketplace Facilitator Certificate |
Idaho | October 1, 2020 | |
Illinois | December 1, 2020 |
Illinois Department of Revenue
SUT Account Number: 4381-4761 Illinois Marketplace Facilitator Certificate |
Indiana | November 1, 2020 |
Indiana Department of Revenue
SUT Account Number: 141729058 Indiana Marketplace Facilitator Certificate |
Iowa | October 1, 2020 | |
Kansas | July 1, 2021 |
Kansas Department of Revenue |
Kentucky | October 1, 2020 |
Kentucky Department of Revenue
SUT Account Number: S00186513 Kentucky Marketplace Facilitator Certificate |
Louisiana | December 1, 2020 |
Louisiana Department of Revenue
SUT Account Number: 2224019-001 Louisiana Marketplace Facilitator Certificate |
Maine | October 1, 2020 | |
Maryland | December 1, 2020 | |
Massachusetts | December 1, 2020 |
Massachusetts Department of Revenue
SUT Account Number: 19755062-003 Massachusetts Marketplace Facilitator Certificate |
Michigan | November 1, 2020 |
Michigan Department of Treasury
SUT Account Number: 14-1856989 Michigan Marketplace Facilitator Certificate |
Minnesota | October 1, 2020 |
Minnesota Department of Revenue
SUT Account Number: 7007466 Minnesota Marketplace Facilitator Certificate |
Mississippi | October 1, 2020 |
Mississippi Department of Revenue
SUT Account Number: 1420-5525 Mississippi Marketplace Facilitator Certificate |
Missouri | January 1, 2023 |
Missouri Department of Revenue SUT Account Number: 27963624 |
Montana | N/A | Montana does not impose a state level sales tax. |
Nebraska | October 1, 2020 |
Nebraska Department of Revenue
SUT Account Number: 12601519 Nebraska Marketplace Facilitator Certificate |
Nevada | October 1, 2020 |
Nevada Department of Taxation
Taxpayer Identification Number: 1042201862 Nevada Marketplace Facilitator Certificate |
New Hampshire | N/A | New Hampshire does not impose a state level sales tax. |
New Jersey | February 1, 2021 |
New Jersey Department of Taxation |
New Mexico | October 1, 2020 |
New Mexico Taxation and Revenue Department
NM CRS # 03-533609-00-9 New Mexico Marketplace Facilitator Certificate |
New York | December 16, 2020 |
New York Department of Taxation and Finance |
North Carolina | November 1, 2020 |
North Carolina Department of Revenue
SUT Account Number: 601310212 North Carolina Marketplace Facilitator Certificate |
North Dakota | October 1, 2020 |
North Dakota Office of State Tax Commissioner
SUT Account Number: S00186513 North Dakota Marketplace Facilitator Certificate |
Ohio | November 1, 2020 | |
Oklahoma | October 1, 2020 |
Oklahoma Tax Commission
Taxpayer Identification Number: SVU-14652009-06 Oklahoma Marketplace Facilitator Certificate |
Oregon | N/A | Oregon does not impose a state level sales tax. |
Pennsylvania | December 9, 2020 |
Pennsylvania Department of Revenue |
Rhode Island | October 1, 2020 |
Rhode Island Division of Taxation
Taxpayer Identification Number: 2-1971-4109 Rhode Island Marketplace Facilitator Certificate |
South Carolina | December 1, 2020 |
South Carolina Department of Revenue SUT Account Number: 101538855 South Carolina Marketplace Facilitator Certificate |
South Dakota | March 1, 2021 |
South Dakota Department of Revenue |
Tennessee | November 1, 2020 |
Tennessee Department of Revenue
SUT Account Number: 1001743440 Tennessee Marketplace Facilitator Certificate |
Texas | January 20, 2021 |
Texas Comptroller of Public Accounts
SUT Account Number: 32056015475 |
Utah | October 1, 2020 |
Utah State Tax Commission
SUT Account Number: 14031172-004-STC Utah Marketplace Facilitator Certificate |
Vermont | October 1, 2020 |
Vermont Department of Taxes
SUT Account Number: 11083571 Vermont Marketplace Facilitator Certificate |
Virginia | December 1, 2020 |
Virginia Department of Taxation
SUT Account Number: 12-141856989F-001 Virginia Marketplace Facilitator Certificate |
Washington | October 1, 2020 | |
West Virginia | October 1, 2020 |
West Virginia State Tax Department
SUT Account Number: 2396-5390 West Virginia Marketplace Facilitator Certificate |
Wisconsin | October 1, 2020 |
Wisconsin Department of Revenue
SUT Account Number 456-1030475800-02 Wisconsin Marketplace Facilitator Certificate |
Wyoming | March 1, 2021 |
Wyoming Department of Revenue SUT Account Number: 24043723 |
How is sales tax calculated?
Sales tax rates vary and depend on each state and local regulation. Sales tax will be calculated, collected, and remitted on all purchases made on LiveAuctioneers ( if payment is collected through LivePayment) by buyers in the above states. No action is required on your part to collect sales tax on purchases from the above states that are paid for through LiveAuctioneers.
Sales tax is calculated using our advanced sales tax calculation engine. Based on various factors, the calculator applies the correct state and local sales tax rate on the hammer price and shipping and handling fees. Processing fees and buyer’s premium may also be taxable depending on the state.
Tax-exempt item categories, where applicable, and a bidder’s tax-exemption status are also factored into sales tax calculations. Through our tax exemption certificate management system, bidders are able to easily upload their resale certificates to their LiveAuctioneers accounts.
How are bidders informed of potential tax responsibilities?
LiveAuctioneers will display information on invoices, during the checkout process, and in other relevant places to indicate to bidders when taxes are applicable. Purchases made in states that do not impose sales tax will not be subject to tax.
To ensure a positive bidder checkout experience, below is example phrasing to include in your auction terms and conditions:
Internet purchases from {{Auction House Name}} may be subject to sales tax. Please see the following for more details: https://help.liveauctioneers.com/article/502-why-am-i-being-charged-sales-tax. If you are tax exempt, you can submit your tax exempt certificate to prevent the collection of tax; for more details, see here: https://help.liveauctioneers.com/article/503-tax-exemptions.
How much sales tax was remitted by LiveAuctioneers on my behalf?
To determine how much sales tax was remitted by LiveAuctioneers, you can download a spreadsheet of your paid invoices. The amount indicated in the Sales Tax column is the amount remitted.
For which sales am I responsible for calculating, collecting, and remitting sales tax?
Sales tax will only be calculated, collected, or remitted for payments collected through LiveAuctioneers. In order to remain compliant with United States state and local tax regulations, you are responsible for calculating, collecting, and remitting the appropriate sales tax on all other sales.
What does this mean when I file sales tax returns in qualifying states?
If you are required to file a sales tax return in qualifying states for your auction house, you do not need to report sales revenue collected through LiveAuctioneers. All that is required of you for those states is to report that the sales were made through LiveAuctioneers.
You may be responsible for reporting and filing sales tax returns on sales generated outside of LiveAuctioneers.