Sales Tax Agencies By State
Here is a list of state government offices where you can find out your states laws for online selling, seller permits, resale licenses and collecting online sales taxes.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia (Washington DC)
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- New Hampshire
- New Jersey
- New York
- New Mexico
- Nevada
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Randy Dreammaker created this list in November 2018 when things worked a whole lot differently. Since then, marketplaces have become the seller (Marketplace Facilitator) under the laws of many states and as of 2022 the IRS calls us Independent Contractors.
All of the tax laws for selling online have been tossed out the window, with some states like California dropping the Reseller Permit Requirement for sellers who only sell on Marketplace Facilitator websites like Ebay, Mercari, Offer-Up, Facebook Marketplace, Etsy, etc.
These Marketplace Facilitators collect and remit the sales taxes for all participating states. That means, unlike in 2018 when a customer lived in one state and purchased something from you in another state, you as the seller didn't have to pay sales taxes. Instead the customer of many states was supposed to voluntarily pay a "Use Tax" to their own state.
Not so anymore, at least not if you sell on a Marketplace Facilitator website. Now the Marketplace Facilitator collects both the sales tax when someone purchases within their own state, but also collects that previously "voluntary Use Tax" too.
Next a global pandemic occurred and woke up one day realizing that we got lied to again, this time by the Resident Evil movies and video games. We were promised Zombies, yet no one turned into Zombies during the pandemic except Antifa members in Seattle and a couple of politicians. No zombie dogs, predator super strong monsters and no sexy red-head running around fighting them. What a rip off.
The American Rescue Plan, another lie, it didn't rescue us, instead those who pushed it into law hid the 1099K death punch for small sellers placing even more restrictions on us. That American Rescue Plan that took effect at the beginning of 2022 changed the reporting requirements for all Payment Processors and online marketplaces. Up until then, we as sellers were allowed to sell up to a minimum of 250 products in a year and $20,000 in sales before marketplaces were required to send the seller a 1099 and report it to the IRS. Under the Biden Administration (Let's Go Brandon), it was changed to no minimum amount of products sold and dropped to $600 in sales.
This 1099K law means any student, household, anyone selling anything online gets reported to the IRS as a sole proprietor business on a 1099K or 1099Misc issued by the payment process and marketplace if your sales are over $601.
It creates a situation were a Schedule C profit-non profit must be filed with your taxes. You won't be able to use those wonderful 1040EZ, you'll have to file your taxes as an Independent contractor or sole proprietor, have records documenting all of your sales, etc.
If you are still absolutely clueless about the changes mentioned above, here is a video Randy Dreammaker made for SellerThink on YouTube that attempts to explain the 1099 IRS Issue and how it impacts you after 2022 and into the future.
This page is sponsored by Mercari Shopping Directory
[TOP]