Tennessee Tax Law Defines What Is, and Isn’t, a Marketplace

April 9, 2020, 6:58 PM

Tennessee’s new law imposing sales-tax collection duties on marketplace facilitators is noteworthy for its explanations of what a marketplace is—and isn’t.

S.B. 2182, signed by Gov. Bill Lee (R) April 1, defines a marketplace facilitator as any business that “agrees with a marketplace seller to facilitate the sale of the marketplace seller’s tangible personal property or things or services” taxable under the law. The law confines the obligation to marketplaces with more than $500,000 of annual sales into Tennessee and creates an effective date of Oct. 1.

More than 30 states have passed marketplace facilitator laws in the ...

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