Marketplace Facilitator Laws

Marketplace Facilitator Laws require online platforms, like Amazon or eBay, to collect and remit sales tax on behalf of sellers using their sites. This means when a seller makes a sale, the platform automatically adds the appropriate tax to the purchase and handles the payment of that tax to state governments. These laws aim to simplify sales tax compliance for small businesses while ensuring states receive the revenue owed from online sales, leveling the playing field between online and brick-and-mortar retailers.