While all sales tax states have marketplace facilitator laws, the thresholds that trigger the collection requirement vary:​

$100,000 threshold states: Most states including Arkansas, Colorado, Georgia, Idaho, Indiana, Iowa, Kansas, Nevada, New Mexico, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Utah, Vermont, Virginia, and Wisconsin​

$250,000 threshold states: Alabama (for Simplified Sellers Use Tax), Connecticut, and Mississippi​

$500,000 threshold states: California (for remote sellers) and Tennessee​

No threshold/Universal collection: California, New Jersey, Texas, and West Virginia require marketplace facilitators to collect sales tax on all sales regardless of volume​

Key Effective Dates

The rollout of these laws occurred over several years:​

  • 2018: Minnesota (October 1), New Jersey (November 1), Connecticut (December 1)

  • 2019: Iowa, Pennsylvania, Oklahoma, and many others throughout the year

  • 2020: Louisiana, Mississippi, Tennessee

  • 2021: Florida (July 1), Kansas (July 1)

  • 2023: Missouri (January 1) – the final state to adopt such a law​

The comprehensive adoption of marketplace facilitator laws means that platforms like Amazon, eBay, Etsy, and Walmart now automatically collect and remit sales tax on behalf of third-party sellers in every state where sales tax applies.​