U.S. Overview

US Marketplace Facilitator Laws

Overview

As of June 2020, there are 41 jurisdictions states that have passed marketplace facilitator laws requiring the marketplace facilitator to collect and remit sales tax on behalf of third-party sellers; with 1 additional state anticipated in July 2020. A marketplace facilitator is generally defined as a business that contracts with third parties to sell goods and services on its platform and facilitates retail sales by listing the products, taking the payments, collecting receipts, etc.

How Facebook will handle this change

Facebook has reviewed the current laws and regulations applicable to marketplace facilitators and determined that we are a marketplace facilitator in certain jurisdictions, herein referred to as “MPF Jurisdictions.” Please see below for a current listing of all MPF Jurisdictions.
- This list is subject to change and will be updated to address new legislation. Please check back regularly for updates.
Facebook will begin collecting and remitting sales and seller’s use taxes (whichever is appropriate) in all US MPF Jurisdictions, effective July 20, 2020, to the extent your sales are taxable. Facebook will perform the following:
- Facebook will treat game sales through our platform as the sale of a digital good with indefinite right of use.
- Facebook will compute sales tax on US game sales based on customer provided address information.
- Customers will be charged sales tax, if applicable, and the tax amount will be separately itemized on the purchase invoice as required by US law.
- Facebook will handle tax reporting obligations to the tax authorities on taxes collected in the MPF Jurisdictions.
- For your records, Facebook will provide the collected tax amount in both the Graph API payment object and the daily transaction/payout reports available to you.
  - Graph API will list the tax collected as “tax_remitted_USMPF”
  - The daily transaction/payout reports will indicate any tax collected from your customers under the existing “tax_amount” tag.
- You will continue to be responsible for collecting and remitting tax on sales made to US customers not located in MPF Jurisdictions, to the extent your sales are taxable.

What this means for you

As Facebook is required to collect and remit taxes on your behalf in MPF Jurisdictions, you will no longer be responsible for collecting and remitting taxes in these jurisdictions on game sales made on the Facebook platform. No action to enable this function is required from you.
- To the extent that you have included any taxes in the sales amount to US customers located in MPF Jurisdictions, please adjust accordingly.
You will continue to be responsible for collecting and remitting tax on sales made to US customers not located in MPF Jurisdictions, to the extent they are taxable.
Your payout on sales to US customers will not change as a result of this implementation. You will continue to receive the same share of the purchase price to the customer that you currently receive (before any tax is charged by us).
Please check this web page for updates to MPF Jurisdictions regularly as tax laws change and Facebook will update our tax responsibilities accordingly.

Current MPF Jurisdictions

Facebook is a marketplace facilitator in the following states listed below. We will collect and remit tax from your customers to the extent that your sales are taxable, effective July 20, 2020.

State	State Resource
Alabama [1]	https://revenue.alabama.gov/2018/07/03/ador-announces-sales-and-use-tax-guidance-for-online-sellers/
Alaska [2]	https://arsstc.org/
Arizona	https://azdor.gov/news-events-notices/news/new-tpt-law-remote-sellers-and-marketplace-facilitators-starting-october-1
Arkansas	https://www.dfa.arkansas.gov/excise-tax/sales-and-use-tax/arkansas-remote-seller-frequently-asked-questions-faqs
California	https://www.cdtfa.ca.gov/industry/MPFAct.htm
Colorado [3]	http://leg.colorado.gov/bills/hb19-1240
Connecticut	https://portal.ct.gov/-/media/DRS/Publications/OCG/OCG-8.pdf?la=en
District of Columbia	https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/page_content/attachments/Wayfair%20Response%20Notice%20%281%202%202019%29_0.pdf
Georgia	https://dor.georgia.gov/marketplace-facilitators
Hawaii	https://www.capitol.hawaii.gov/session2019/bills/SB396_SD1_.HTM
Idaho	https://tax.idaho.gov/i-1171.cfm?seg=bus
Illinois	https://www2.illinois.gov/rev/research/legalinformation/EmergencyRules/MarketplaceFacilitator/Pages/default.aspx
City of Chicago	https://www.chicago.gov/content/dam/city/depts/rev/supp_info/TaxRulingsandRegulations/AmusementTaxRuling_5_06_09_2015.pdf
Indiana	https://www.in.gov/dor/6744.htm
Iowa	https://tax.iowa.gov/south-dakota-v-wayfair
Kentucky	https://taxanswers.ky.gov/Sales-and-Excise-Taxes/Pages/Remote-Retailers-Marketplace-Providers-FAQs.aspx
Louisiana	http://www.legis.la.gov/legis/BillInfo.aspx?s=20RS&b=SB138&sbi=y
Maine	https://www.maine.gov/revenue/salesuse/salestax/MarketplaceFAQ102019.html
Maryland	https://www.marylandtaxes.gov/forms/Tax_Publications/Tax_Alerts/SUT_Tax_Alert_Sept2019.pdf
Massachusetts	https://www.mass.gov/regulations/830-CMR-64h19-remote-retailers-and-marketplace-facilitators
Michigan	https://www.michigan.gov/documents/treasury/Marketplace_Facilitator__Seller_FAQs_674744_7.pdf
mississippi	http://billstatus.ls.state.ms.us/documents/2020/pdf/HB/0300-0399/HB0379SG.pdf
Minnesota	https://www.revenue.state.mn.us/sales-tax-update-marketplace-providers
Nebraska	https://revenue.nebraska.gov/businesses/sales-and-use-tax/information-remote-sellers-and-marketplace-facilitators
Nevada	https://tax.nv.gov/Home/Features/Marketplace_Facilitators_and_Marketplace_Sellers/
New Jersey	https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/tb83.pdf
New Mexico	http://www.tax.newmexico.gov/Businesses/gross-receipts.aspx
New York	https://www.tax.ny.gov/pdf/memos/sales/m19-2s.pdf
North Carolina	https://www.ncdor.gov/taxes-forms/sales-and-use-tax/marketplace-facilitators-and-marketplace-sellers
North Dakota	https://www.nd.gov/tax/user/businesses/formspublications/sales-use-tax/streamlined-sales--use/marketplace-facilitator
Ohio	https://www.tax.ohio.gov/sales_and_use/MarketplaceFacilitators.aspx
Oklahoma	https://www.ok.gov/tax/faqs.html#c571
Pennsylvania	https://www.revenue.pa.gov/GeneralTaxInformation/Tax%20Types%20and%20Information/SUT/OnlineRetailers/Pages/default.aspx
Rhode Island	http://www.tax.ri.gov/Advisory/ADV_2019_11.pdf
South Carolina	https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/IL19-14.pdf
South Dakota	https://dor.sd.gov/media/e0ajtwlg/marketplace-provider-bulletin.pdf
Texas	https://comptroller.texas.gov/taxes/sales/remote-sellers.php
Utah	https://tax.utah.gov/sales/marketplace-facilitators
Vermont	https://tax.vermont.gov/business-and-corp/sales-and-use-tax/marketplace
Virginia	https://www.tax.virginia.gov/remote-sellers-marketplace-facilitators-economic-nexus
Washington	https://dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-facilitators
West Virginia	https://public.wvtax.gov/Business/SalesAndUseTax/ECommerce/MarketplaceFacilitators/Pages/MarketplaceFacilitators.aspx
Wisconsin	https://www.revenue.wi.gov/Pages/Businesses/marketplace-providers-sellers.aspx
Wyoming	https://www.wyoleg.gov/Legislation/2019/HB0069

[1] For taxable sales delivered to Alabama, Facebook collects the simplified sellers use tax at a flat 8% tax rate. Facebook's Alabama program account number is SSU-R010193989.

[2] Facebook is only a marketplace facilitator for certain enumerated local jurisdictions. Please see Alaska’s MPF website for a list of applicable jurisdictions. As of June 19, 2020, those are:

City of Adak
City of Bethel (Effective 1/1/2021)
City of Cordova
City of Craig
City of Dillingham
City of Gustavus
Haines Borough
City of Homer
City of Houston (Effective 9/13/2020)
City and Borough of Juneau
City of Kenai
Kenai Peninsula Borough
City of Ketchikan (Effective 9/21/2020)
Ketchikan Gateway Borough (effective August 20, 2020)
City of Kodiak
City of Mountain Village (Effective 1/1/2021)
City of Nome
City of Palmer
Petersburg Borough
City of Saint Paul (Effective 1/1/2021)
City of Saxman (Effective 1/1/2021)
City of Seldovia
City of Seward
City and Borough of Sitka
City of Soldotna
City of Tenakee Springs
City of Thorne Bay (Effective 1/1/2021)
City of Togiak (Effective 1/1/2021)
City of Toksook Bay (Effective 1/1/2021)
City of Unalaska
City of Wasilla
City and Borough of Wrangell
City and Borough of Yakutat

[3] Facebook is a marketplace facilitator for the state and state administered taxes in Colorado. Facebook will begin collecting sales tax for the following home-rule municipalities as applicable:

Arvada (effective 11/1/2020)
Aurora (effective 2/1/2021)
Avon (effective 11/1/2020)
Black Hawk (effective 10/1/2020)
Boulder (effective 2/1/2021)
Breckenridge (effective 2/11/2021)
Carbondale (effective 10/1/2020)
Colorado Springs (effective 11/1/2020)
Denver (effective 2/1/2021)
Englewood (effective 2/1/2021)
Evans (effective 2/1/2021)
Federal Heights (effective 11/1/2020)
Fort Collins (effective 11/1/2020)
Glenwood Springs (effective 10/1/2020)
Golden (effective 10/1/2020)
Gypsum (effective 2/1/2021)
Greenwood Village (effective 2/1/2021)
Gunnison (effective 10/1/2020)
Lafayette (effective 2/1/2021)
Lakewood (effective 2/1/2021)
Lamar (effective 2/1/2021)
Littleton (effective 2/1/2021)
Lone Tree (effective 11/1/2020)
Longmont (effective 10/1/2020)
Montrose (effective 2/1/2021)
Mountain Village (effective 11/1/2020)
Mt. Crested Butte (effective 10/1/2020)
Pueblo (effective 10/1/2020)
Rifle (effective 2/1/2021)
Sheridan (effective 11/1/2020)
Silverthorne (effective 10/1/2020)
Snowmass Village (effective 10/1/2020)
Steamboat (effective 2/1/2021)
Vail (effective 10/1/2020)
Winter Park (effective 10/1/2020)

You will continue to be responsible for any tax due to the remaining non-MPF municipalities.