House Bill 1352 – Marketplace Facilitator
Authored by Rep. Greg Porter (D-Indianapolis)
This bill provides that a marketplace facilitator is required to collect and remit state sales and use taxes as a retail merchant when it facilitates a retail sale for a marketplace seller on the marketplace facilitator’s marketplace. Provides that a marketplace seller is not required to collect and remit the state sales tax on the retail sale under certain circumstances. Provides that the requirement shall not be applied retroactively.
Chamber Position: Support
The Latest: The bill was amended to mirror the Senate version on the same subject (SB 322), then held by the House Ways and Means Committee for a later vote.
Chamber Action/Commentary: The Chamber testified in support of this bill based on several viewpoints. The bill represents a good reaction to the U. S. Supreme Court decision in the Wayfair case, which authorized states to require online sellers to collect the state’s sales tax. These online transactions are taxable now, and everybody recognizes the wisdom in maximizing compliance by collecting the tax at the point the transactions take place, via the facilitators’ platform.
Obligating the ”’facilitators” of the sale to collect the tax, rather than thousands of small businesses across the country, is better for everybody involved. The facilitators take the burden off both the seller (their customers) and the Department of Revenue, which would have the task of trying to enforce collection from those sellers located across the country. It is good tax policy as everybody wins.
Resource: Bill Waltz at (317) 264-6887 or email: [email protected]