Outside Section 36

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Sales Tax Treatment of Marketplace Vendors 2

SECTION 36.   Said chapter 64H, as so appearing, is hereby amended by adding the following section:-
Section 34. (a) A remote retailer shall be subject to the registration, collection and remittance requirements of chapters 62C, 64H and 64I as a vendor if its sales within Massachusetts in the prior taxable year or the current taxable year exceed a threshold set by the commissioner in regulation, hereinafter called the Massachusetts sales threshold; provided, however, that the Massachusetts sales threshold shall not be less than $100,000.
(b) In the case of a remote marketplace facilitator, the determination of Massachusetts sales shall include both the facilitator's direct sales and those sales facilitated on behalf of marketplace sellers. A remote marketplace facilitator that exceeds the Massachusetts sales threshold set by the commissioner must report all taxable sales made through such marketplace and collect and remit tax on all such sales, whether such sales are direct sales made on behalf of the marketplace facilitator or sales facilitated for a marketplace seller. Where the marketplace facilitator reports, collects and remits tax on behalf of a marketplace seller that is a remote retailer, such marketplace seller shall not be liable to report these sales and the sales shall not count towards such seller's Massachusetts sales threshold.
(c) The commissioner shall issue regulations and other guidance to further explain the sales and use tax rules that pertain to remote retailers. Such guidance shall include rules that further explain the requirements of said chapters 62C, 64H and 64I and as they pertain to marketplace sellers and marketplace facilitators, including rules that explain the rights and responsibilities of such sellers and facilitators with respect to one another. Such guidance may also include rules to aggregate the sales of related remote retailers with respect to the Massachusetts sales threshold.

These sections require online marketplace facilitators to collect and remit Massachusetts sales and use tax on behalf of vendors who sell their goods on the marketplace, provided the marketplace's sales to the Commonwealth exceed a threshold set by the Commissioner of the Department of Revenue. These sections also subject remote sellers to the registration, collection, and remittance requirements of the sales and use tax if the remote seller's sales to the Commonwealth exceed a threshold set by the Commissioner.

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