SB 396 Summary

• Designates marketplace facilitators as the sellers of tangible personal property, intangible property, or services for tax purposes, making them liable for collecting and remitting taxes on behalf of other sellers.

• Requires non-facilitator forum providers (that list items for sale and process orders) to post conspicuous notices informing purchasers of potential use tax obligations and provide written notice at each sale.

• Mandates non-facilitator forum providers to report to the Department of Taxation by April 20 following each tax year, including purchaser names, addresses, delivery locations, purchase amounts, and seller information.

• Establishes a $1,000 penalty per month (up to $12,000 maximum) for failure to comply with reporting and notice requirements, unless failure is due to reasonable cause.

• Allows non-facilitator forum providers to elect to be treated as sellers instead of complying with notice and reporting requirements.

• Takes effect January 1, 2020.