House Bill 250 Summary

• Defines "marketplace facilitator" as a person contracting with sellers to facilitate retail sales through physical or electronic marketplaces, including activities like payment processing, fulfillment, listing products, setting prices, and providing customer service.

• Requires marketplace facilitators to register with the state tax commission and collect, report, and pay state sales and use taxes on facilitated retail sales, with a 45-day compliance period for those with physical presence making their first Idaho sale.

• Extends sales tax collection requirements to out-of-state retailers without Idaho physical presence that have cumulative gross receipts from sales delivered into Idaho exceeding $100,000 in the previous or current calendar year, effective June 1, 2019.

• Directs all state sales and use taxes collected by marketplace facilitators on third-party seller transactions and out-of-state retailers to be distributed to a state refund account (for current refund claims) and the tax relief fund established in section 57-811.

• Provides marketplace facilitators liability protection for tax errors caused by incorrect information from retailers (unless parties are related) and allows the state tax commission to waive penalties and interest when reasonable cause exists.