ND SB2338

Requires marketplace facilitators without physical presence in North Dakota to collect and remit sales and use tax if combined sales meet the threshold amount in section 57-39.2-02.2, effective October 1, 2019.

Defines "marketplace facilitator" as a person contracting with sellers to facilitate sales through a physical or electronic marketplace and engaging in activities such as payment processing, fulfillment services, listing products, setting prices, advertising, or customer service.

Establishes that marketplace facilitators are considered retailers responsible for collecting and remitting taxes, maintaining records, obtaining permits, and certifying to marketplace sellers that they will collect taxes on their behalf.

Prohibits class action lawsuits against marketplace facilitators on behalf of purchasers for overpayment of sales or use tax collected by the facilitator.

Allows marketplace facilitators to avoid liability for failure to collect correct tax if they demonstrate a system to require accurate seller information and the failure resulted from reliance on incorrect information provided by the seller, provided the facilitator and seller are not affiliated.