Probably the most significant and recent development in state tax collection efforts is the rise of marketplace facilitator laws. These laws shift the sales tax collection and remittance obligations from a third-party seller to the marketplace facilitator. Placing the burden of sales and use tax compliance on the marketplace provider, and not the seller, means that the states can reduce the cost of compliance while also collecting more revenue efficiently, a clear win-win for the states.

Trend: Marketplace facilitator state rules have not only survived Wayfair but will continue to flourish. Although a rapidly moving target, currently, many states and Washington, D.C., already have statutes in place and many others have proposed legislation. I expect most states to have such laws in place by the end of 2019, or early 2020.

But wait, there’s more! Sellers are not completely off the hook. They will still have to track any sales not transacted within the marketplace facility. Also, it remains their responsibility to ensure that compliance rules and requirements are being met, and it’s important to note that this could result in significant and unexpected expenses to hit businesses.