Idaho Proposes Economic and Marketplace Nexus Legislation

As one of the last holdouts to join every other state with a sales tax, Idaho has proposed economic and marketplace nexus legislation for remote retailers. If passed, the legislation would take effect June 1, 2019. The Idaho House is considering two bills, H.B. 250 and H.B. 239, that would amend and add to existing law to define terms and to provide for the powers and duties of remote retailers and marketplace facilitators regarding the collection of Idaho sales tax.

H.B. 250 provides that on and after June 1, 2019 (H.B. 239 lists July 1, 2019), a remote retailer that lacks physical presence in the state must register to collect tax if, in the previous or current calendar year, the retailer has:

  • Cumulative gross receipts from sales delivered into Idaho that exceed $100,000

Under both bills, marketplace facilitators will be required to register with the state and collect, report, and pay state sales and use taxes on any retail sales facilitated by the marketplace provider. Marketplace providers without physical presence in Idaho must register once the combined total of its own sales and any sales it facilitates on behalf of its sellers exceed the $100,000 threshold. (H.B. 250, as introduced in the Idaho House of Representatives on March 7, 2019 and H.B. 239, as introduced in the Idaho House of Representatives on March 5, 2019)

UPDATE: Idaho has passed economic and marketplace nexus legislation effective June 1, 2019. For the details, read our news item: Idaho Enacts Economic and Marketplace Nexus Legislation.

Posted on March 12, 2019