New York State Adds Online Sales Tax Collection Requirements for Marketplace Providers


On April 12th, 2019 Governor Cuomo signed Senate Bill S1509B, requiring Marketplace Providers to obtain a Certificate of Authority and collect online sales tax on behalf of Marketplace Sellers. Marketplace Sellers that receive a Certificate of Collection from the Marketplace Provider are relieved of the duty to collect sales tax. This act shall apply to sales made on or after September 1, 2019.


Senate Bill S1509B defines a "Marketplace Provider" as:


A person who, pursuant to an agreement with a Marketplace Seller, facilitates sales of tangible personal property by a Marketplace Seller. A person "facilitates a sale of tangible personal property" for purposes of this paragraph when the person meets both of the following conditions:

  • Such person provides the forum in which, or by means of which, the sale takes place, or the offer of sale is accepted, including a shop, store, or booth, an internet website, catalog, or similar forum; and,

  • Such person or an affiliate of such person collects the receipts paid by a customer to a Marketplace Seller for a sale of tangible personal property, or contracts with a third party to collect such receipts. A "sale of tangible personal property" shall not include the rental of a passenger car. Persons are affiliated if one person has an ownership interest of more than five percent, whether direct or indirect, in another, or where an ownership interest of more than five percent, whether direct or indirect, is held in each of such persons by another person or by a group of other persons that are affiliated persons with respect to each other.

A person is not a Marketplace Provider if:

  • Such person has no physical presence in New York; and

  • For the immediately preceding four quarterly periods can show that the cumulative total gross receipts of sales it has made or facilitated of property delivered in this state does not exceed $300,000; or

  • Has not made or facilitated more than 100 sales of property delivered in this state.

However, such person may elect to register as a marketplace provider, and, once registered, will be subject to the provisions of this article.



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