Reverb Set to Collect Sales Tax in 10 More States

Reverb is currently collecting and remitting sales tax on behalf of its sellers in Washington and Minnesota, and by July 15, the company plans to start collecting sales tax in the following marketplace facilitator states and Washington, D.C.: Alabama, Arizona, Connecticut, Iowa, New Jersey, Oklahoma, Pennsylvania, South Carolina, South Dakota and Wyoming.

"If somebody has economic nexus as an individual seller in those states and they're selling through Reverb, they will no longer have to collect and remit taxes on their own. We will do it for them," said Collin Williams, general counsel at Reverb. "We're trying to do the right thing by all of our sellers and really make it as easy as possible."

If Reverb sellers meet the individual thresholds in nonmarketplace facilitator states, they will still be responsible for collecting and remitting sales tax for the time being, according to Williams.

"We believe most, if not all, states will eventually enact some sort
of marketplace facilitator statute because they're going to want to collect from places like eBay, Amazon and all these different digital marketplaces," he said. "We're taking a proactive view toward this.
As more states create this legislation, we'll simply roll those states
out on the platform. The whole goal of this is to make it easy on
our sellers."