Marketplace providers must certify, collect, report, and remit certain sales taxes for marketplace sales; marketplace sellers have recordkeeping and information duties, and there are liability rules and a court class-action bar.
Sec. 151.0242. MARKETPLACE PROVIDERS AND MARKETPLACE SELLERS. (a) In this section: (1) "Marketplace" means a physical or electronic medium through which persons other than the owner or operator of the medium make sales of taxable items. The term includes a store, Internet website, software application, or catalog. (2) "Marketplace provider" means a person who owns or operates a marketplace and directly or indirectly processes sales or payments for marketplace sellers. (3) "Marketplace seller" means a seller, other than the marketplace provider, who makes a sale of a taxable item through a marketplace. (b) Except as otherwise provided by this section, a marketplace provider has the rights and duties of a seller or retailer under this chapter with respect to sales made through the marketplace. (c) A marketplace provider shall: (1) certify to each marketplace seller that the marketplace provider assumes the rights and duties of a seller or retailer under this chapter with respect to sales made by the marketplace seller through the marketplace; (2) collect in the manner provided by Subchapters C and D the taxes imposed by this chapter on sales of taxable items made through the marketplace; and (3) report and remit under Subchapter I the taxes imposed by this chapter on all sales made through the marketplace. (d) A marketplace seller who in good faith accepts a marketplace provider's certification under Subsection (c)(1) shall exclude sales made through the marketplace from the marketplace seller's report under Subchapter I, notwithstanding Section 151.406. (e) A marketplace seller shall retain records for all marketplace sales as required by Section 151.025. (f) A marketplace seller shall furnish to the marketplace provider information that is required to correctly collect and remit taxes imposed by this chapter. The information may include a certification of taxability that an item being sold is a taxable item, is not a taxable item, or is exempt from taxation. (g) Except as provided by Subsection (h), a marketplace provider is not liable for failure to collect and remit the correct amount of taxes imposed by this chapter if the marketplace provider demonstrates that the failure resulted from the marketplace provider's good faith reliance on incorrect or insufficient information provided by the marketplace seller. The marketplace seller is liable for a deficiency resulting from incorrect or insufficient information provided by the marketplace seller. (h) A marketplace provider and marketplace seller that are affiliates or associates, as defined by Section 1.002, Business Organizations Code, are jointly and severally liable for a deficiency resulting from a sale made by the marketplace seller through the marketplace. (i) This section does not affect the tax liability of a purchaser under Section 151.052 or 151.102. (j) A court may not certify an action brought against a marketplace provider concerning this section as a class action. (k) The comptroller may adopt rules and forms to implement this section and by rule except certain marketplace providers from some or all of the requirements of this section. (l) A marketplace seller who places a ticket or other admission document for sale through a marketplace must certify to the marketplace provider that the taxes imposed by this chapter on the original purchase of the ticket or admission document were paid. A marketplace provider who in good faith accepts a marketplace seller's certification under this subsection may take the deduction provided by Section 151.432 on behalf of the marketplace seller. Added by Acts 2019, 86th Leg., R.S., Ch. 182 (H.B. 1525), Sec. 2, eff. October 1, 2019. Amended by: Acts 2021, 87th Leg., R.S., Ch. 569 (S.B. 477), Sec. 4, eff. October 1, 2021.