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How state sales tax applies to Reverb orders

Quick answer

Reverb is required to collect and remit sales tax for applicable orders with a shipping destination in the states listed below. There will be an estimated tax upon checkout in the shopping cart.

View all US states in which Reverb collects and remits sales tax
  • Alabama, as of 7/17/19*
  • Alaska, as of 4/1/20**
  • Arizona, as of 7/17/19
  • Arkansas, as of 9/5/19
  • California, as of 10/14/19
  • Colorado, as of 10/14/19**
  • Connecticut, as of 7/17/19
  • Florida, as of 7/1/21
  • Georgia, as of 4/1/20
  • Hawaii, as of 1/1/20
  • Idaho, as of 9/5/19
  • Illinois, as of 1/1/20
  • Indiana, as of 10/14/19
  • Iowa, as of 7/17/19
  • Kansas, as of 7/1/21
  • Kentucky, as of 8/19/20
  • Louisiana, as of 9/1/20
  • Maine, as of 10/14/19
  • Maryland, as of 10/14/19
  • Massachusetts, as of 10/14/19
  • Michigan, as of 1/1/20
  • Minnesota, as of 6/3/19
  • Mississippi, as of 8/1/20
  • Missouri, as of 1/1/2023
  • Nebraska, as of 8/19/19
  • Nevada, as of 10/14/19
  • New Jersey, as of 7/17/19
  • New Mexico, as of 9/5/19
  • New York, as of 8/19/19
  • North Carolina, as of 3/1/20
  • North Dakota, as of 10/14/19
  • Ohio, as of 9/5/19
  • Oklahoma, as of 7/17/19
  • Pennsylvania, as of 7/17/19
  • Puerto Rico, as of 5/1/21
  • Rhode Island, as of 9/19/19
  • South Carolina, as of 7/17/19
  • South Dakota, as of 7/17/19
  • Tennessee, as of 10/14/19
  • Texas, as of 10/14/19
  • Utah, as of 10/14/19
  • Vermont, as of 8/19/19
  • Virginia, as of 8/20/19
  • Washington, as of 3/8/19
  • Washington D.C., as of 7/17/19
  • West Virginia, as of 8/19/19
  • Wisconsin, as of 10/14/19
  • Wyoming, as of 7/17/19
Reverb will not collect and remit sales tax for purchases with a shipping destination in Delaware, Montana, New Hampshire, or Oregon.

*Seller has collected the simplified sellers use tax on taxable transactions delivered into Alabama and the tax will be remitted on the customer’s behalf to the Alabama Department of Revenue. Seller’s program account number is SSU-R010560295.

**The rates in some states and territories include home rule cities, which are local governments that impose and administer their own local sales and use taxes. Reverb is required to collect sales taxes in home rule cities in these locations.

I live in one of these states. Why am I seeing taxes?

More states have passed similar laws, and we will be updating our platform to handle those states in the future.  We’ll let you know when states are added.

Prior to the Supreme Court South Dakota v. Wayfair decision in 2018, it was unconstitutional for states to charge sales tax against individuals or companies who didn’t have a physical presence or location in the state. In Wayfair, the Supreme Court replaced the “physical presence” requirement with an “economic presence” requirement.

How does that matter for marketplaces?

One way “economic presence” is created in a state is when selling through a digital marketplace like Reverb, eBay, Etsy, Amazon, etc. (Marketplace States).

That means when someone who lives in a state with a marketplace tax law makes a purchase on a marketplace like Reverb, tax must be paid on that sale.

Why are states changing their laws?

With the change in federal precedent, states are hoping to bring in more revenue through taxes on their residents’ online purchases. Marketplaces are just one way they can do this.

I want to sell on Reverb. How do marketplace and other tax laws impact me?

Check out our article on What Sellers Need to Know About New Sales Tax Rules.

If you are tax exempt as a buyer relating to the Wayfair changes you can email Attach your 501(c)(3) letter or reseller certificate to the email and we will get this setup for you!
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