Reverb refunds taxes on refunded orders where the taxes were collected & remitted from Marketplace Facilitator States.
For Fully Refunded Orders:
As a buyer, the full tax amount will be refunded back to you.
As a seller, you will only be able to select up to the pre-tax amount to refund on Reverb. When the full pre-tax order total is refunded, Reverb refunds back the taxes charged to the buyer.
For Partially Refunded Orders:
Reverb pro-rates the tax amount on partial refunds. We will automatically calculate the appropriate tax amount that needs to be refunded.
As a seller, simply issue the agreed-upon refund amount and the pro-rated tax amount will be refunded to the buyer by Reverb.
For a list of states that Reverb collects & remits taxes on, you can view this article.