Lawmakers Move To Tax Online Delivery

Via The Washington Examiner:

Legislation that would explicitly require marketplace facilitators, such as Grubhub, Doordash or Uber Eats, to collect and remit sales tax on all transactions is working its way through the Tennessee General Assembly.

A marketplace facilitator is defined as a company that facilitates a transaction between a marketplace seller and a buyer, such as Grubhub or Doordash, which makes money by picking up food from a restaurant and delivering it to the buyer.

Senate Bill 2182 would require transactions between the seller and the facilitator be taxed. The change is estimated to generate about $84 million in additional revenue for the state.

The bill’s sponsor, Sen. Jack Johnson, R-Franklin, told the Senate Finance, Ways, and Means Revenue Subcommittee on Tuesday that current law requires these transactions be taxed, but some transactions are going untaxed because the law is too vague. He said 45 states have sales tax, and 40 of them have explicit language to account for marketplace facilitators. He hopes to make Tennessee the 41st.