Bill
HB 5475
Overview: HB 5475 is a bill relating to sales and use taxes, specifically the liability and computation of these taxes.Purpose and Intent: The main goal of this bill is to update t
Overview: HB 5475 is a bill relating to sales and use taxes, specifically the liability and computation of these taxes.
Purpose and Intent: The main goal of this bill is to update the state's sales and use tax laws to address changes in the retail landscape, particularly the growth of e-commerce.
Key Provisions:
- Expands the definition of "retailer engaged in business in the state" to include online marketplaces and fulfillment services
- Requires online marketplaces to collect and remit sales tax on behalf of third-party sellers
- Lowers the sales tax collection threshold for out-of-state retailers from $100,000 in annual sales to $50,000
- Provides a grace period and safe harbor for retailers to come into compliance with the new requirements
Affected Parties and Impacts:
- Consumers will pay sales tax on more online purchases
- Online retailers and marketplaces will have increased tax collection and remittance responsibilities
- The state government will see increased sales tax revenue from e-commerce transactions
Procedural and Timeline Considerations:
The bill is currently in committee and recommended to be held for further study. If passed, the new sales tax requirements would take effect on January 1, 2026.
Compiled from official sources — confirm details with the bill’s official record.
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