Governor Tony Evers announced Tuesday, an estimated $256.4 million in tax relief for Wisconsin taxpayers as a result of the additional revenue collected by the Department of Revenue (DOR) from out-of-state retailers and marketplace providers for the twelve-month period ending September 30, 2020.
A 2018 decision by the U.S. Supreme Court in South Dakota v. Wayfair expanded the state’s authority to require out-of-state retailers and marketplace providers to collect and remit sales and use tax during the period beginning October 1, 2019 and ending September 30, 2020.
This revenue estimate is based on tax amounts reported by filers who registered to collect taxes after the Wayfair decision and are located outside of the state. Additional revenue reported by marketplace providers is included in this amount as the marketplace provisions included in 2019 Wisconsin Act 10 took effect January 1, 2020.
Act 10 also defined a marketplace provider and required them to collect and remit sales and use tax on taxable sales they facilitate online on behalf of third-party sellers beginning on January 1, 2020, creating a more level playing field between brick and mortar stores and online retailers.