Arkansas: Yard-Sale Host is not a Marketplace Facilitator

The Arkansas Department of Revenue recently addressed whether a business that offered free spaces in its parking lot for yard sales was subject to Arkansas’ newly enacted remote seller and marketplace facilitator laws.

Podcast Transcript

A legal counsel for the Arkansas Department of Revenue recently addressed a taxpayer’s concern that its business would be pulled into the state’s new marketplace facilitator law. The taxpayer was a business that let individuals hold yard sales in its parking lot. The taxpayer did not charge people to for the space, as it drove people to his store, which was somewhat outside of town. The taxpayer knew that the yard sales did not meet the $100,000 of sales economic nexus threshold, but he was concerned that the 200 transactions threshold might be exceeded. Under Arkansas law, a marketplace facilitator is defined as a person that facilitates sales by: (A) Listing or advertising tangible personal property, [or] taxable services … for sale in a forum; and (B) either directly or indirectly…collecting payment from a purchaser and transmitting the payment to the seller regardless of whether the person receives compensation or other consideration in exchange for the person's services in collecting and transmitting the payment. The Legal Counsel concluded that the taxpayer was not a marketplace facilitator, as defined, because it did not list or advertise the tangible personal property for sale at the yard sales and did not collect payment on behalf of any seller. Thus, the taxpayer did not have an obligation to collect Arkansas sales and use tax on sales at the yard sales on the seller’s behalf. Please stay tuned to TWIST for more developments on new state marketplace facilitator laws. 

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