After U.S. Supreme Court Case South Dakota v. Wayfair, Inc. made fundamental policy changes in the way states collect internet-based sales and uses taxes, the recent emergence of Marketplace Facilitators across the nation has enhanced states’ ability to gather more revenue and more closely monitor eCommerce. While at the same time, it is great for direct sales in the wine industry by simplifying reporting for the sellers.   In general, a Marketplace Facilitator contracts with marketplace sellers to facilitate the sale of their products through an electronic or physical marketplace, which varies by state in terms of regulations, tax remittance, and licensing requirements. Some functions are universal, such as payment processing, customer service activities, and providing an infrastructure for ecommerce transactions. Commonly known Marketplace Facilitators are Amazon, Etsy, and eBay.   Marketplace Facilitators in the wine industry can quickly remove the criticism from som

In our continuing series of reviewing the issues around compliant direct sales and shipping, we review the topic of tax calculation, collection, and remittance that are perhaps the most important considerations for state regulators in the alcoholic beverage industry at all levels of government.   Taxes are one of four focus areas for regulators. Others include Age Verification, Licensing and Compliance, and Auditability.  Think of the four areas as ALTA.   Wineries and other producers must navigate a complex maze of sales and excise taxes. With more than 3,800 individual tax rates across local, state, and federal jurisdictions, with a maze of over 2.6 million zip codes, there is a lot to manage. This means there are endless ways to incorrectly calculate what is owed to stay legally compliant. Being delinquent in tax payments is a serious threat to any enterprise and can lead to nightmare scenarios that push the most honest, well-intentioned business owners