Marketplace Tax Information
Why does Best Buy collect certain taxes and fees on purchases made by customers on the Best Buy Marketplace?
All U.S. states that impose a sales tax have implemented marketplace facilitator laws. Accordingly, Best Buy will calculate, collect, and remit applicable sales taxes and fees on transactions conducted through the Best Buy Marketplace.
What is a marketplace facilitator?
Generally, a marketplace facilitator is an online platform that enables third-party sellers to sell goods and services.
What are marketplace facilitator tax laws?
Marketplace facilitator laws are regulations that require online platforms to collect and remit sales tax on behalf of third-party sellers.
What are the impacts of marketplace facilitator laws?
In states with marketplace facilitator laws, the facilitator must collect and remit sales tax on behalf of sellers. If you sell products outside of the marketplace—such as through your own website, a physical storefront, or direct sales—you may need to handle sales tax collection and reporting yourself, as marketplace tax rules typically only apply to transactions made within the platform.
Where does Best Buy collect?
Best Buy is registered to collect and remit taxes and fees in the jurisdictions listed below. As a marketplace facilitator, Best Buy will remit collected taxes and fees directly to the tax authorities in these jurisdictions.
| State | Sales Tax1 | Other Taxes and Fees |
|---|---|---|
| Alabama | Yes | E911 Prepaid Wireless Fee |
| Alaska | Local Only2 | |
| Arizona | Yes | E911 Prepaid Wireless Fee |
| Arkansas | Yes | Prepaid Wireless Public Safety Charge |
| California | Yes | Mobile Telephony Services (MTS) and 988 Fees, Environmental Waste Recycling Fee, Mattress Recycling Fee |
| Colorado | Yes | Prepaid Wireless Fees (E911, 988, TRS), Retail Delivery Fee, Public Improvement Fees (PIF) |
| Connecticut | Yes | E911 Prepaid Wireless Fee, Mattress Recycling Fee |
| Delaware | No Sales Tax | E911 Prepaid Wireless and 988 Fees |
| District of Columbia | Yes | E911 Prepaid Wireless Fee |
| Florida | Yes | E911 Prepaid Wireless Fee |
| Georgia | Yes | E911 Prepaid Wireless Fee |
| Hawaii | Yes | |
| Idaho | Yes | Prepaid Wireless E911 Surcharge |
| Illinois | Yes | Prepaid Wireless E911 Surcharge |
| Indiana | Yes | E911 Prepaid Wireless Fee |
| Iowa | Yes | E911 Prepaid Wireless Fee |
| Kansas | Yes | E911 Prepaid Wireless Fee |
| Kentucky | Yes | E911 Prepaid Wireless Fee |
| Louisiana | Yes | Prepaid Wireless E911 Surcharge |
| Maine | Yes | Prepaid Wireless E911 Surcharge, Service Provider Tax |
| Maryland | Yes | E911 Prepaid Wireless Fee |
| Massachusetts | Yes | |
| Michigan | Yes | Prepaid Wireless E911 Surcharge |
| Minnesota | Yes | Prepaid Wireless E911, TAM, and 988 Fees, Road Improvement and Food Delivery Fee |
| Mississippi | Yes | E911 Prepaid Wireless Fee |
| Missouri | Yes | Prepaid Wireless E911 Surcharge |
| Montana | No Sales Tax | E911 Prepaid Wireless Fee |
| Nebraska | Yes | E911 Prepaid Wireless Fee |
| Nevada | Yes | |
| New Hampshire | No Sales Tax | Prepaid Wireless E911 Surcharge, Communication Services Tax |
| New Jersey | Yes | |
| New Mexico | Yes | E911 Prepaid Wireless Fee |
| New York | Yes | E911 Prepaid Wireless Fee |
| North Carolina | Yes | E911 Prepaid Wireless Fee, White Goods Disposal Tax |
| North Dakota | Yes | E911 Prepaid Wireless Fee |
| Ohio | Yes | E911 Prepaid Wireless Fee |
| Oklahoma | Yes | E911 Prepaid Wireless Fee |
| Oregon | No Sales Tax | E911 Prepaid Wireless and 988 Fees, Mattress Recycling Fee, Bicycle Excise Tax |
| Pennsylvania | Yes | Prepaid Wireless E911 Surcharge |
| Rhode Island | Yes | E911 Prepaid Wireless Fee, Mattress Recycling Fee |
| South Carolina | Yes | E911 Prepaid Wireless Fee |
| South Dakota | Yes | E911 Prepaid Wireless Fee |
| Tennessee | Yes | E911 Prepaid Wireless Fee |
| Texas | Yes | E911 Prepaid Wireless Fee |
| Utah | Yes | E911 Prepaid Wireless Fee |
| Vermont | Yes | Prepaid Wireless E911 Surcharge |
| Virginia | Yes | E911 Prepaid Wireless and 988 Fees |
| Washington | Yes | E911 Prepaid Wireless and 988 Fees |
| West Virginia | Yes | |
| Wisconsin | Yes | Police and Fire Protection Fee, Premier Resort Area Tax |
| Wyoming | Yes | E911 Prepaid Wireless Fee |
2. Taxes administered by the Alaska Remote Seller Sales Tax Commission.
Version Date: June 2, 2025
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Why does Best Buy collect tax on seller fees?
The tax laws in some states may impose taxes and fees on charges Best Buy collects from sellers related to sales made by sellers on the Best Buy marketplace. As a retailer with nation-wide presence, Best Buy is required to comply with these laws and will collect applicable taxes and fees on amounts it charges sellers.
How are returns and tax refunds processed?
If Best Buy deems the situation requires a refund to the customer, that refund will be passed along to the seller and will offset their next payment.
What about Form 1099-K Reporting?
As a marketplace facilitator, Best Buy may be required to issue Form 1099-K to sellers with sales that meet the reporting threshold. Best Buy will issue Form 1099-K by January 31. A copy of this form will also be sent to the IRS.
This document is not intended to serve as tax advice or a comprehensive tax determination. Sellers are encouraged to consult appropriate tax or legal professionals.