Connecticut General Statutes 12-408e – *(See end of section for amended versions of subsections (a) and (b) and effective date.) Marketplace facilitators and marketplace sellers. Tax collection and remittance
*(a) As used in this section:
Terms Used In Connecticut General Statutes 12-408e
- Contract: A legal written agreement that becomes binding when signed.
- Digital goods: means audio works, visual works, audio-visual works, reading materials or ring tones, that are electronically accessed or transferred. See Connecticut General Statutes 12-407
- Person: means and includes any individual, firm, copartnership, joint venture, association, association of persons however formed, social club, fraternal organization, corporation, limited liability company, foreign municipal electric utility as defined in section 12-59, estate, trust, fiduciary, receiver, trustee, syndicate, the United States, this state or any political subdivision thereof or any group or combination acting as a unit, and any other individual or officer acting under the authority of any court in this state. See Connecticut General Statutes 12-407
- Personal property: All property that is not real property.
- Retailer: includes :
(A) Every person engaged in the business of making sales at retail or in the business of making retail sales at auction of tangible personal property owned by the person or others. See Connecticut General Statutes 12-407
- Seller: includes every person engaged in the business of selling tangible personal property or rendering any service described in any of the subparagraphs of subdivision (2) of this subsection, the gross receipts from the retail sale of which are required to be included in the measure of the sales tax and every operator as defined in subdivision (18) of this subsection. See Connecticut General Statutes 12-407
- Tangible personal property: includes (A) digital goods, (B) canned or prewritten computer software, including canned or prewritten software that is electronically accessed or transferred, other than when purchased by a business for use by such business, and any additional content related to such software, and (C) the distribution, generation or transmission of electricity. See Connecticut General Statutes 12-407
- Use: includes the exercise of any right or power over tangible personal property incident to the ownership of that property, except that it does not include the sale of that property in the regular course of business. See Connecticut General Statutes 12-407
(1) “Marketplace facilitator” means any person who (A) facilitates retail sales of at least two hundred fifty thousand dollars during the prior twelve-month period by marketplace sellers by providing a forum that lists or advertises tangible personal property subject to tax under this chapter or taxable services, including digital goods, for sale by such marketplace sellers, (B) directly or indirectly through agreements or arrangements with third parties, collects receipts from the customer and remits payments to the marketplace sellers, and (C) receives compensation or other consideration for such services;
(2) “Marketplace seller” means any person who has an agreement with a marketplace facilitator regarding retail sales of such person, whether or not such person is required to obtain a permit under section 12-409; and
(3) “Forum” means a physical or electronic place, including, but not limited to, a store, a booth, an Internet web site, a catalog or a dedicated sales software application, where tangible personal property or taxable services are offered for sale.
*(b) A marketplace facilitator shall be considered the retailer of each sale such facilitator facilitates on its forum for a marketplace seller. Each marketplace facilitator shall (1) be required to collect and remit for each such sale any tax imposed under section 12-408, (2) be responsible for all obligations imposed under this chapter as if such marketplace facilitator was the retailer of such sale, and (3) in accordance with the provisions of subdivision (3) of section 12-426, keep such records and information as may be required by the Commissioner of Revenue Services to ensure proper collection and remittance of said tax.
(c) Any marketplace seller who is a retailer with a valid permit issued under section 12-409 shall not be required to collect the tax imposed under this chapter for a particular sale and shall not include the receipts from such sale in its taxable receipts for purposes of its return under section 12-414, if: (1) The marketplace seller can show that such sale was facilitated by a marketplace facilitator (A) with whom the marketplace seller has a contract that explicitly provides that the marketplace facilitator will collect and remit sales tax on all taxable sales such facilitator facilitates for such seller, or (B) from whom such seller requested and received in good faith a properly completed certificate of collection certifying that such facilitator is registered to collect sales tax and will collect sales tax on all taxable sales by such seller and facilitated by such facilitator; and (2) any failure of such facilitator to collect the proper amount of tax for such sale was not the result of such seller providing such facilitator with incorrect information. The commissioner shall administer the provisions of this subsection in a manner consistent with section 12-410 and as if the language of said section had expressly referred to a certificate of collection under this section.
(d) Any purchaser of tangible personal property or taxable services who overpaid sales or use tax to a marketplace facilitator may submit a claim for refund with the commissioner in accordance with the provisions of section 12-425, in such form and manner as the commissioner prescribes. No such purchaser shall have a cause of action against a marketplace facilitator for the recovery of any such overpayment under any provision of the general statutes.