EcommerceBytes-NewsFlash, Number 2578 - July 04, 2011     1 of 3

Most eBay Sellers Exempt from California Sales Tax Bill

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eBay said most of its sellers would be exempt from a new California law requiring out-of-state retailers to collect sales tax in the state if they deal with California businesses. (See, "How California Sales-Tax Collection Legislation Affects Small Sellers - link.)

eBay Vice President and Deputy General Counsel - Government Relations Tod Cohen released the following statement on Friday regarding the passage of the California budget and Internet sales tax bill:

"eBay believes that the legislative actions by the State of California aimed at forcing out-of-state retailers to collect and remit California state sales taxes violate the US Supreme Court's Quill decision governing sales tax collection. It is important to note that the new California law excludes all non-California retailers who sell less than $500,000 to California buyers in a year. We believe this exclusion covers the vast majority of all eBay sellers. eBay is committed to protecting all sellers from unconstitutional sales tax laws and we are exploring technology tools, marketing practice changes and legal options aimed at addressing the concerns of sellers who could be impacted by this new law."

eBay has a page on its website that explains its position on the nexus sales tax issue in which it states that the company opposes raising taxes on the Internet or its users, as well as any attempt to impose Internet sales tax collection burdens on small businesses, and encourages users to take action by writing to lawmakers.

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About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to

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