eBay warned sellers that Congress could pass online sales tax legislation once it returns from summer recess. The company’s government relations team keeps interested users – many of them small businesses – informed of regulatory issues through its eBay Main Street grassroots advocacy program.
eBay explained, “Congress will return from its annual summer recess after Labor Day, after which they are scheduled to be in session for four weeks in September and then another four weeks after the November election. It is this post-election “lame duck” session which carries the highest risk for the passage of Internet sales tax (IST) legislation.”
There are two proposed bills on the table – and eBay said it expects the Senate to vote on the Marketplace Fairness Act or the Remote Transactions Parity Act during the lame duck session.
“We do not yet know how the House of Representatives will respond to the Senate vote. It is possible that if the bill passes the Senate, the House could also take it up and pass it before adjourning for the year,” eBay said – and it expects the President to sign it into law if passed by Congress.
“If that happens, the earliest that states could start enforcing sales tax collection would likely be January 1, 2018,” eBay said.