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eBay Thanks Sellers for Advocating on Sales Tax Issue

eBay Main Street

eBay Main StreetSome members of Congress wanted to see an online-sales tax provision included in the latest spending bill. On Monday, eBay thanked its sellers for writing to their representatives to urge them not to include it.

The company noted that participants sent over 85,000 letters to their members of Congress, which passed the bill on Friday without including an online sales tax provision. But it noted the battle is not over.

eBay Main Street blog post follows:

A BIG Internet Sales Tax Win for Small Sellers
For the past few weeks, some members of Congress have been working to insert harmful Internet sales tax legislation into a must-pass spending bill. If passed, this proposal – the Remote Transaction Parity Act – would mean that items sold to buyers from small, out-of-state companies, artisans, and average consumers over the Internet would be taxed. Small businesses that use online marketplaces to sell goods across the country would be harshly impacted in a variety of ways. The RTPA includes no small business exemption, meaning the smallest of businesses would be required to manage sales tax collection and remittance for more than 9,600 taxing jurisdictions across the country. These same small businesses would also be exposed to costly and resource constraining compliance and audit requirements from out-of-state tax collectors.

Fortunately eBay Main Street Members stepped up once again. Our community of engaged ecommerce participants sent over 85,000 letters to their members of Congress, letting their legislators know that the RTPA is bad for American small businesses and asking their legislators to help keep the RTPA out of the current spending bill. And it worked! On Friday the spending bill was passed without the inclusion of an Internet sales tax. We would like to offer our heartfelt thanks to all members of our community who made their voices heard and helped protect Internet-enabled small businesses.

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Unfortunately the battle is not yet over. The US Supreme Court has agreed to hear a case brought forth by South Dakota as they (like other states) attempt to implement their own Internet sales tax regime. The eBay Government Relations team will be monitoring this case closely and will continue to do all we can to protect small businesses from harmful and unfair sales tax legislation.

Source: eBay Main Street Blog Post

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Ina Steiner
Ina Steiner
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 ina@ecommercebytes.com.

2 thoughts on “eBay Thanks Sellers for Advocating on Sales Tax Issue”

  1. I don’t sell on eBay but I am really grateful they are leading the charge on this. Additional taxes and the monumental amount of time calculating them (49 more states plus DC and Puerto Rico) is going to be a time suck few of us can even comprehend. eBay may get a lot of things wrong– I don’t know since I’m just a buyer there– but this they have right.

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