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Lawmakers Float a Bill to Freeze Sales Tax “Chaos” for Small Biz

Online Sales Tax

Online Sales TaxRepublican and democratic lawmakers in Congress have introduced a bill that would be a huge relief to small businesses worried about online sales tax obligations in the wake of the Supreme Court case overturning Quill.

Among the provisions: a $10 million exemption for small-business sellers until the states simplify collection.

It would also protect sellers from states who might want to collect sales tax retroactively for any sale prior to June 21, 2018. According to BNA, of the 25 states that have enacted an economic nexus model, only two – South Dakota and Maine – prohibit the state from applying their laws retroactively.”

Congressperson Jim Sensenbrenner of Wisconsin introduced the Online Sales Simplicity and Small Business Relief Act.

eBay praised the bill in an announcement on Friday. The company said over one million Americans had signed a petition calling for Congress to pass federal legislation.

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But there are critics of the bill, including state legislatures, not surprisingly. One  said the bill should recognize the Streamlined Sales and Use Tax Agreement that has been adopted by more than 20 states, according to The Hill.

You can read the lawmakers’ press release here.

In related news, eBay announced it will begin collecting sales tax on transactions made to buyers located in three states thanks to Marketplace Facilitator laws, as we reported on the EcommerceBytes Blog this morning.

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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 “Lawmakers Float a Bill to Freeze Sales Tax “Chaos” for Small Biz”

  1. Indeed, an amendment to the Constitution would end the problem once and for all, but I am sorry, The End, it is an “import / export” thing. You used the correct term “exported” in previous posts — “sold between states” is not accurate.

    As has been pointed out before, the Constitution says no tax on exports. Accordingly the Revenooers are trying to grab taxes bleeding us dry by taxing IMPORTS into their states. Stuff exported out of a state cannot be taxed, per the Constitution. Sadly our founding fathers did not protect us by ALSO including in the same paragraph that Stuff IMPORTED INTO a state cannot be taxed.

    But then, the Founding Fathers had no idea what nightmarish things were going to happen over the next few hundred years and sales taxes were not even a gleam in anyone’s eyes, back then, when many citizens’ priority was simply to be able to get to the next springtime without dying.

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