On July 24, 2012, the U.S. House Committee on the Judiciary will hold a hearing on whether states should require online retailers to collect sales tax. 

The Committee will consider an Internet sales tax bill that would change current law and require retailers to collect and remit sales taxes on purchases made by out-of-state buyers.  The bill includes a “small seller exception” but it is insufficient to protect real small business entrepreneurs that use eBay. Small businesses would face proportionally greater burdens complying with proposed Internet sales tax laws in the form of increased purchase prices, 45 different filing procedures and potential audits by out-of-state tax officials. 

With heightened congressional attention to the subject, Main Street members should be concerned that Congress could be pressured to change current law to require out-of-state vendors to collect sales taxes. Make your voice heard and, take action!  Contact your Member of Congress, telling him or her how detrimental additional tax burdens would be to your business.

For more information on the upcoming hearing and a full list of witnesses, see http://judiciary.house.gov/hearings/calendar.html.