In the wake of the recent U.S. Supreme Court decision on South Dakota v. Wayfair, many states are currently convening discussions and stakeholder meetings to redefine how they will require businesses to collect and remit Internet sales taxes. For example, in Utah, the Governor convened a special session of the Legislature to consider adopting legislation similar to the South Dakota legislation which was upheld by the U.S. Supreme Court. The Utah Legislature passed S.B. 2001 on a nearly unanimous vote and the legislation was recently signed by Governor Herbert. The Utah legislation does not currently provide a small business protection threshold. In addition, the Governor of South Dakota is considering convening a special session of the South Dakota State Legislature in late summer or early fall in order to provide clarity on its own legislation following the Wayfair decision.

In contrast, other states such as California and Texas are taking a more deliberate approach on how to retool their current requirements for collecting and remitting Internet sales tax. The Chairs of the California State Assembly and State Senate for Revenue & Taxation have announced that they will convene a stakeholder process that takes into account the interests of all stakeholders while simultaneously promoting a balanced marketplace for California’s consumers and protecting small businesses.

In Texas, the State Comptroller has flagged several key issues for the Legislature to consider and provide guidance in the next legislative session commencing in January 2019. State Comptroller Hegar has stated that his office will seek input from businesses, consumers and lawmakers about what needs to be done through revised regulations and will provide his perspective on what the Texas Legislature needs to clarify in statute during the next legislative session.

As states begin the work to implement the Wayfair decision, eBay will continue to push for reasonable small business protections and similar collecting and remitting standards across the states to avoid confusion, mistakes, and penalties on small businesses.