State legislatures across the country are threatening Internet commerce, especially for small businesses, artisans and consumer sellers, through legislation that will impose tax burdens on even the most casual sellers and online marketplaces. Since the beginning of the year, over 40 bills have been introduced in more than 25 states on the issue. In fact, New York, Rhode Island, Minnesota, Georgia, Washington and Texas have all introduced bills that circumvent sellers to require Internet marketplaces to collect and remit state sales tax for any transactions, including out-of-state purchases those consumers make from even the most casual sellers.   

Proponents of Internet sales tax are pushing these small business-unfriendly bills at the state level in an effort to encourage Congress to pass a federal bill and/or get the courts to overturn existing legal precedent that requires that a business have a physical presence to compel them to collect and remit sales tax to the state. This includes:

• Two harmful Internet sales tax bills in Utah that we successfully defeated;
• A provision requiring marketplaces to collect and remit sales tax for out of state retailers that was proposed by Governor Cuomo in New York which we are actively fighting against;
• Similar marketplaces-related proposals that are being considered in Georgia, Minnesota, Rhode Island, Texas and Washington, which eBay is working with various stakeholders to oppose; 
• A Mississippi bill that failed to pass, with the Lt Governor acknowledging: “Because the Supreme Court made it clear 25 years ago that states do not have the authority to tax Internet sales, this bill is unconstitutional and any promised new revenue is simply fake money";
• A slew of unconstitutional, overreach bills in Nebraska, New Mexico, Wyoming, North Dakota, Hawaii, Arkansas, Maryland, North Carolina, and Indiana that we are working with  our community of users to oppose.

The eBay Government Relations team will continue to fight against these potentially harmful state bills on behalf of all eBay sellers and buyers.