This week, Congressman Bob Goodlatte (R-VA), Chairman of the House Judiciary Committee, circulated a draft Internet sales tax bill. As Chairman of the House Judiciary Committee, Congressman Goodlatte has jurisdiction over interstate commerce issues, including Internet sales taxes. Last Congress, in response to the Senate passage of the Marketplace Fairness Act, Chairman Goodlatte released seven basic principles related to the collection of Internet sales taxes.The principles were intended to guide future discussions in Congress on how to address the issue of Internet sales taxes without overly burdening online businesses and stifling Internet and mobile commerce.

The Chairman’s draft bill would base sales taxes on the location of the seller, not the buyer. The proposal is an attempt to resolve some of the issues with the Marketplace Fairness Act, which would force tech-enabled small businesses to collect sales taxes in every jurisdiction across the country, even if they are not physically located in the state. At a breakfast sponsored by the Christian Science Monitor this week, Goodlatte said that “citizens of the states are going to buy products from all over the country and all over the world and that definitely causes a loss of revenue” but Congress should “not allow a state to reach out and regulate a business outside of its jurisdiction.”

In a recent Bloomberg article, eBay spokeswoman, Amanda Miller, said “We want innovative small businesses to have room to grow and not be burdened by additional tax and compliance requirements when they operate online, which was one of Chairman Goodlatte’s fundamental principles that helped shape his work on this issue”.

eBay appreciates Chairman Goodlatte’s thoughtful approach on this issue and his efforts to address the small business concerns in the Marketplace Fairness Act. Find more information on eBay Inc.’s position on the Internet sales tax issue.