Streamlined Sales Tax Project

eBay opposes raising taxes on the Internet or its users, as well as any attempt to impose remote sales tax collection burdens on the small businesses who can least afford it. This is certainly not the time to impose a major new tax burden on Internet vendors working to implement successful new business models, nor is it wise macro-economic policy to impose what is effectively a tax increase on American consumers.

Background

• In 1992, the Supreme Court ruled that forcing remote sellers to collect sales tax in states in which they do not have a physical presence would constitute an undue burden on retailers and commerce in general.
• Since that ruling, states are prohibited from mandating the collection of remote sales taxes until the Congress changes federal law to grant them this new power, or the Supreme Court determines that the states have simplified their tax regimes enough to lift the burden on remote sellers.
• In order to promote their effort to encourage Congress to change federal law, a group of states has created the Streamlined Sales Tax Project (SSTP). While the stated goal of the SSTP is tax simplification, it does not adequately address the needs of eBay sellers like you.

The State Simplification Tax Project (SSTP) is still remarkably "un-simplified."

• It does little to reduce the 7,600 different state, county and city taxing jurisdictions. In fact, the SSTP allows for a different rate for each zip code and is filled with ever-changing rule exemptions, processes and procedures.
• Small businesses and entrepreneurs will be disadvantaged by a distant sales tax collection regime that forces you to comply with thousands of different rates, laws, filing instructions, and audit procedures.

No increased tax burden on small business.

• Small business expansion (fostered by Internet marketplaces like eBay), is a major job creator helping to move the U.S. economy moving forward.
• Given the economic challenges facing small businesses and families, now is not the time to impose new tax burdens on American consumers and small business owners, or do anything to hamper the growth of e-commerce.

Please support eBay's efforts to fight this major new tax burden on Internet vendors. Let your Member of Congress know how you feel. Take Action!