Just an FYI, if you haven’t seen it already, you need to read this article by Janet Novack of Forbes.
It describes a study, “Do eBay Sellers Comply With State Sales Taxes?,” just published in the National Tax Journal (a quarterly publication available only to National Tax Association members).
The study monitored 21,000 eBay listings posted by 7,000 sellers with 9,300 buyers over a 24-hour span. It saw $755,905 worth of consumer electronics sold, but only $60,249 of those sales were made between a seller and buyer in the same state. The study goes on to note that only 18% of sellers bothered to collect sales tax at all (in-state or otherwise).
EBay may be a little concerned, which may explain why they are opposing the Main Street Fairness Act so forcefully. EBay has taken a position in the press that the requirements of the Main Street Fairness Act would impose a crushing burden on small businesses. This is very surprising coming from a company whose business model is to provide turnkey services that enable anyone to operate a storefront with very little effort. It is hard to believe that sales tax calculation is beyond the ability of eBay to provide.
Naturally, we would be happy to help eBay easily bring their sellers into compliance with all local sales tax laws, at absolutely zero cost to eBay or eBay’s sellers.