Big Government - California Democrats continue to pursue constitutionally dubious bills aimed at forcing online-only retailers with no physical presence in the state to collect and remit sales tax.
However, having realized that this type of legislation could cause remote sellers to flee California-based eBay, it appears that one of the bill’s authors, Assemblywoman Nancy Skinner, is discussing tweaks to her legislation to lessen the impact it has. From professional site Tax Analysts (subscription required):
“Yes, I’ve met with eBay quite a lot,” said Assembly member Nancy Skinner (D), who introduced the bill. Skinner told Tax Analysts that eBay is concerned about the proposal’s impact on lower-volume sellers, and the two sides have discussed raising the $10,000 threshold.
Internet auction giant eBay Inc. is negotiating language in a proposed California “Amazon” law (AB 153) in hopes of reducing the number of its sellers that could be required to collect sales taxes.
The click-through nexus legislation would require remote sellers to collect state sales taxes if they make $10,000 or more in annual sales through California affiliates that receive a commission. Much of the attention has centered on Amazon.com, but eBay — a California-based company — also receives commissions from its sellers, who could then be required to remit California sales taxes. Read More
