The Internet Sales Tax Is Back—Without Small Business Exemptions

Goodlatte at a town hall meeting Douglas Graham/CQ Roll Call via Getty Images

When the Senate passed the Marketplace Fairness Act in May, a major point of contention was language exempting some small businesses from collecting sales tax on out-of-state transactions. The law said businesses with more than $1 million in annual revenue would have to collect tax for online transactions. EBay, a vocal opponent of the bill, suggested raising the exemption to $10 million. (The company later offered a more nuanced view.)

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