Last week eBay seller Larry McGill and eBay Inc. Government Relations staff met with Congressman Lamar Smith and his District Director in the Congressman’s district office in San Antonio to discuss the Marketplace Fairness Act and its impact on small businesses selling over the Internet.  The Congressman was gracious enough to give Mr. McGill an opportunity to discuss the Act and the need for through and thoughtful evaluation before the Act is brought to the House floor.  Mr. McGill mentioned how the bill, in its current form, would create a strong inducement to keep his sales below $1 million for the year so as not to expose himself to the significant costs, risks and burdens associated with being subject to audits in the various states with a sales tax in which he has no physical presence.  The Congressman seemed to understand Mr. McGill’s concerns and confirmed that he too had some reservations about the Act as currently drafted.  Congressman Smith confirmed that the House Judiciary Chairman, Congressman Bob Goodlatte, would be doing a top-down assessment of the measure before moving it out of Committee. 

While the Marketplace Fairness Act’s momentum has slowed significantly since moving from the Senate to the House, it is by no means a dead issue for the year.  eBay Inc. Government Relations staff will continue to monitor the bill and to meet with members of the House so they truly understand the bill’s impact on small sellers throughout the country.