eBay Files Supreme Court Amicus Brief on Internet Sales Tax

Apr 16, 2018 9:05 AM ET
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Brief urges the Court to consider the consequences of taxing independent small businesses in states where they do not have facilities, employees or a voice in the local political process.

This month the United States Supreme Court will hear arguments in South Dakota v. Wayfair, Overstock and Newegg.  Today, eBay, along with independent small businesses that sell on the eBay platform from each of the 50 states filed an amicus brief in support of the respondents.  At issue in the case is South Dakota’s extraordinary request that the Supreme Court overrule its prior decision in Quill Corp. v. North Dakota, which maintains that a state can impose sales tax collection obligations only on sellers with an in-state physical presence.  Should the Quill decision be overturned, it will greatly undermine the growth opportunities available to the hundreds of thousands (if not millions) of independent small businesses that sell online and represent a vital segment of the national economy.  

eBay believes the Internet is critical for independent small businesses to stay competitive and grow; to expand their reach beyond local markets, and to be found by customers anywhere in the world. We urge the high court to consider the consequences to the American economy and to uphold Quill’s rule, established more than 25 years ago, that independent small businesses cannot be taxed in a state where they do not have facilities, employees or a voice in the local political process.   

eBay’s amicus brief, which can be found here, details its arguments in support of independent small businesses and explains why a reversal of the Quill decision would be detrimental to American business and the American economy.