So how is that much different than right now... As of now, the person who buys the stuff is supposed to claim it on their state tax returns, now it just shifts to the seller
And how will the states know if a company does sell to someone in their state unless ebay is giving out private info
Same way they do right now with Brick and Mortar retailers. Through the ability of the individual Departments of Revenue to audit. The power of the audit gives them the ability to examine the internal records of those businesses operating within the individual states. The threat of audit forces individual businesses to keep accurate records or face the potential for significant penalties and interest on uncollected taxes. Admittedly, I'm not sure how said states will go about conducting an audit outside of their borders, but I'm fairly sure that this bill does not give enforcement authority to the Federal Government, rather it seeks to expand the authority of the States.
ETA: The real question for me is what would the states do with that expanded authority. I would imagine it might be easy for a smaller fish to skirt by undetected. With an exemption given at < $1,000,000, depending upon the items being sold, there will already be a lot of businesses who won't be forced to collect and remit.
This post was edited on 5/6 at 3:54 pm