eBay Urges Users to Join Tax Fight

SAN JOSE, Calif. (TheStreet) -- eBay (EBAY) is attempting to get its users to join a campaign to fight pending federal sales tax legislation.

The company's CEO, John Donahoe, began emailing users Sunday morning, telling them the Marketplace Fairness Act would burden small online merchants, Reuters reported.

On Twitter, eBay's government relations department was delivering a similar message, with one tweet saying: "Do you think #SmallBiz owners should be forced to act as tax collectors in all states? Neither do we."

Another tweet said that the online marketplace company believes businesses with fewer than 50 employees or less than $10 million in annual out-of-state sales should be exempt from the legislation.

And on a government relations Web page, eBay urges users to ask their legislators to exempt such businesses.

The legislation is expected to go up for a Senate vote in coming days and would allow states to make retailers outside their borders collect online sales tax, Reuters noted. Retailers who receive less than $1 million in annual out-of-state revenue would be exempt.

eBay contends that smaller merchants would be hit unfairly hard by such a threshold.

Shares of eBay closed Friday down 43 cents at $52.39.

This article was written by a staff member of TheStreet.

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