I don't like it, but I can live with Ebay collecting, and dispersing taxes. But how do I know other online places are actually forwarding the collected taxes to the correct state? When I lived in Pa, a sporting goods store was caught collecting tax on non taxed items, and not forwarding it to the state. States can audit stores, and hopefully catch such scams, But they have no way to audit online stores. I know I am a skeptic, but I see more fraud will happen, then taxes actually forwarded.
I also wonder how Ebay categorizes and collects the right tax. Its a mess for retail stores dealing with one tax. Unless they changed it, Pennsylvania taxed clothing used for sporting (hunting cloths, team stuff, golf shoes, ect), but not clothing for everyday use. So we were supposed to ask the costumer what they were going to use the camouflage shirt they are purchasing for, and ring it up accordingly. The store accountant raised a red flag, when the receipts were showing no cloths sold for sporting use. Similar thing for food. Then you have the farmers, and businesses that have tax ID numbers. And do not pay tax for certain items. I know it is because of the Supreme court ruling, but I think it will not be as simple as the court thinks. Every online store will have to update their sales programs to track whats taxable, and whats not for each state, and also which costumers fall under the tax exempt categories.