CEO and President Mike Faith of Headsets.com checks his inventory in his offices in San Francisco. Headsets.com, might have to hire two staffers to handle the administrative work if what's called remote tax collection becomes law, Faith said. The company has operations in California and Tennessee, but sells to all 50 states. Currently, federal law only requires the company to collect tax in those two states.
CEO and President Mike Faith of Headsets.com poses by a display of headsets in his offices in San Francisco.
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Small business owners may be closer to losing an advantage they've enjoyed during the e-commerce boom — being exempt from collecting sales tax in states where they're not located. And they're worried they will have to spend more money in the process. Washington lawmakers currently have several bills in the works that would force companies to collect the tax. Businesses are split over the issue.