State and Local Sales and Use Taxes and Internet Commerce

Description:

In theory, state sales and use taxes are based on the destination principle, which prescribes that taxes should be paid where the consumption takes place. States are concerned because they anticipate gradually losing more tax revenue as the growth of Internet commerce allows more residents to buy products from vendors located out-of-state and evade use taxes. The size of the revenue loss from Internet commerce and subsequent tax evasion is uncertain. Congress is involved in this issue because commerce conducted by parties in different states over the Internet falls under the Commerce Clause of the Constitution. The degree of congressional involvement is an open question.

Creator(s): Maguire, Steven
Location(s): United States
Creation Date: March 9, 2006
Partner(s):
UNT Libraries Government Documents Department
Collection(s):
Congressional Research Service Reports
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Total Uses: 53
Past 30 days: 2
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Creator (Author):
Maguire, Steven

Economist; Government and Finance Division

Publisher Info:
Place of Publication: Washington D.C.
Date(s):
  • Creation: March 9, 2006
  • Digitized: July 17, 2006
Coverage:
Place
United States
Description:

In theory, state sales and use taxes are based on the destination principle, which prescribes that taxes should be paid where the consumption takes place. States are concerned because they anticipate gradually losing more tax revenue as the growth of Internet commerce allows more residents to buy products from vendors located out-of-state and evade use taxes. The size of the revenue loss from Internet commerce and subsequent tax evasion is uncertain. Congress is involved in this issue because commerce conducted by parties in different states over the Internet falls under the Commerce Clause of the Constitution. The degree of congressional involvement is an open question.

Language(s):
Subject(s):
Partner:
UNT Libraries Government Documents Department
Collection:
Congressional Research Service Reports
Identifier:
Resource Type: Report
Format: Text