Multi-State Taxation of Interstate Sales

Sales and Use Taxation of Internet Sales

From Amazon.com to Zfurniture.com, the e-commerce industry is booming. Ecommerce, generally defined as transactions that involve the exchange of goods and services by electronic means [1] , is most commonly transacted via the Internet, a worldwide network of computers and other communications equipment linked by high-speed data lines and wireless systems. [2] The Internet and the World Wide Web...

On the Effectiveness of Single Sales Factors for State Taxation

This study models and empirically tests the impact on local employment from switching to a single sales factor (SSF) formula for state corporate income tax purposes. The study first models the optimal location choice decisions of a firm in response to differential state income apportionment rules while controlling for different tax structures. The model is then tested in five states which recen...

Common state mechanisms regulating tribal tobacco taxation and sales, the USA, 2015

BACKGROUND Native American tribes, as sovereign nations, are exempt from state tobacco excise taxation, and self-govern on-reservation activity in the USA. Under Federal law, state excise taxes are owed by non-members purchasing tobacco on tribal land, but states are limited in how they enforce or collect these taxes. This study highlights the various policy approaches that states have taken to...

Should Sales Taxes Be Imposed on E-commerce?

We study the impact of E-commerce across state lines in the United States on tax revenue, public good provision, and real income. In particular, in light of the unenforceable nature of interstate taxation, we evaluate the potential gains from coordinating sales and income state taxes among sovereign jurisdictions. We find that the revenue at risk is small and that the welfare gains or losses of...

Optimal Taxation without State-Contingent Debt