Many Internet sellers are not required to collect sales tax on their Internet sales if they have no physical nexus in the state. Instead, the end-user is required to pay use tax on such items, but the compliance rate is low. as such, states are losing large sums of revenue, and would like to have the seller collect the tax and remit it to the state. Currently, the Commerce Clause, as interpreted by the Supreme Court, prohibits states from requiring remote sellers to collect the tax. Congress is loath to interfere, as doing so may require business to file thousands of sales and use tax returns each month. in response, states have joined together in the Streamlined Sales Tax Project to reduce the administrative burden on businesses, in hopes that Congress will require the remote sellers to collect and remit the tax to them.
BruceDonald and William F. Fox. 2000. “E-commerce in the context of declining state sales tax bases.” National Tax Journal, December 2000, 1373.
4.
BruceDonald and William F. Fox. 2001 “State and Local Sales Tax Revenue Losses From E-Commerce: Updated Estimates.” State Tax Notes 22(3)203–214, October 15, 2001.
5.
Burger King Corp. v. Rudzewicz, 105 S. Ct. 2174 (1985).
The Guide to American Law: Everyone's Legal Encyclopedia. West Publishing Co., 1983, vol 3 and 4. St. Paul MN.
15.
Illinois Revenue Statutes.
16.
International She Co. v. Washington, 66 S. Ct. 154 (1945).
17.
Internet Tax Freedom Act.The UCLA Online Institute for Cyberspace Law and Policy. www.gseis. ucla. edu/iclp/itfa.htm. November 5, 1998.
18.
LavIris J. and NicholasJohnson2003. “State Budget Deficits for Fiscal Year 2004 Are Huge and Growing.” Centeron Budget and Policy Priorities.www.cbpp.org/12-23-02sfp.htm. January 23, 2003.
19.
Miller Bros. Co. v. Maryland, 347 US 340
20.
Moorman Mfg. Co. v. Bair, 98 S. Ct. 2340 (1978)
21.
National Bella Hess, Inc. v. Department of Revenue of the State of Illinois, 87 S. Ct.1389.
SchippersEric2003. “Internet Sales Tax.” CSPAN. March 1, 2003.
29.
Special Subcommittee on State Taxation of Interstate Commerce of the House Committee on the Judiciary, H.R. Rep. No. 565, 89th Congress, 1st Session, 631–635 (1965).
