A Study in Use Tax Design

Abstract:     
State and local governments employ differing approaches to taxing consumers on out-of-state purchases. In response Conroy and Tower have created a broad based model that analyzes and evaluates a tax system’s ability to maximize collections. Although their paradigm builds on widely accepted design theories it also relies on information drawn from current practice. Their research findings highlight the influence that various reporting mechanisms have on the effectiveness of consumer use tax programs. The results underscore the model’s value as analytical tool. But as the authors point out, a far more significant contribution could be to add much needed structure to study and discourse on tax design.

Keywords: use tax, design, SSUTA

JEL Classifications: E62, H21

Accepted Paper Series