5 Pages Posted: 16 Mar 2013
Date Written: March 15, 2013
In this essay, we evaluate recent legislative proposals for Congress to authorize state taxation of e-commerce. We argue that these proposals contain a potential game-changing innovation — the requirement that states provide remote sellers with “adequate software” for calculating use tax due within the state. Properly implemented, we explain how this innovation could force states to internalize the compliance costs of levying tax collection obligations on remote sellers, thereby incentivizing the states to simplify their sales and use tax statutes and resolving concerns about states overburdening interstate commerce.
Keywords: e-commerce, internet commerce, sales tax, Quill
Suggested Citation: Suggested Citation
Haile, Andrew J. and Gamage, David and Shanske, Darien, A Potential Game Changer in E-Commerce Taxation (March 15, 2013). State Tax Notes, Vol. 67, No. 10, 2013; UC Berkeley Public Law Research Paper No. 2233751. Available at SSRN: https://ssrn.com/abstract=2233751