The Impact of the Amazon Tax on Local Sales Tax Revenue in Urban and Rural Jurisdictions

23 Pages Posted: 3 Jun 2020

See all articles by Whitney Afonso

Whitney Afonso

University of North Carolina (UNC) at Chapel Hill - School of Government; University of Georgia - Department of Public Administration and Policy

Date Written: Summer 2019

Abstract

E‐commerce has become an integral part of Americans’ lives and while it offers many benefits, it also represents forgone sales tax revenue for governments. Using a difference‐in‐differences model, this analysis examines how the Amazon tax affected local sales tax collections in North Carolina and whether that impact has been greater for urban, rural, or tourism‐rich counties. The results suggest that the Amazon tax increased revenues and urban jurisdictions benefit most. This finding is important for practitioners and policymakers as they consider the impact of policy changes, such as the South Dakota v. Wayfair ruling, on revenue capacity and financial management.

Suggested Citation

Afonso, Whitney, The Impact of the Amazon Tax on Local Sales Tax Revenue in Urban and Rural Jurisdictions (Summer 2019). Public Budgeting & Finance, Vol. 39, Issue 2, pp. 68-90, 2019, Available at SSRN: https://ssrn.com/abstract=3616251 or http://dx.doi.org/10.1111/pbaf.12215

Whitney Afonso (Contact Author)

University of North Carolina (UNC) at Chapel Hill - School of Government ( email )

NC
United States

University of Georgia - Department of Public Administration and Policy ( email )

Athens, GA 30602
United States

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