Open Access. Powered by Scholars. Published by Universities.®

Social and Behavioral Sciences Commons

Open Access. Powered by Scholars. Published by Universities.®

2012

Business

Kennesaw State University

Online commerce

Articles 1 - 1 of 1

Full-Text Articles in Social and Behavioral Sciences

Does Online Cross-Border Shopping Affect State Use Tax Liabilities?, Mikhail I. Melnik, James Alms Jun 2012

Does Online Cross-Border Shopping Affect State Use Tax Liabilities?, Mikhail I. Melnik, James Alms

Faculty Publications

How does online cross-border shopping affect state use tax liabilities? We collect our own data on actual online cross-border shopping transactions from eBay.com, focusing upon a “representative” commodity classification and a “typical” day. These data allow us to examine the extent of actual online crossborder shopping by buyers, and the subsequent potential impact on state use tax liabilities of buyers. Our results indicate that online cross-border shopping is highly prevalent on eBay, with out-of-state purchases accounting for on average 94 percent of the volume of a state’s online purchase transactions. Even so, given the limited volume of eBay-based ...