Taxation-State and Local Commons^™

Desperate Times Call For Desperate Measures: States Lead Misguided Offensive To Enforce Sales Tax Against Online Retailers, Ricky Hutchens

Vanderbilt Law Review

It is a near universal experience. An individual wants to purchase an item. He shops around to find the best price. After a diligent search, he realizes that if he makes the purchase online, he can avoid being charged sales tax on the item. Depending on the price of the item and the tax rate, the savings can be substantial- sometimes enough to justify paying for shipping. But many consumers fail to consider another consequence: choosing an online retailer effectively denies tax revenue to a buyer's home state. In the United States, state governments have three basic options for generating …