The Impact of the Internet Tax Freedom Act on State Revenues

摘要

The Internet Tax Freedom Act, passed by the U.S.rnCongress, is both a result of and a potentially importantrninfluence on the growth of electronic commerce. Thisrnpaper examines the impact of the moratorium imposed byrnthe legislation prohibiting the collection of taxes onrnInternet commerce. Its significance with respect tornbusiness-to-business and business-to-consumer commercernis documented by analysis of current sales activities.rnThe paper also explores the potential impact on arnvariety of sales categories if the moratorium is extendedrnbeyond the current three-year period of effect. Therndiscussion illustrates how continuing the force of thernlegislation will have an increasingly significant effect onrnboth states, which depend on sales tax revenue, andrnparticipants in Internet commerce.