The taxation of Internet sales

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Controversy surrounds the taxation of Internet sales. Among the chief concerns is equity, economic efficiency and administrative feasibility. An internet sales tax is a sales and use tax collected and remitted on remote sales, many done online. In 2018, the U.S. Supreme Court ruled that states could impose such obligations on sellers lacking physical presence in the state, vastly expanding the reach of these collection and remittance requirements.

 

  • What are the equity issues involved in including Internet sales in the general sales tax base?
  • What are the issues in economic neutrality raised in taxing Internet sales?