Number: RL31252
Title: State and Local and Use Taxes and Internet Commerce
Authors: Steven Maguire, Government and Finance Division 
Abstract: Because of the low compliance, many observers suggest that the expansion of the internet as a means of transacting business across state lines threatens to diminish the ability of state and local governments to collect sales and use taxes. Congress has a role in this issue because commerce between parties in different states conducted over the internet falls under the Commerce Clause of the Constitution. Congress can either take an active or passive role in the internet tax debate. This report helps clarify important issues in the internet tax debate.
Pages: 13
Date: January 28, 2005