Here is an interesting article from IDG.net about the effect of e-commerce on tax supported entities, such as the public library and the schools.
\”New figures showing roaring online retail sales spell trouble ahead for the sales tax revenues that help fund vital local services like police, firefighters, and school teachers, advocates for U.S. state and local governments say.\”
Here is an interesting article from IDG.net about the effect of e-commerce on tax supported entities, such as the public library and the schools.
\”New figures showing roaring online retail sales spell trouble ahead for the sales tax revenues that help fund vital local services like police, firefighters, and school teachers, advocates for U.S. state and local governments say.\”
\”The U.S. Commerce Department says electronic commerce sales grew 15.3 percent in the third quarter from the second quarter to $6.373 billion, while total retail sales fell by 0.4 percent. The Internet sales figures exclude online travel, financial, and ticket sales services.\”
\”Legal loopholes and the nation\’s complicated patchwork of sales tax jurisdictions mean state and local governments find it difficult to collect taxes on so-called \”remote sales\” from catalogs and Web sites. (See \”Is Tax-Free Shopping Doomed?\”
\”During the third quarter, overall sales were actually down, so these sales were coming at the expense of mainstream vendors, and they\’re coming at the expense of important public programs,\” says Frank Shafroth, director of state and federal relations at the National Governors\’ Association.\”
\”Shafroth cites a study showing states would sacrifice a total $13 billion in sales taxes by the year 2004.\”
\”That\’s a lot of policemen and firemen and teachers and classrooms,\” Shafroth adds.\”
\”E-tailer Yahoo reports business doubled the day after Thanksgiving, the biggest shopping day of the year, from year-ago volume.\”
\”Overall online holiday sales are expected to double to $19.5 billion worldwide this year from a year ago, according to one report. Some analysts estimate that 10 million people will shop online for toys alone during the month of December.\”
\”The concern grows as each year passes and the volume of sales over the Internet increases,\” said Larry Naake, head of the National Association of Counties.\”
\”Naake said sales tax receipts made up 14 percent of his members\’ revenues. He said only five states without any sales tax are unaffected by the explosion in Internet commerce. (See \”California Makes a Taxing Proposition.\”
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