Do eBay Sellers Comply with State Sales Taxes?
AbstractThe rapid growth in online commerce has harmed state sales tax bases. However, the extent of this base reduction is difficult to estimate. In this paper we collect our own data from eBay.com on a "representative" commodity classification and a "typical" day. Our data consist of nearly twenty-one thousand eBay listings generated by over seven thousand individual sellers with over ninety-three hundred buyers. We find that overall eBay seller compliance is quite low but that compliance by established sellers is significantly higher. Given that established sellers account for the bulk of online commerce, the estimated revenue loss from eBay seller noncompliance may be relatively small.
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Bibliographic InfoPaper provided by Tulane University, Department of Economics in its series Working Papers with number 1106.
Length: 33 pages
Date of creation: Apr 2011
Date of revision:
online commerce; sales taxes; nexus; tax evasion;
Other versions of this item:
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
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- James Alm & Keith Finlay, 2013.
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- James Alm & Mikhail I. Melnik, 2012. "Does Online Cross-border Shopping Affect State Use Tax Liabilities?," Working Papers 1206, Tulane University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Finlay).
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