Internet Taxation

Wikipedia Definition & Overview – Internet taxes
From the inception of the Internet until the late 1990s, the Internet was free of regulation by government in the United States at all levels, and also free of any specially targeted tax levies, duties, imposts, or license fees. By 1996, however, that began to change, as several U.S. states and municipalities began to see Internet services as a potential source of tax revenue.

Internet Tax Freedom Act – Wikipedia
The 1998 Internet Tax Freedom Act was signed into law on October 1998. This law bars federal, state and local government from taxing Internet access and from imposing discriminatory Internet-only taxes. The most recent extension was titles the Internet Tax Freedom Act Amendment Act of 2007, signed into to law on November 2007 by George W. Bush and extended the moratorium until November 2014.


A Policymaker’s Guide to Internet Tax
This guide explains the state of current law and how policymakers should approach taxing online, digital activity. This report focuses on four particular areas: the Internet tax moratorium, multiple and discriminatory taxes of digital goods, discriminatory taxes on wireless services, and the collection of sales taxes for online purchases of products.
Provides an in-depth analysis of the debate over Internet taxation, complete with a detailed background of the issues.

Daniel J. Mitchell on Internet Taxation
State officials have spent the last 15 years attempting to devise a regime so they can force out-of-state vendors to collect sales taxes, but the Supreme Court has ruled that such a cartel is not permissible without congressional approval.

E-Commerce Taxation Links
This page includes background papers on electronic-commerce taxation (also known as Internet Taxation) issues, statistics, work being done on the issues by various groups, and several points to consider in examining how various tax rules should (or should not) apply to e-commerce.

Get Ready to Pay More Online: Supremes Refuse to Hear Internet Tax Case
The Supreme Court declined to hear a case by Amazon and challenging a law that requires online retailers to collect sales tax in states where they have no physical presence. The Supreme Court refusal to hear the case will allow state governments to tax online retailers and turn online retailers into de facto tax collection agencies.

Internet Sales Tax: A 50-State Guide to State Laws
Learn the rules for every state about paying sales tax on Internet sales.

Overview of Internet Taxation Issues
Widespread use of the Internet and its use for many different types of business and personal transactions raise a variety of tax issues for taxpayers, practitioners, legislators, and tax agencies. Despite the prevalence of Internet use for business transactions for well over a decade, Internet and web-based transactions and assets continue to challenge tax rules that have not been updated for a world where borders and tangible goods are not the focal points.

State Taxation of Internet Transactions
Under current law, states cannot reach beyond their borders and compel out-of-state Internet vendors (those without nexus in the buyer’s state) to collect the use tax owed by state residents and businesses.

Streamlined Sales Tax Project
A voluntary national endeavor to develop measures to design, test and implement a sales and use tax system that radically simplifies sales and use taxes. Arguably fundamental to any attempt to tax Internet purchases.

YouTube Video: Internet Taxation
National League of Cities video in support of Internet taxation.


Audio and Video

Government to Impose Internet Tax
This article illustrates Obama administration’s intention create a framework for taxing internet goods and services.