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State Sales Taxation of Internet Transactions (CRS Report for Congress)

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Release Date Jan. 10, 2001
Report Number RS20577
Report Type Report
Authors John Luckey, American Law Division
Source Agency Congressional Research Service
Summary:

This report examines two common misconceptions in the area of state taxation of Internet transactions. These misconceptions are: (1) the Internet Tax Freedom Act of 1998 placed a moratorium on a state's power to impose a sales tax on sales that are accomplished via the Internet; and (2) states may not tax transactions where the seller is located outside of the state and has no real connection to the state.