Brian Hawthorne

Document Type

Perspective

Publication Title

Emory Corp. Governance & Accountability Rev. Perspectives

Publication Date

1-1-2016

Abstract

Many states are increasing pressure on Congress to regulate online businesses. Since online businesses do not have an in-state 'physical presence,' they are not subjected to collecting state sales and use taxes. Many states believe that these tax-breaks allow out-of-state sellers to 'take advantage of the local customer base' without adding to the states' sales or use tax base. Additionally, many 'brick and mortar' stores view the tax-breaks given to online businesses as 'unfair price advantages.' There have been several Congressional responses to the states' plea for market fairness. These include: (1) the Market Place Fairness Act; (2) The Remote Transactions Parity Act; (3) The No Regulation Without Representation Act; and (4) the Online Sales Simplification Act. However, this perspective proposes that states create notice and reporting procedures for online businesses that allow states to collect sales and use taxes from their citizens without requiring online businesses to do so.

First Page

1025

Volume

4

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