Feeds

E-taxes aren't really stuffing Uncle Sam's pockets enough

Internet sales tax proves less lucrative than predicted

The essential guide to IT transformation

Some US states have started collecting the first tranche of internet sales taxes, but it's a lot less than studies were anticipating.

A number of states fought to get a sales tax on internet commerce, saying that the advantages enjoyed by etailers like Amazon not paying the man over bricks-and-mortars shops was unfair. Of course, the fact that federal coffers have been a bit light since the global economic recession and raising taxes on people is pretty unpopular may have had something to do with it.

When campaigners were working towards the new tax law, a University of Tennessee study estimated that the US would lose $11.4bn in 2012 if it didn't start to collect internet taxes. California's share of that was estimated at as much as $1.9bn.

But the state has only taken $96.4m in the September to December quarter last year, its first full quarter of collections, Reuters reported. That result puts California well on its way to its own target of $107m in e-taxes for a year from July 1, but far short of the nearly two billion a year the study expected.

Other states have also used estimates like UoT's to get new tax laws passed, but they're also using similar figures in their state budgets. New York, where Amazon and Overstock.com are fighting the local internet tax law, can expect $360m in sales tax as of this month, according to the State Department of Taxation and Finance, far less than the $2.5bn the study forecast for the same period.

Study leader Professor William Fox said that the shortfall in the estimates could be due to the fact that smaller etailers are exempt from the tax. He also pointed out that sales tax collections have lagged economic growth, suggesting that untaxed commerce has grown. ®

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.