Title: The impact of e-taxation policy on state and local government revenue

Authors: Adnan Omar, M. Khurrum S. Bhutta, Terrance Sanchez

Addresses: Department of Management Information Systems, College of Business and Public Administration, Southern University at New Orleans, 6801 Press Drive, New Orleans, LA 70126, USA. ' Department of Management Systems, College Of Business, Copeland Hall, Ohio University, Athens, Ohio 45701, USA. ' Department of Management Information Systems, Southern University at New Orleans, 6801 Press Drive, New Orleans, LA 70126, USA

Abstract: The tax-free status of most items purchased online has resulted in significant loss of tax revenues to state and local government. Our research indicated that the loss of taxes amounting to $13.3 billion in 2001 will rise to $62.1 billion by 2011, unless taxation policies are changed. Changing the tax laws governing online trading is problematic. One significant aspect concerns the one who collects the revenues: should the taxes on items purchased online be collected by the state and local government, as is now done in traditional brick-and-mortar trades, or should this be done by a concerted, standardised federal effort?

Keywords: e-government; e-commerce; revenue loss; sales tax; linear regression; forecasting; e-taxation; electronic government; electronic taxation; online taxation; electronic commerce; state government revenue; local government revenue; tax laws; online purchases.

DOI: 10.1504/EG.2009.027784

Electronic Government, an International Journal, 2009 Vol.6 No.4, pp.378 - 390

Published online: 11 Aug 2009 *

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