Internet Sales Taxes and the Discriminatory Burden on Remote Retailers An Economic Analysis

Applying the Regulatory Powers of Public Health

The Journal of Law Medicine & Ethics ◽

10.1111/j.1748-720x.2003.tb00757.x ◽

2003 ◽

Vol 31 (S4) ◽

pp. 68-69 ◽

Cited By ~ 1

Author(s):

Angela Z. Monson ◽

Jake Pauls ◽

Michelle Leverett

Keyword(s):

Public Health ◽

Tax Policy ◽

Sales Tax ◽

The Internet ◽

Grocery Stores ◽

Sales Taxes ◽

Tobacco Sales ◽

Convenience Stores ◽

Internet Sales ◽

Regulatory Powers

The advent of sales over the Internet has led to interesting developments in sales tax policy as states attempt to monitor, control, and collect revenue from illusive Internet tobacco vendors. Tobacco sales have been successfully monitored and regulated, to some extent, in convenience stores, grocery stores, and smoke shops, and in most cases sales taxes are collected. The Internet, however, is extremely difficult to regulate. States could use their regulatory powers to ban the sale of products such as tobacco and alcohol over the Internet, but enforcement would be nearly impossible.The issue of enforcement of Internet sales is extremely difficult. Keeping the products out of the wrong hands, under aged children for example, is difficult. Also, it is difficult in terms of tax policy.

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The Economic Organization of the Nicotine, Heroin and other Drug Industries

Journal of Drug Issues ◽

10.1177/002204267300300307 ◽

1973 ◽

Vol 3 (3) ◽

pp. 231-239 ◽

Cited By ~ 1

Author(s):

Richard F. Sullivan

Keyword(s):

Law Enforcement ◽

Social Policy ◽

Economic Analysis ◽

Illegal Drug ◽

Economic Organization ◽

Demand And Supply ◽

Total Spending ◽

Sales Taxes ◽

Inelastic Demand ◽

Organizing Principles

The tools of economic analysis can be applied to the buying and selling of any illegal commodity and they may be able to highlight some errors in social policy. In this article the demand and supply conditions of three illegal drug industries are analyzed, as well as the organizing principles of the industries, the degree of monopoly or of competition, and the principal sales techniques. The fact of addiction leads to a condition known as price-inelastic demand for heroin and nicotine, but not for marijuana, which is non-addictive. This means that total spending will increase as sales decrease when price rises. Price rises due to high sales taxes have created a flourishing criminal nicotine industry and price rises due to vigorous law enforcement have created the conditions for criminal monopolies in the heroin industries. Moreover, both nicotine and heroin sellers have used similar merchandising techniques because of the nature of the addiction involved. The demand conditions also make a policy of vigorous enforcement of the laws against marijuana, leading to an increase in the price of marijuana, a potentially dangerous social policy.

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What Is Important When Shopping Online?

Review of Business Information Systems (RBIS) ◽

10.19030/rbis.v15i1.3995 ◽

2011 ◽

Vol 15 (1) ◽

Author(s):

Kaye McKinzie ◽

Ken Griffin ◽

Pat Cantrell ◽

Vicky Chen

Keyword(s):

Online Shopping ◽

Sales Tax ◽

Online Transactions ◽

Sales Taxes ◽

Online Retailers ◽

Physical Presence ◽

Internet Sales ◽

Potential Impact ◽

State And Local

Shoppers have many avenues on where to purchase products, one of which is online. Many online retailers do not apply state and local sales taxes on products they sell, thus allowing them to sell their products cheaper than can be found at local retailers. If the physical presence nexus rule is altered and Internet sales tax is applied for all online transactions, it could potentially change online shopping. The results of a survey of 154 persons are presented, discussing the potential impact of the changing of the physical presence nexus rule and requiring Internet sales tax.

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