Current Developing Trend of Sales Tax on E-Business

2015 ◽  
Vol 11 (2) ◽  
pp. 60-73
Author(s):  
James G. S. Yang ◽  
Peter L. Lohrey ◽  
Leonard J. Lauricella
Keyword(s):  
State Government ◽  
The United States ◽  
United States Senate ◽  
Sales Tax ◽  
Internet Commerce ◽  
Business Operations ◽  
State Statutes ◽  
State Income Tax ◽  
Physical Presence ◽  
State Income

This article explores the development of sales tax on e-business. It points out that the problem was rooted in the fact that the seller is required to collect and remit the tax to the buyer's state government. If the seller and the buyer do not reside in the same state, the buyer's state government has no jurisdiction over the seller, unless there is a “physical presence” of the seller in the buyer's state. A state government can require an out-of-state seller to collect sales tax from the in-state buyer only when there is “physical presence.” However, what constitutes “physical presence” can become very controversial and complex. This article discusses many court cases. As Internet commerce was incorporated into the business operations, a great many transactions were executed online. The concept of “physical presence” became even more complex, as websites and digitized products became more commonplace. A new concept of “economic nexus” has evolved under many state statutes. Now an out-of-state seller may be required to collect sales tax from an in-state buyer, regardless of “physical presence.” In 2013 the United States Senate enacted the “Marketplace Fairness Act of 2013.” This embraced the concept of “economic nexus.” This legislation could potentially end or at least greatly simplify all controversies in e-business taxation. This paper further notes that the concept of “economic nexus” may be extended to the arena of state income tax.

What is New York’s Amazon Tax on Internet Commerce?

2012 ◽  
pp. 306-318
Author(s):  
James G.S. Yang
Keyword(s):  
New York ◽  
Web Site ◽  
New York State ◽  
The State ◽  
Sales Tax ◽  
Tax Law ◽  
Online Retailer ◽  
Internet Commerce ◽  
York State ◽  
Physical Presence

This paper examines internet commerce taxation. It concerns who is responsible for collecting sales tax - the seller or the buyer, which depends on nexus between the seller and the state. If there is a nexus, it is the seller’s responsibility; otherwise, it is the buyer’s duty. Nexus further depends on physical presence. However, in today’s e-business, the concept of physical presence has changed. Effective June 1, 2008, New York State enacted the so called “Amazon Tax Law” that an out-of-state online retailer is presumed to have nexus with New York State if it enters into a contract with an affiliate in the state to engage in soliciting businesses in the state by means of web site linkage for an annual gross receipts of more than $10,000. As such, the online retailer is required to collect sales tax from the in-state buyer. The concept of physical presence has been extended from employee or office to web site connection. This paper examines its impact.

What is New York’s Amazon Tax on Internet Commerce?

2011 ◽  
Vol 7 (4) ◽  
pp. 50-61
Author(s):  
James G.S. Yang
Keyword(s):  
New York ◽  
Web Site ◽  
New York State ◽  
The State ◽  
Sales Tax ◽  
Tax Law ◽  
Online Retailer ◽  
Internet Commerce ◽  
York State ◽  
Physical Presence

This paper examines internet commerce taxation. It concerns who is responsible for collecting sales tax - the seller or the buyer, which depends on nexus between the seller and the state. If there is a nexus, it is the seller’s responsibility; otherwise, it is the buyer’s duty. Nexus further depends on physical presence. However, in today’s e-business, the concept of physical presence has changed. Effective June 1, 2008, New York State enacted the so called “Amazon Tax Law” that an out-of-state online retailer is presumed to have nexus with New York State if it enters into a contract with an affiliate in the state to engage in soliciting businesses in the state by means of web site linkage for an annual gross receipts of more than $10,000. As such, the online retailer is required to collect sales tax from the in-state buyer. The concept of physical presence has been extended from employee or office to web site connection. This paper examines its impact.

Book Reviews

2012 ◽  
Vol 50 (4) ◽  
pp. 1122-1126
Keyword(s):  
Los Angeles ◽  
Income Tax ◽  
Global Economy ◽  
Tax Compliance ◽  
The United States ◽  
State Revenue ◽  
Revenue Collection ◽  
State Income Tax ◽  
State Income

Brian Erard of B. Erard and Associates reviews, “The Causes and Consequences of Income Tax Noncompliance” by Jeffrey A. Dubin. The EconLit Abstract of this book begins: “Presents an empirical analysis of the federal and state revenue collection process in the United States, focusing on the causes of taxpayer noncompliance. Discusses the tax gap; recent patterns in IRS enforcement, economic theory and the literature; the Dubin Graetz Wilde model; the data; IRS criminal enforcement activities and taxpayer noncompliance; IRS criminal investigation—measuring the marginal monetary effect of criminal investment convictions; extensions to the period 2002–04; and state income tax compliance. Dubin is Adjunct Professor of Economics and Statistics in Global Economy and Management at the Anderson School of Management, University of California, Los Angeles. Bibliography; no index.”

The Advantages and Disadvantages of Internet Commerce in China

2018 ◽  
pp. 278-290
Author(s):  
James G. S. Yang
Keyword(s):  
Value Added ◽  
The United States ◽  
Sales Tax ◽  
The Internet ◽  
Chinese Government ◽  
Internet Commerce ◽  
Tax Rate ◽  
Advantages And Disadvantages ◽  
A Value ◽  
Final Consumer

This chapter further considers the tax aspect of the internet commerce transaction, which found that the Chinese government imposes a value-added tax at a rate of 17%. The system to impose value-added is extremely complicated. The first buyer pays tax. The tax is transferred to the second buyer, so on and so forth until the last buyer. It requires detailed records. It makes the tax administration highly burdensome. On the contrary, in the United States, the sales tax rate is only 7% and is imposed only on the final consumer. There are no sales between the first buyer and the last buyer. The taxing system is much simpler than its counterpart in China.

The Principle of Nexus in E-Commerce Tax

2012 ◽  
Vol 8 (2) ◽  
pp. 33-48 ◽  
Author(s):  
James G.S. Yang
Keyword(s):  
The State ◽  
Sales Tax ◽  
The Internet ◽  
State Governments ◽  
Internet Commerce ◽  
Independent Contractor ◽  
Physical Presence ◽  
Financial Consequences

The volume of Internet commerce has become increasingly important in today’s economy. However, it has a sales tax problem, concerning whether the seller or the buyer should be responsible for collecting sales tax. This problem becomes more complicated when the Internet commerce crosses state borders; this situation has caused many lawsuits. Courts have ruled that an out-of-state seller is held responsible only when there is a “nexus” between the seller and the state. A place of business or employee is evidence of “physical presence” and thus constitutes “nexus.” An independent contractor is treated as employee. Website connection between two computers serving as an “affiliate” in soliciting business for a fee is deemed to have “nexus.” In recent years, many state governments enacted tax statutes that require an out-of-state seller to provide information about an in-state buyer’s name and address and product purchased. Unfortunately, it was ruled unconstitutional by the court. The seller can refuse the request without financial consequences.

scholarly journals The Financial Dilemma of Students Pursuing an Atmospheric Science Graduate Degree in the United States

2020 ◽  
Vol 101 (9) ◽  
pp. E1524-E1536
Author(s):  
Dylan R. Card ◽  
Heather S. Sussman ◽  
Ajay Raghavendra
Keyword(s):  
United States ◽  
Graduate Students ◽  
Income Tax ◽  
Graduate Programs ◽  
Atmospheric Science ◽  
The United States ◽  
Cost Of Living ◽  
Housing Costs ◽  
State Income Tax ◽  
State Income

Abstract Graduate school provides an opportunity for students to enhance their knowledge and skill sets and to develop the qualifications to seek high-skilled employment. However, many graduate students are plagued with personal and financial stressors that can decrease research productivity and professional growth. With ballooning student loan debt and economic inflation, stakeholders should review the financial well-being of our current and future graduate students with greater frequency to ensure the continued fast-paced advancement of science. This study investigated the annual stipend, university fees, housing costs, cost of living, and the state income tax rate of 39 atmospheric science graduate programs in the United States to determine the effective income for first-year graduate students in the 2020–21 academic year. Results showed a large spread in advertised stipend amounts ranging between $19,139 and $41,520 (USD). After taking into account annual university fees, housing costs, and state income tax and normalizing by the cost of living, effective income had a decreased spread ranging between $12,287 and $25,240. Prospective graduate students should not focus on the advertised stipend when deciding between schools since it does not always accurately represent the affordability of the graduate program. The future of scientific research relies on the next generation of scientists. Therefore, graduate programs across the country should focus on providing fair financial compensation in order to attract students with exceptional research skills who otherwise may leave academia to pursue higher-paying jobs after college.

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