Tax, Compliance, Corporate Law


As e-commerce becomes more prevalent, states increasingly struggled to collect use taxes. Residents who purchase products online are subject to the use tax; however, they rarely report the use tax they owe because many are unaware that such a tax exists. States are constitutionally unable to impose use tax collection duties on many online retailers, because there must be a substantial physical nexus between the state and the retailer to do so. This Note considers the current practices that states employ in use tax collection, and examines the three different methods that purportedly allow for states to impose use tax collection duties on online retailers, even without a substantial physical nexus. This Note proposes that states should continue to utilize the tools and practices available to them in a more efficient way for use tax collection rather than create a new tax scheme as the three methods propose.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.