Tax sensitivity in electronic commerce

Resource Information

The work Tax sensitivity in electronic commerce represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Tax sensitivity in electronic commerce

Creator

• Scanlan, M.A

Subject

• e-commerce
• sales tax
• tax rate
• use tax

Language

eng

Summary

Empirical research into the impact of taxation on e-commerce has concluded that there is a significant positive relationship between local sales tax rates and the likelihood that a person will shop online. This paper finds that the tax sensitivity for online purchases at the local level is much lower than previously estimated and is not significant under previous general models. However, by using a splined tax-rate function, this paper finds that consumers living in counties with high sales tax rates are still sensitive to tax rates when deciding whether to shop online, while those in counties with low tax rates exhibit no significant sensitivity

Citation source

In: Fiscal studies. - London. - Vol. 28 (2007),

Geographic coverage

North America

Language note

English