Taxing Internet Sales

question 33

Multiple Choice

Taxing Internet sales

• A)remains insignificant to most states because it is too complicated for the stores to keep track of all 50 state laws on sales taxes. Sales on the Internet have been declining significantly in recent years.
• B)would generate close to $5 billion a year of additional sales tax revenues through online catalogue sales and perhaps $23 billion from Internet sales overall.
• C)has been a significant source of revenue since 1998 for forty-six states after the U.S. Supreme Court allowed North Dakota to become the first state to impose a tax on Internet sales.
• D)may never be a source of revenue for the states because the U.S. Congress passed a law that forbids state and local government from ever imposing a tax on sales transactions that occur on the Internet.

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