Streamlined Sales Tax: An Update For Small Businesses

ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
Dwayne McSwain PhD, Associate Professor (Creator)
Appalachian State University (ASU )
Web Site:

Abstract: Small businesses and local governments are concerned about a proposal that will result in a massive change for sales tax collections. The Streamlined Sales and Use Tax proposal advocates use of destination sourcing for remote tax collections. The tax revenue will enhance the coffers of the states where the product is delivered, rather than where the sale takes place or where the buyer resides. The primary concern for state and local governments is lost tax revenue from Internet sales. Although many small business owners believe taxing Internet sales will level the playing field for all businesses, most small businesses do not have the necessary resources to implement a complex sales tax collection system. Any law for collecting Internet sales and use taxes, without some type of exception for small businesses, could have a dire economic impact on many small businesses. The authors discuss the genesis of the initiative and provide a current update of the initiative and its complications. However, the Streamlined Sales and Use Tax proposal is complex and dynamic. Small business owners should continue to monitor the proposal and its potential impact on their business.

Additional Information

Harper, P. & McSwain, D. (2008). "Streamlined Sales Tax: An Update For Small Businesses," Journal of Business and Entrepreneurship, Vol. 20, No. 1, March 2008. Published by the Association for Small and Entrepreneurship. NC Docks permission to re-print granted by author(s).
Language: English
Date: 2008
small businesses, Internet sales, sales tax:state and local governments, Streamlined Sales and Use Tax, tax revenue

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