The Internet Tax Freedom Act, passed by the U.S. Congress, is both a result of and a potentially important influence on the growth of electronic commerce. This paper examines the impact of the moratorium imposed by the legislation prohibiting the collection of taxes on Internet commerce. Its significance with respect to business-to-business and business-to-consumer commerce is documented by analysis of current sales activities. The paper also explores the potential impact on a variety of sales categories if the moratorium is extended beyond the current three-year period of effect. The discussion illustrates how continuing the force of the legislation will have an increasingly significant effect on both states, which depend on sales tax revenue, and participants in Internet commerce.
Senn, James A., "The Impact of the Internet Tax Freedom Act on State Revenues" (2000). AMCIS 2000 Proceedings. 432.