The Impact of the Amazon Tax on Local Sales Tax Revenue in Urban and Rural Jurisdictions

E‐commerce has become an integral part of Americans’ lives and while it offers many benefits, it also represents forgone sales tax revenue for governments. Using a difference‐in‐differences model, this analysis examines how the Amazon tax affected local sales tax collections in North Carolina and wh...

Full description

Saved in:
Bibliographic Details
Published inPublic budgeting & finance Vol. 39; no. 2; pp. 68 - 90
Main Author Afonso, Whitney B.
Format Journal Article
LanguageEnglish
Published Malden Blackwell Publishing Ltd 01.06.2019
Subjects
Counties
Jurisdiction
Policy making
Rural areas
Rural urban differences
Sales taxes
Tax collections
Tax revenues
Tourism
Online AccessGet full text

Cover

More Information
Summary:E‐commerce has become an integral part of Americans’ lives and while it offers many benefits, it also represents forgone sales tax revenue for governments. Using a difference‐in‐differences model, this analysis examines how the Amazon tax affected local sales tax collections in North Carolina and whether that impact has been greater for urban, rural, or tourism‐rich counties. The results suggest that the Amazon tax increased revenues and urban jurisdictions benefit most. This finding is important for practitioners and policymakers as they consider the impact of policy changes, such as the South Dakota v. Wayfair ruling, on revenue capacity and financial management.
ISSN:0275-1100
1540-5850
DOI:10.1111/pbaf.12215