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...
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Published in | Public budgeting & finance Vol. 39; no. 2; pp. 68 - 90 |
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Main Author | |
Format | Journal Article |
Language | English |
Published |
Malden
Blackwell Publishing Ltd
01.06.2019
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Subjects | |
Online Access | Get full text |
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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. |
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ISSN: | 0275-1100 1540-5850 |
DOI: | 10.1111/pbaf.12215 |