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Do eBay Sellers Comply with State Sales Taxes?
National Tax Journal (2010)
  • Mikhail I. Melnik, Kennesaw State University
  • James Alm, Georgia State University
The rapid growth in online commerce has eroded state sales tax bases. However, the extent of this reduction is difficult to estimate. In this paper we collect our own data from on a "representative" commodity classification and a "typical" day. Our data consists of nearly 21,000 eBay listings generated by roughly 7,000 individual sellers with 9,300 buyers. We find that overall eBay seller compliance is quite low, but that compliance by established sellers is significantly higher. Given that established sellers account for the bulk of online commerce, the estimated loss from eBay seller noncompliance may be relatively small.
Publication Date
June, 2010
Citation Information
Mikhail I. Melnik and James Alm. "Do eBay Sellers Comply with State Sales Taxes?" National Tax Journal Vol. 63 Iss. 2 (2010)
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