E-Commerce Taxation Links

Prepared by Annette Nellen

This page includes background papers on electronic-commerce taxation (also known as Internet Taxation) issues, statistics, work being done on the issues by various groups, and several points to consider in examining how various tax rules should (or should not) apply to e-commerce. Below are various links to several other e-commerce taxation papers, and well as legislative information.

NOTE: Some of the papers originally linked on this page have been removed by their author, likely due to currency. Sorry for any broken links.

Table of Contents

  • Outlines and Reports Explaining E-Commerce Tax Issues by Annette Nellen

  • Legislative Proposals Related to E-Commerce Taxation:

  • Federal              August 2004 Update on the Internet Tax Moratorium

  • California

  • SSTP activity

  • Governmental Reports on E-Commerce Taxation:

  • Federal Government - Reports

  • California - Legislation and Reports

  • Federal Advisory Commission on E-Commerce Activities

  • This section includes a link to the ACEC report + summaries and links to e-commerce taxation bills and hearings of the 106th Congress

  • Organizations and Commissions - Reports and Activities 

  • Streamlined Sales and Use Tax Project

  • International - reports from the OECD and various countries

  • Other organizations and reports

  • Outlines and Reports Explaining E-Commerce Tax Issues (by Annette Nellen)


    Reports from the Federal Government


    Federal Advisory Commission on E-Commerce



    Federal Legislative Proposals and Hearing Information - 112th, 111th, 108th, 107th, 106th Congresses

    112th Congress

    111th Congress


    108th Congress




    107th Congress

    One bill becomes law!  H.R. 1552 to extend the moratorium to November 1, 2003 was signed by President Bush on November 28, 2001 (Public Law No: 107-75) - click here.

    Joint Committee on Taxation - Overview of Issues Related to the Internet Tax Freedom Act and of Proposals to Extend or Modify the Act, July 30, 2001, JCX-64-01.










    Senator Gregg notes: "NET FAIR provides legal certainty for companies and consumers that engage in interstate commerce via the Internet, telephone, or mail order. This bill adheres to our Founding Fathers' tenet of 'no taxation without representation' by codifying fair taxation principles. We cannot stand idly by and allow this new economic avenue to be hampered with new taxes. This legislation does not preempt a State's right to tax commerce; however, it does protect businesses and consumers from unfair taxation on interstate commerce and from what could be a crippling effect on the growth of the new 21st Century economy." [Congressional Record of 3/29/01, S3172]

    S. 664 is identical (other than the name was changed) to S. 2401 introduced by Senator Gregg in the 106th Congress.



    H.R. 1410 (Istook) - same as S. 512.

    Testimony from the March 14, 2001 Hearing of the Senate Committee on Commerce, Science & Transportation (scroll down to find the testimony).

    Testimony from the August 1, 2001 Senate Finance Committee hearing.



    106th Congress












    `(1) Current Generation Broadband Credit equal to 10% of the qualified expenditures incurred with respect to qualified equipment offering current generation broadband services to rural subscribers or underserved subscribers.

    `(2) Next Generation Broadband Credit equal to 20% of the qualified expenditures incurred with respect to qualified equipment offering next generation broadband services to all rural subscribers, all underserved subscribers, or any other residential subscribers.




    Legislation and Reports from the State of California




    HTML    Adobe Acrobat 
    Accompanying Report Supplements:  HTML, Acrobat



    Reports and Activities of Various Organizations and Commissions




















    Other Links, Reports and Information About E-Commerce and Taxes













    E-Commerce Accounting Issues

    In late 1999, the SEC sent a letter to the EITF listing several types of transactions of Internet companies and seeking guidance on how they should be reported. Several of these items are listed below. The status can be tracked at the FASB web site.

    Issue No. 99-14, "Recognition of Losses on Firmly Committed Executory Contracts"

    Issue No. 99-17, "Accounting for Advertising Barter Transactions"

    Issue No. 99-19, "Reporting Revenue Gross versus Net"

    Issue No. 99-O, "Accounting for the Costs of Developing a Web Site"

    Issue No. 99-P, "Application of AICPA Statement of Position 97-2, Software Revenue Recognition, to Arrangements That Include the Right to Use Software Stored on Another Entity's Hardware"

    Issue No. 99-V, Remaining Issues from the SEC's October 18, 1999 Letter to the EITF

    Issue 00-2, Accounting for Web Site Development Costs (consensus reached in March 2000)

    Information About Engaging in Electronic Commerce

    The links below are not intended as endorsements of any of the sites, but just as examples of what exists online to assist e-commerce businesses.

    Sources for Data about Size and Growth of E-Commerce

    Last updated October 13, 2018

    The views and opinions expressed in this page and its attachments are strictly those of Professor Annette Nellen. The contents of this page have not been reviewed or approved by San Jose State University.

    Last Modified: Feb 22, 2023