Document Type
Article
Publication Date
5-19-2025
Abstract
This article presents the second part of a research project on the tax communications of e-commerce vendors. It details the results of a behavioral experiment designed to test how different representations of sales and use tax obligations influence consumer purchasing decisions. The study finds that potentially misleading indicators, such as "No Tax" or "$0 of Tax," significantly increase the likelihood that consumers will purchase from vendors who do not collect sales tax. Compared to vendors who provide accurate information about potential use tax liabilities, consumers were substantially more likely to choose a vendor displaying a "No Tax" message. These findings suggest that regulating misleading tax representations could be a powerful tool for states to enhance tax compliance, promote fair market competition, and secure tax revenue.
Recommended Citation
David Gamage,
Assessing the Tax Communications of E-Commerce Vendors, Part II, 116 Tax Notes State 448
(2025).
Available at: https://scholarship.law.missouri.edu/facpubs/1354