Online Sales Tax Business & Marketing Research Paper (Research Paper Sample)

Connor Morgan
Bus 200
Professor Sprishen
Tax Paper
4/1/20
Online Sales Tax
When a retailer attaches an additional amount that is payable by the consumer onto an item that the consumer buys as a tax payment, that payment is called a sales tax. Online sales tax, otherwise known as e-commerce tax is a sales tax that is charged by an online retailer. The constitutionality of charging an online sales tax is a subject of discussion for many. However, amendments to the constitution make it legal to charge such a fee. Online sales taxes by online retailers and can be made legal through establishing a nexus since such taxes are useful in several ways. By making this a necessity, tax collection is made possible.
The constitution requires that a connection is established between the state and the business people together with consumers. The link is known as a nexus. According to Thimmesch, Shanske, and Ganske," the Court referred to its Polar Tankers21 opinion in stating that "nexus is established when the taxpayer [or collector] 'avails itself of the substantial privilege of carrying on business' in that jurisdiction."(Thimmesch, Shanske and Ganske 977).A nexus carries out several functions about sales taxes, including creating a condition that allows for a taxpayer to impose a tax and establishing a reasonable scale for business activity that can warrant the imposition of a fee. When used as a scale, a nexus measures two things—the amount of business and extent of business a company does. If a taxpayer has a nexus to a particular state, then it is paramount that they pay taxes to that state as is required by law.