Brigham Young University Law Review, Vol. 2000, No. 1 (2000), pp. 9-76


Over the past few years, an enormous amount of attention has been devoted to the problems raised by state taxation of electronic commerce, possible solutions to those problems, and, more recently, the question of whether there is a ‘problem‘ at all. We have both been, and continue to be, deeply involved in the debate over these issues -- a debate that has sometimes generated more heat than light. We view this forum as furnishing us an opportunity to take a step back from the fray and to offer our views not only on the critical issues that are dominating the debate but also on the process by which that debate is being conducted. Part I of this article provides an overview of the issues raised by state taxation of electronic commerce. Part II examines the debate over these issues, and suggestions for their resolution, within the framework of the National Tax Association's Communications and Electronic Commerce Tax Project (‘NTA Project‘ or ‘Project‘) and the proceedings before the Advisory Commission on Electronic Commerce (‘ACEC‘). Part III considers the federal constitutional limitations on congressional power to implement proposals addressed to state taxation of electronic commerce.