US states lose $15.5 bln in sales tax to e-commerce in 2003

According to the report by University of Tennessee, state and local governments lost out on $15.5 billion in revenue in 2003 when sales taxes were not collected on Internet sales. The revenue loss is expected to reach $21.5 billion by 2008 as states are unable to collect sales tax on $329.2 billion in taxable transactions, the study said. Researchers see 2006 losses at $19.2 billion.