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Mississippi Municipal Association fears impact

E-commerce a threat to tax revenues

Looking at the popularity of drive-in windows for banks and fast food restaurants, it is easy to see that in today`s fast-paced society, consumers love convenience.

And people are increasingly finding that “e-commerce,” purchasing goods electronically through the Internet, is easy and convenient.

One thing that makes e-commerce attractive is that buyers don`t have to pay sales tax.

In many cases, the savings from not paying sales tax means that goods can be delivered right to the door at the same cost as picking up the items at a local store. Savings from not paying sales tax cover shipping charges.

But as shoppers increasingly use the Internet to purchase goods, what impact does that have on the municipal and state governments that depend on sales tax revenues to fund vital services?

The results could be devastating to Mississippi, according to the Mississippi Municipal Association (MMA).


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