The rise of e-commerce poses intriguing legal questions, of which Internettaxation is one of the hottest. As with all e-commerce issues, some of theold laws apply easily, some need tweaking, and other transactions don’t fitany current model.
Let’s say you set up an e-commerce business. You are located in Washington,D.C.; the server that processes the transactions is located in Pennsylvania;the fulfillment house that you use to complete the orders is in Kansas; andyou are shipping into all 50 states. Whose tax laws will apply to thetransaction? Will one state’s law supersede the others? What type ofproducts will be subject to tax? Which forms of tax will you have to worryabout?
