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News Posted on August 24, 2017

Professor Shanske Comments for CNBC on Amazon and Sales Tax Collection

Professor Darien Shanske commented for CNBC on a complaint filed by the State of South Carolina alleging that Amazon is responsible for collecting taxes on sales made by third-party merchants on the company’s marketplace.

Professor Shanske said that South Carolina has a plausible case, and that Amazon could be deemed responsible for collecting the taxes if the state can prove the company is “sufficiently important” to helping out-of-state merchants sell within the state. If successful, South Carolina’s strategy could provide a model for other states seeking to collect tax revenues from Amazon marketplace sellers.

"If one state is successful in pioneering a strategy that might be successful, I'd expect other states to pursue it as well," said Shanske.

Darien Shanske is a Professor of Law at UC Davis. His academic interests include taxation, particularly state and local taxation, local government law, public finance, and political theory, particularly jurisprudence.