Why Reports Of Huge State Sales Tax Losses Are So Wrong

With the latest report of Mississippi’s projected and utterly inflated “losses” from Ecommerce use tax not being collected, I thought I’d do a quick check.

As mentioned before, the top vendors in Ecommerce are larger, stronger and are now the vast majority of ecommerce sales.  The big are getting bigger.  Researchers don’t generally understand this and just do straight line projections and estimates.

Out of the top 15 online retailers, only 1 of the top 15 (Nordstrom) doesn’t collect sales tax for Mississippi at this time.  Most sales tax is collected, the pot of gold at the end of the rainbow the states are hoping for is just fantasy.

Retailer                                                                  sales in millions                 collects MS tax?

1. Amazon.com $79,268 Yes
2. Wal-Mart Stores Inc. $13,484 Yes
3. Apple $12,000 Yes
4. Staples $10,700 Yes
5. Macy’s $4,829 Yes
6. The Home Depot $4,267 Yes
7. Best Buy $3,780 Yes
8. QVC $3,722 Yes
9. Costco Wholesale $3,618 Yes
10. Nordstrom $2,699 No
11. Target $2,524 Yes
12. Gap Inc. $2,519 Yes
13. Williams-Sonoma $2,501 Yes
14. Kohl’s $2,367 Yes
15. Sears Holdings $2,057 yes

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