Conclusions
Sales and use tax is an important revenue source for Pennsylvania, constituting 35.4% of tax revenues in 1999-00.
The rapid growth of the Internet economy poses challenges that may significantly erode the sales and use tax base.
Revenue losses associated with consumer Internet sales are expected to reach $157.3 mil. in 2003-04, including losses from digitized products and Internet auctions.
Additional revenue losses may occur from B2B sales due to non-compliance.
E-Commerce creates an unfair advantage for certain industries, types of vendors and consumers.