MultiTax Commission

An intergovernmental state tax agency whose mission is to promote uniform and consistent tax policy and administration among the states, assist taxpayers in achieving compliance with existing tax laws, and advocate for state and local sovereignty in the development of tax policy.

← Back to project page

Alternative taxes

The work group decided not to consider alternative taxes. However, the portions of the outline devited to alternative taxes is reproduced here for states that wish to consider it.

Relevant history

– State Sales Tax History and Terminology

Related Federal and State Efforts

– The Streamlined Sales and Use Tax Agreement (opens in PDF)

– The Internet Tax Freedom Act (ITFA)

– The Digital Goods and Services Tax Fairness Act of 2019 (not passed)

Pros and Cons of Applying an Alternative Tax

    1. True gross receipts taxes [see research done by various groups.]
        • Possible Pros – May be simpler.
        • Possible Cons – Pyramiding and need for different rates.
        • Other
    2. Digital advertising taxes [summarizing the discussion of Maryland’s tax.]
        • Possible Pros – Can be tailored to the industry.
        • Possible Cons – ITFA limitations and failure to address other products; OECD Pillar 1 discussions to eliminate digital taxes at the international level.
        • Other
    3. “Data mining” taxes [summarizing Plattner’s proposal and discussion.]
        • Possible Pros – Recognizes value in “free” services provided in exchange for data.
        • Possible Cons – Untested.
        • Other
    4. Alteration of sales tax mechanics – simplifying the sales tax
        • Ability to vary the typical mechanics including separate statement of the tax so as to allow estimated amounts sourced to particular jurisdictions.
        • Elective use of a single state tax rate (i.e., the Texas approach).