NCSL Capitol Ideas

Capitol Ideas

April 15, 2003

CAPITOL IDEAS: E-Commerce Gaining Steam, Homeland Security Funds on Their Way

Capitol Ideas is a bi-monthly publication intended provided state capitol journalists with the latest trends and information about the nation's state legislatures.

Electronic Commerce: Nine states have adopted changes to their sales and use tax codes to bring them in compliance with the Streamlined Sales and Use Tax Implementing Agreement (SSTIA). The SSTIA attempts to simplify and modernize the nation's sales and use tax systems in order to reduce the burden of complying with what are often complex and onerous tax codes. Estimates show states lost a collective $13.4 billion in sales and use tax revenue as a result of e-commerce sales in 2001. Simplification of the nation's more than 7,500 sales tax codes would allow states to overcome a U.S. Supreme Court ruling that does not require remote retailers to collect sales taxes except in a state in which they have a physical presence.

Homeland Security: Congress' enactment of a fiscal year 2003 supplemental appropriation opens the door for states and territories to begin accessing $1.5 billion in homeland security grants. While some estimates place the cost of homeland security at more than $9 billion, states are welcoming federal help in this very costly area. See how much your state is eligible to receive.

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