A key factor in determining potential tax losses is the percent of remote sales subject to tax. The analysts had to come up with this factor on their own, using data from a variety of sources. Current tax compliance by sellers and purchasers . Another factor in calculating sales tax losses is the tax compliance by sellers and purchasers. For instance, there is uncertainty about the amount of tax collected by sellers.
Many remote sellers collect tax only in one or two states, but others collect tax in all states.
Some collect no tax at all. Where a seller does not collect the tax, the buyer is usually required to self-impose the tax. Disagreements arise in use tax compliance by businesses. Unfortunately, little hard data on business compliance is available. According to the report, only 2 of 17 states were able to provide impirical evidence of use tax compliance by businesses.