The U.S. Census Bureau reports that U.S. e-commerce retail sales for the third quarter of 2010 were up 13.6% from the same quarter in 2009 and up 4% over the previous quarter. E-commerce sales accounted for 4.2% of total sales in the third quarter of 2010.
Because some of the largest internet retailers (like Amazon) do not collect state and local sales taxes, many states typically lose revenue from these transactions. Researchers at the University of Tennessee, who periodically estimate state and local revenue losses from e-commerce sales, estimate that Connecticut will lose between $56.7 and $63.4 million in FY 2011 in sales tax from e-commerce sales. They project over $10 billion in revenue losses nationwide in FY 11 attributed to e-commerce.
For more information, see OLR's report, 2010-R-0193.
