David S. Gamage (UC-Berkeley) & Devin J. Heckman (Simpson Thacher, New York), A Better Way Forward for State Taxation of E-Commerce, 92 B.U. L. Rev. 483 (2012):

We propose a novel solution for states that wish to tax interstate e-commerce – based on fully and adequately compensating remote vendors for all tax compliance costs. We argue that our proposed solution is compatible with the Quill framework for when states can constitutionally impose burdens on remote vendors. We argue that unlike our proposed solution, the recent state attempts to tax interstate e-commerce through so-called “Amazon laws” are unconstitutional, ineffective, or both. We thus urge the states to adopt our proposed approach as the best way forward for state taxation of interstate e-commerce.