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JUPITER RESEARCH REPORTS THAT IMPOSITION OF SALES TAX WILL HAVE LITTLE EFFECT ON ONLINE RETAILERS
(New York, NY - February 5, 2003) - Jupiter Research, a division of Jupitermedia Corporation (Nasdaq: JUPM), today announced that while it is likely within three to five years that tax will be charged for online transactions to residents of all states and localities that impose sales taxes on retail transactions, this will not be a significant impediment to the growth of the online retail channel.Based on a November 2002 consumer survey fielded by Jupiter Research, Jupiter Research's new report "Sales Tax: Avoidance Is Imperative to Few Online Retailers and Ultimately Futile for All" found that most online shoppers are either unaware of the fact that sales tax can be avoided by searching across multiple online retailers or do not see it as cause to choose one retailer over another. According to the survey and report, only 46% of consumers were aware of the fact that they could avoid sales tax by comparison shopping at many different retailers' Web sites. Of those aware, 61% do not go out of their way to find online retailers that don't charge sales tax. Thirty percent of this group sometimes looks for an online retailer that will not charge sales tax and only 9% always looks for a retailer that will not charge sales tax.
According to Ken Cassar, Senior Analyst at Jupiter Research, "With budget deficits on the horizon, state and local governments have stepped up their efforts to collect sales tax from online retailers. The collection of taxes is no longer an if but a when. Fortunately for online retailers, only a minority of their customers are aware of the fact that they can avoid sales tax by shopping around. Among those that are aware of the fact that sales tax can be avoided, only 9%, actually make merchant selection decisions based upon whether or not that retailer charges sales tax. The benefits of multi-channel integration overwhelmingly outweigh the importance of sales tax avoidance," stated Cassar.
The complete findings of Jupiter Research's report "Sales Tax: Avoidance Is Imperative to Few Online Retailers and Ultimately Futile for All" are immediately available to Jupiter Research clients online. For more information please contact Kieran Kelly at 1-800-481-1212 or [email protected].
About Jupitermedia Corporation
Jupitermedia Corporation (Nasdaq: JUPM), (www.jupitermedia.com)
headquartered in Darien, CT, is a leading provider of global real-time news, information, research and media resources for information technology and Internet industry professionals. Jupitermedia includes the internet.com and EarthWeb.com Network of over 150 Web sites and 175 e-mail newsletters that generate over 200 million page views monthly. Jupitermedia also includes Jupiter Research, a leading international research advisory organization specializing in business and technology market research in 18 business areas and 10 vertical markets. In addition, Jupiter Events include nearly 40 offline conferences and trade shows focused on IT and business-specific topics.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release which are not historical facts are "forward-looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties address a variety of subjects including, for example, the competitive environment in which Jupitermedia Corporation competes; the unpredictability of Jupitermedia Corporation's future revenues, expenses, cash flows and stock price; Jupitermedia Corporation's ability to integrate acquired businesses, products and personnel into its existing businesses; Jupitermedia Corporation's investments in international and venture fund investments; any material change in Jupitermedia Corporation's intellectual property rights and continued growth and acceptance of the Internet and information technology. For a more detailed discussion of such risks and uncertainties, refer to Jupitermedia Corporation's reports filed with the Securities and Exchange Commission pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934. The forward-looking statements included herein are made as of the date of this press release, and Jupitermedia Corporation assumes no obligation to update the forward-looking statements after the date hereof.
CONTACT:
Michelle Quinell/Ben Billingsley
Trylon Communications
212-725-2295
[email protected]
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All current Jupiter Research press releases can be found online at www.internet.com/corporate/press.html.
All current Jupitermedia Corporation press releases can be found on the World Wide Web at http://www.internet.com/corporate/press.html.
