States See Surge in Tax Collections From Online Sellers (1)

Sales and use tax collections from e-commerce transactions have become the one silver lining running through the coronavirus cloud darkening state revenue coffers.

The evidence is still anecdotal, but sources watching state revenue numbers told Bloomberg Tax collections from online sellers were at least 25% higher during the early months of the pandemic compared to the same period last year.

The surge is attributed to increases in online shopping due to state shelter-in-place orders and wider compliance with sales tax statutes reflecting the precedent established in the Supreme Court’s South Dakota v. Wayfair ruling. The 2018 ruling cleared the way ...