The Metaverse Is Real, and Yes, There Will Be State Taxes There

This week in state tax news: The virtual reality game Second Life announced it will begin applying sales tax to many features of its platform, raising significant questions about how state and local governments will tax the metaverse. Meanwhile, the Supreme Court declined an opportunity to halt California’s automatic retirement program, and tax relief legislation gained momentum in a half-dozen states.

Anybody planning to live large chunks of their lives tax free as sexy avatars with flowing hair in virtual worlds populated with hipsters, mercenaries, and superheroes got a rude wake-up call this week.

Second Life, the online role-playing ...