The COVID-19 state sales tax windfall

Dean, Phil; Gaulin, Maclean; Seegert, Nathan; Yang, Mu-Jeung

doi:10.1007/s10797-023-09778-w

Cited by 2 publications

(1 citation statement)

References 21 publications

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“…This confirms revenue that would have been reported as use tax by consumers is now being offset by an increase in retail sales tax collections from remote sellers meeting a state's economic nexus threshold. Dean et al (2023), using data on sales tax collections from remote sellers doing business in Utah, find evidence of the growing proportion of sales tax collected from remote sellers and marketplace facilitators. They find that while sales taxes were expected to decline during the early months of the COVID-19 pandemic, the fortuitous timing of the Wayfair decision and subsequent implementation of economic nexus in Utah prior to the pandemic preserved the sales tax revenue yield as consumers migrated to purchasing taxable goods from remote sellers.…”

Section: The Fiscal Contribution Of Use Taxesmentioning

confidence: 99%

Use tax administration and revenue production in the states

Mikesell,

Stavick,

Ross

2023

Public Budgeting & Finance

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Use taxes are utilized by states to discourage taxpayers from engaging in sales tax avoidance via shopping in lower tax states. Enforcement of this tax has long been difficult, as demonstrated in the case of South Dakota v. Wayfair, Inc. (2018). States have instead relied on different administration and tax structures to generate revenues. We contribute to the limited existing use tax literature by studying a panel of use tax revenues collected from 25 states, as well as use tax collection methods states implement for individual and business taxpayers. States are best at enforcing the use tax where they can rely on complementary administrative tax collection systems, such as in business‐to‐business transactions. They will likely struggle to realize improved use tax compliance for household consumption even in the wake of the Wayfair ruling.

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Section: The Fiscal Contribution Of Use Taxesmentioning

confidence: 99%