The internet has dramatically reshaped the landscape of commerce, expanding opportunities for businesses and consumers alike while presenting new challenges for taxation. Historically, each US state has had the authority to levy taxes on the sale of goods. However, with the rise of online retail, the question of taxing internet sales has become more pertinent, and states stand divided on this issue. The monumental decision in South Dakota v. Wayfair, Inc. case by the U.S. Supreme Court in 2018 shed light on this aspect, granting individual states the freedom to decide whether or not to impose taxes on out-of-state sales by online or remote sellers. Since then, many states have capitalized on this opportunity to harness additional tax revenue to fund various projects.
Key findings from the data include: