States Enjoy Boost In Tax Revenue From Increased ECommerce

While the COVID-19 pandemic has been hard, if not downright disastrous, for businesses and governmental agencies across the country, states are now seeing a small ray of hope in the form of online sales tax revenue.

With many people self-quarantining at home and brick and mortar retail locations closed over the last several months, eCommerce has been the shopping avenue of choice across the nation.

Additionally, the adoption of marketplace facilitator and economic nexus legislation over the past two years as a result of the South Dakota v. Wayfair ruling has also played a part. For states that have implemented these laws, the boost in eCommerce has compounded with the increased tax revenue these states are seeing from Wayfair legislation.

How Big Is The Impact of Increased eCommerce?

States have seen an increase in eCommerce across the board. According to data from Adobe Analytics, eCommerce grew by 25 percent from March 13-15 compared to March 1-11. Online retailers have also seen average year-over-year revenue growth of over 68 percent and have recently experienced similar online activity to the 2019 holiday season.
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