States See Sales Tax Growth After Supreme Court Ruling

Route Fifty: State sales tax collections in the third quarter of 2018 outpaced average levels in recent years, a trend due at least in part to a Supreme Court ruling last summer that cleared the way for states to bring in additional tax revenues from online sales, new research suggests.

Last June, the U.S. Supreme Court in South Dakota v. Wayfair overturned prior rulings that had made it difficult  for states to collect taxes on sales by out-of-state, or “remote,” online retailers. States made legislative and regulatory changes in the wake of the case, seeking to ensure they didn’t continue to lose out on these tax dollars.

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