After Wayfair: What Are State Use Taxes Worth?

24 Pages Posted: 13 Jun 2019

See all articles by John L. Mikesell

John L. Mikesell

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA)

Justin M. Ross

Indiana University - School of Public & Environmental Affairs

Date Written: May 31, 2019

Abstract

The U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc. that states may require sellers without a physical presence to collect use taxes has generated much enthusiasm and dread among observers. We present new data on revenues from the state use tax between 2010 and 2017. We also present a unique monthly series of remote vendor use tax collections for Indiana before and after the Wayfair ruling and use the synthetic control method to derive a treatment effect of the policy change. While remote vendor registrations have tripled, we find there has been relatively modest impact on state revenue.

Keywords: sales and use tax, e-commerce, nexus

JEL Classification: H27, H71

Suggested Citation

Mikesell, John L. and Ross, Justin M., After Wayfair: What Are State Use Taxes Worth? (May 31, 2019). Available at SSRN: https://ssrn.com/abstract=3397342 or http://dx.doi.org/10.2139/ssrn.3397342

John L. Mikesell

Indiana University Bloomington - School of Public & Environmental Affairs (SPEA) ( email )

1315 East Tenth Street
Bloomington, IN 47405
United States
812-855-0732 (Phone)
812-877-7802 (Fax)

Justin M. Ross (Contact Author)

Indiana University - School of Public & Environmental Affairs ( email )

1315 East Tenth Street
Bloomington, IN 47405
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
72
Abstract Views
734
rank
389,203
PlumX Metrics