What does this research mean for the field?

Following the South Dakota v. Wayfair decision, remote sellers are not broadly entering new states, but when expanding, they are 11 percent more likely to enter high-sales-tax states compared to traditional retailers. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To assess whether eliminating the physical presence requirement for sales tax collection under South Dakota v. Wayfair altered remote sellers' decisions to locate establishments in new states.

September 3, 2026Journal of the American Taxation Association

Sales Tax Collection Requirements and Firm Location Decisions: Evidence from Wayfair

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Authors

JLJennifer Luchs-Nuñez

Discussion

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Overview

Difference-in-differences analysis reveals remote sellers increase entry into high-sales-tax states after Wayfair, indicating tax collection obligations alter business expansion strategies.

Key Points

To assess whether eliminating the physical presence requirement for sales tax collection under South Dakota v. Wayfair altered remote sellers' decisions to locate establishments in new states.
Utilized establishment-level data tracking retail business locations before and after the 2018 South Dakota v. Wayfair Supreme Court decision.
Implemented a difference-in-differences empirical design comparing the location choices of remote sellers to traditional retail firms across states with varying sales tax rates.
Remote sellers showed no broad increase in establishing physical operations in new states immediately following the ruling.
Conditional on geographic expansion, remote sellers were approximately 11 percent more likely to enter high-sales-tax states in the near term relative to traditional retailers.

Cite This Study

Jennifer Luchs-Nuñez (2026) studied this question.

synapsesocial.com/papers/6a993612636c6408cfa7ee95 https://doi.org/10.2308/jata-2025-006

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September 3, 2026Journal of the American Taxation Association

Sales Tax Collection Requirements and Firm Location Decisions: Evidence from Wayfair

View Full Paper

Ask AI

Bookmark

Authors

JLJennifer Luchs-Nuñez

Discussion

Member takes

Overview

Difference-in-differences analysis reveals remote sellers increase entry into high-sales-tax states after Wayfair, indicating tax collection obligations alter business expansion strategies.

Key Points

To assess whether eliminating the physical presence requirement for sales tax collection under South Dakota v. Wayfair altered remote sellers' decisions to locate establishments in new states.
Utilized establishment-level data tracking retail business locations before and after the 2018 South Dakota v. Wayfair Supreme Court decision.
Implemented a difference-in-differences empirical design comparing the location choices of remote sellers to traditional retail firms across states with varying sales tax rates.
Remote sellers showed no broad increase in establishing physical operations in new states immediately following the ruling.
Conditional on geographic expansion, remote sellers were approximately 11 percent more likely to enter high-sales-tax states in the near term relative to traditional retailers.

Cite This Study

Jennifer Luchs-Nuñez (2026) studied this question.

synapsesocial.com/papers/6a993612636c6408cfa7ee95 https://doi.org/10.2308/jata-2025-006

View Full Paper

Ask AI

Bookmark