Skip to content
Subscriber Only
Businessweek
Politics

The Wayfair Case and Covid Sparked a State Sales Tax Bonanza

A boom in online commerce and a favorable court decision combine to fill depleted treasuries.

relates to The Wayfair Case and Covid Sparked a State Sales Tax Bonanza
Illustration: Patrik Mollwing for Bloomberg Businessweek

Rachel Ramos, who sells graphic T-shirts on Etsy from her home in Fort Worth, was considering closing her shop before she saw business unexpectedly boom last May. The shop brought her $25,000 from May through December, compared with $11,000 the entire previous year. She’s saving that money to buy a house for her and her two children. “This kept me from having to struggle as a single mother,” she says.

A less obvious, indirect recipient of her windfall: the states where her customers live, which can use taxes on her T-shirt sales to help plug the holes in their budgets.