By: Ellie Moffat
At an ever-increasing rate, we are seeing states respond to what is quickly becoming an expanding economic crisis. The pandemic has created a huge revenue shortfall in many states due to the lower amounts of sales and income already collected and/or projected to be collected. Many experts have speculated that because of the loss of revenue, states are likely to take action designed to expand tax revenues and decrease costs. We believe it likely states will tax more services and more digital products. We believe we will see the states who have not yet introduced economic nexus or marketplace collection statutes to do so. Perhaps we may even see revisions to some of the existing statutes. We also believe states will begin to reduce or eliminate exemptions and many states will increase their discovery, auditing, and collection efforts.
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