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The 2025 State of Internet-Based Taxation in the United States… Is Ridiculous

The 2018 Wayfair decision unlocked economic‑nexus rules, prompting every state with a sales tax to require remote sellers to collect and remit taxes based on revenue thresholds. Today more than 12,000 state, county and city jurisdictions impose distinct rates, filing formats, and exemption rules, turning a simple checkout calculation into a multi‑layered compliance engine. Marketplace‑facilitator statutes have shifted tax‑collection responsibilities onto platforms, while digital‑goods classifications—especially SaaS—remain a legal maze across dozens of states. Together, these forces generate sizable operational costs and audit risk for multi‑channel e‑commerce businesses.