State budget planners around the country thought they would be getting a Christmas bonus six months early in 2018. When the Supreme Court ruled in South Dakota versus Wayfair that online retailers with significant sales within a state were fair game for sales tax liability, states scrambled to take advantage. Legislators quickly built rosy revenue projections from online sales taxes into their budgets, and they adjusted their planned spending accordingly. The only problem? Those revenue projections are likely too rosy, and now some states are in danger of being left in the red.
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