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α: calibrated so average coauthorship-adjusted count equals average raw count
Requiring firms, rather than individuals, to remit sales taxes improves tax compliance. In the United States, this shift toward firm-based remittance rules for remote purchases occurred gradually after South Dakota v. Wayfair. Using comprehensive and high-frequency local sales tax revenue data, we show that due to the increased compliance after Wayfair, revenues increased in the average locality by 5.4 percent and subsequently increased 5.1 percent after states required platforms to pay taxes on behalf of marketplace vendors. Critically, these effects are mainly a result of substantial increases in small towns and counties, with much smaller effects in larger jurisdictions. Increases in tax compliance thus influence both the level of tax revenues and its distribution across places.