States are seeing double digit growth in sales tax revenue, a trend that has been fueled in part by changes in consumer spending during the pandemic.
Many countries in LATAM, such as Mexico, Argentina, Chile, Colombia, Costa Rica, Uruguay, Paraguay and Ecuador, have taken full advantage of the digital economy’s growth by taxing digital services. The result has been not only prodigious increases in tax revenues, but also significant increases of tax compliance on those digital platforms that sell goods and services.
The first half of the year saw a flurry of virtual currency-related legislation introduced at the state level, and two recently signed laws specifically address cryptocurrency’s treatment as unclaimed property (UP). According to Illinois S.B. 338, entities holding abandoned virtual currency are required to liquidate the UP and remit the proceeds to the state Treasurer. And effective August 1, 2021, Delaware added “virtual currency” to the definition of property subject to reporting requirements for unclaimed property. Like Illinois, the state says virtual currency UP must be liquidated prior to reporting and remitting the proceeds of the liquidation to the state.