Regular people are opening thousands of PO boxes across state lines specifically to dodge online sales taxes.
SSRN · March 18, 2026 · 6330778
The Takeaway
Following new laws requiring online retailers to collect sales tax, there was a measurable surge in PO box demand in neighboring, low-tax zip codes. It reveals a hidden cross-border delivery economy where everyday shoppers adopt corporate-style tax avoidance strategies to save a few dollars on packages.
From the abstract
This study examines consumer response to changes in sales tax collection requirements. As physical presence-based nexus became less effective amid rising online shopping, states adopted broader rules tied to economic activity. Our findings are consistent with consumers utilizing crossborder delivery to minimize sales taxes in reaction to states adopting economic nexus standards. Specifically, focusing on zip codes along state borders, we observe that implementing economic nexus standards decreas