If “cities begin in the mind” and “very large social units are always, in a sense, imaginary,” as David Graeber and David Wengrow propose in The Dawn of Everything: A New History of Humanity, perhaps the metaverse isn’t all that different from the world in which we live.
Many states currently don’t tax transactions occurring in virtual worlds. Although all sales transactions are presumed taxable in states with a sales tax (unless there’s a specific exemption or exclusion), most states haven’t yet clarified which sales tax laws apply to sales made in the metaverse. When will they start? And how will they go about it?