Sales Tax

The state fiscal environment remains very weak despite the turnaround in revenue growth. It  will be at least several years before many states see revenues return to their previous peak levels and several years more before revenues reach similar proportions of the economy. Though states may be less inclined to seek the tax rate increases that occurred after previous recessions, many are examining ways to tax cross-border activity more effectively.

No state in the Midwest relies more heavily on the sales tax than South Dakota. And in a state where more than half of total tax collections come from this revenue source, it comes as no surprise that lawmakers are trying to address a growing collection problem: the inability to bring in sales and use taxes from purchases made over the Internet.

State eNews Issue #44 | April 15, 2010
 

State revenues are down while the demand for services is up—leaving states in a very precarious position as they tackle their 2011 fiscal year budgets. The upcoming fiscal year will be “the most difficult to date,” according to a survey by the National Governors Association.

Pages