Monday, June 16, 2008

Sales Tax revenue is flat

Sales and Use Tax is mixed for the four largest states in the U.S. In California, sales tax collections for the last 12 months is down 3.54% compared to a 12 month period ending a year ago. Florida is down 5.76%. Both California and Florida are in a recession. Texas continues to show strong growth and is up 6.63%. New York is also growing at a pace of 2.67%. The composite of all 4 weighted for GDP contribution is flat at a -0.09%. Together these 4 states account for about a third of U.S. GDP.




Sales and Use tax revenue has stalled. Even in Florida and California, the acceleration downward has leveled off. We appear to be in a wait and see mode.


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1 comment:

Unknown said...

Despite opposition from everyone from animal lovers to golfers, Gov. Arnold Schwarzenegger's proposal to expand the state's sales tax to cover a number of services is a sound idea. The tax increase is expected to raise $8 billion dollars a year.

http://www.caivp.org/article/tax-reform/2009/2/11/expand-sales-tax