Sales Tax Collections Hit All-Time High
Sales tax collections in the United States are on the rise and at an all-time high, according to TaxConnex, America’s leading independent provider of sales and use tax outsourcing and consulting services.
The company recently compiled data from the US Census Bureau regarding recent national sales tax trends. The study reveals that sales tax collections show a steady increase over the past several years. After a fairly significant decline during 2008 and 2009 as a result of the economic crisis, states expanded the list of taxable items. The result has been a steady growth of sales tax collections.
“The conversation du jour surrounding sales tax revolves around how much sales tax collection is being lost as a result of the shift in buying patterns to the Internet. With the tenor of the conversations, you would expect that sales tax collections would be significantly down. This is just not the case,” said TaxConnex Partner Brian Greer. “Sales tax collections, which account for over 30 percent of all states’ revenue and is the single largest source of revenue for many states, is at an all-time high.”
TaxConnex will continue to monitor sales tax collections in 2013 and plans to provide updated guidance on how to protect against an expanding tax base, increasing sales tax rates, and pending Federal legislation.