New story: Sales tax holidays erode state revenues
My latest story — and set of graphics — at Stateline.org. Check it out!
As shoppers in 15 states rush to buy tax-free clothing and school supplies this August, some lawmakers are experiencing buyer’s remorse: Their “sales-tax holidays” are pinching revenues at a time when state coffers are hurting.
Nearly all of the states offering sales tax breaks this month estimated they could miss out on millions of dollars in income when they could least afford it in this recession-ravaged climate, according to data provided by state budget offices.
Fearing those losses, three states — Florida, Maryland and Massachusetts — recently canceled their much-anticipated tax-free weekends in August. The District of Columbia decided in July to suspend its first of two annual tax breaks. (Read the rest)
