States could receive millions of dollars if they received taxes for online purchases, and the potential revenue source is a subject of political debates this season. In Idaho, the National Conference of State Legislatures (NCSL) estimates it could gain up to $103 million from online sales taxes, and a Superintendent for Public Instruction candidate wants online companies to tax customers upfront and send the money to the state, IdahoReporter.com reported. The process has been fraught with legal difficulties in other states, however. Virtually all states were in “survival mode” this year, according to Stateline.org. Collectively, states were forced to eliminate more than $100 billion in funding gaps for the new fiscal year that started July 1.
Tuesday, October 19, 2010
Report indicates big increase in state sales taxes
The accounting current event that I read is about the report indicates big increase in state sales taxes. State government have the highest sales taxes in 28 years. The average state sales tax rate was 5.52 percent in the first nine months of 2010, which is slightly higher than the 5.48 percent recorded for last year. Sales taxes generate more money overall than taxes on property or income. The sales taxes rate will be higher by December 2010 said by one of the accountant. Sales and use taxes make up nearly 32 percent of state taxes, the report states. Forty-five states levy this tax, and the outlook for collections is more optimistic than last year. Thirty-four states expect sales tax collections to rise above FY 2010 levels, with Colorado projecting a 14 percent year-over-year increase.
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