Myth: Declining Sales Tax Revenue

It sure sounds like all this use tax evasion is leading to plummeting sales tax revenue collection, right?

Nope!  

Every state I looked at has been trending upwards over the last few years, while online sales have continued to increase.

A few examples (all from governing.com based on census data):

Nationwide, all states combined sales tax revenue, in millions – Up 8.81%.

2010: 223,039,580

2011: 235,939,298

2012: 242,697,113

What about states that are big Marketplace Fairness Act proponents and are more dependent on sales tax than some other states?

Tennessee (in millions) – Up 6.2%

2010: 6,130,877

2011: 6,186,336

2012: 6,512,362

Washington state (in millions) – Up 10.48%

2010: 9,607,285

2011: 10,580,395

2012: 10,614,137

How about a current figure I found?  Nevada May 2013 – up 6.1% over May 2012.  Up 6.1% in one year, the May figure is the most recent one available at the time of this writing.

You’d think that sales tax revenue collection would be dropping like a rock, the way the states are lobbying for the bill.  They aren’t.

 

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