As discussed in an April Sales Tax Buzz post, sales tax receipts generally outpace income taxes as the primary food source for state budgets. Noting the dismal Q2 receipts that came off a disastrous Q1 2009, while considering that June closes the fiscal year in a majority of states, fiscal 2010 does not look pretty from here.
Last quarter, the Western states fared the worst, most notably California, Nevada, and Arizona. This quarter, the same states continue to suffer. In California, we’ve seen the emergence of a new market for the buying and selling of state-issued IOU’s (just hop on Craig’s List and see for yourself).
Reports on worse than expected sales tax receipts are coming from Colorado, Hawaii, Idaho, Maryland, Massachusetts, Minnesota, New Jersey, New York, Kentucky, Oklahoma, Pennsylvania, Tennessee, Texas, as well as other states.
At least back-to-school shopping season is right around the corner.
Filed under: Uncategorized Tagged: | California, Colorado, Hawaii, IOU, Minnesota, New Jersey, Oklahoma, Q2, sales tax receipts, sales tax revenues, state budgets, Tennessee, Texas
