Sales taxes up in most US states in March: survey

Reuters News
Posted: Apr 13, 2012 1:43 PM
Sales taxes up in most US states in March: survey

(Reuters) - Sales taxes grew in most U.S. states last month as labor markets improved, an economic newsletter reported on Friday.

In its monthly survey, the Liscio Report found that in 94 percent of states that levy a sales tax, collections grew from March 2011. That was down slightly from the 97 percent that reported year-over-year growth in February.

In addition, 64 percent of the states met or exceeded their forecast sales tax collections, up from 55 percent in February.

The states said positive labor market conditions were supporting sales tax growth, but they are concerned about high gas prices and shocks from Europe.

Not all states levy sales taxes. But those that do experienced a lift in fiscal 2011, according to U.S. Census data released on Thursday, which reported that sales tax revenues rose 8.3 percent from 2011 after dropping for two years in a row.

(Reporting By Lisa Lambert; Editing by Leslie Adler)