Minnesota Politics: Strapped states cancel sales-tax holidays
media mentionThe Bay State isn’t the only state to forgo its sales-tax holiday in order to raise additional funds. Kansas, North Carolina, Nebraska, Rhode Island and Wisconsin, state legislators are among those that have also decided against holding new tax holidays or reinstating them during the last few years, and they’ll be saving money as a result, according to a July report by the Institute on Taxation and Economic Policy, or ITEP, a nonpartisan think tank.
ITEP estimates that state and local governments that retain the holidays will lose out on more than $300 million in revenue due to the holidays this year. Those losses in revenue come as states are also poised to see aggregate tax revenue growth below 4 percent this year, down from 5.5 percent in 2015, according to Moody’s Investors Service.