Consumption taxes (including general sales taxes, excise taxes on specific products, and gross receipts taxes) are an important revenue source for state and local governments. While five states lack state-level general sales taxes (Alaska, Delaware, Montana, New Hampshire, and Oregon), every state levies taxes on some types of consumption. This map shows the share of state and local general revenue in each state that is raised through consumption taxes. Consumption taxes are typically not reflective of taxpayers’ ability to pay, and ITEP research has shown that a heavy reliance on these types of taxes leads to more regressive tax systems overall.
Read More: How Sales and Excise Taxes Work