Sales Tax Audits Could Help States Manage Virus’s Fiscal Impacts

June 9, 2020, 6:41 PM

States hungry for new revenue in the wake of the coronavirus pandemic may seek to broaden their sales tax bases and expand collection authorities under laws enacted in the wake of the Supreme Court’s Wayfair ruling.

Sales and use tax collections are lagging significantly year over year, based on state revenue reported for May, according to the tax software firm Sovos. Texas collected $2.6 billion in May, 13.2% lower than May 2019 and the biggest decline in a decade. Kansas tax collections were down 20.3%, Pennsylvania 19.3%, and West Virginia 22.1%, the company said.

States are already slashing budgets ...

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