Economy, not internet, cited for drop in state sales tax revenue

JACKSON – State Economist Darrin Webb cites economic angst, not internet shoppers, for the prolonged period of sluggish sales tax collections for the state.

The collection of the sales tax, the state’s largest source of revenue, was sluggish during the past fiscal year and started the new fiscal year on an even more dismal note. The anemic sales tax collections is one of the reasons state revenue has not met projections, resulting in multiple budget cuts, layoffs of state employees and the elimination of some programs.

“I think it is primarily the economy,” Webb said in an emailed response when asked about the sluggish sales tax collections. “We have had no upward momentum this year. Year over year income growth is modest.”

Daily Journal