- Weaker state revenue could lead to new sales tax trends such as new levies, tougher nexus thresholds, and intensifying audits in 2024.
- State tax revenues dropped 5.3%, but state sales tax revenues are projected to increase 1.7% in fiscal 2024.
- Only seven states are forecasting growth exceeding 5%, while eight forecast declines in sales tax revenues in fiscal 2024.
- Idaho, South Dakota, Louisiana, South Carolina, and Florida are expected to be hit hardest by falling sales tax revenue, while West Virginia, Massachusetts, Kentucky, Iowa, and New York are expected to do best with sales tax in 2024.
- Delivery fees are becoming more common, with Colorado introducing a fee on all retail deliveries and other states like Minnesota and New York pursuing their own delivery fees.
- Economic nexus thresholds have been decreasing in many states since the Supreme Court’s 2018 Wayfair decision, and this trend is expected to continue in 2024.
- Sales tax holidays are likely to continue in 2024, offering breaks on various items, but critics argue that they are politically motivated and do little to save consumers money.
Source: taxconnex.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
