- Alaska is considering introducing its first statewide sales tax to address a $1.5 billion budget deficit, with a proposed bill featuring seasonal rates, a broad tax base, exemptions, and a sunset clause.
- The bill would centralize sales tax administration, replacing over 100 local taxes with state oversight.
- Montana is also debating a statewide sales tax to diversify revenue and reduce property tax reliance, but concerns exist about its effectiveness and regressive impact.
- Both states are motivated by fiscal instability due to declining commodity revenues and demographic changes.
- If Alaska adopts a sales tax, it would be the first new state to do so since 1969, potentially influencing other “no sales tax” states.
Source: vatcalc.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.
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