The Augusta Courier

Sales Taxes Collected By States Last Year Tripled Pre-War Level

CHICAGO-State sales tax collections topped $1,500 million last year- nearly three times the pre-war level.

Collections were swollen by first year's operation of sales taxes in four states Connecticut, Rhode Island, Maryland and Tennessee the Federation of Tax Administrators reported.

Other factors in the rise of sales tax revenue were rising prices and a high volume of purchasing.

The federation reported, however, a slackening in the upward trend of collections.

The 1948 collections were $248 million higher than in 1947- about 19.2%.

The fastest post-war increase in collections was in 1946 when revenues jumped 32% above those of 1945.

Twenty-seven states levy sales taxes now. California topped the others in 1948 with $291,900,000, an 11.9% gain over 1947.

Michigan's sales tax revenue increased 12.4% to $198 million last year.

Other high-yield states in 1948 were Illinois, $171 million; Ohio $143 million; Washington, $90 million, and Indiana, $67,700,000.

Excluding the four states which enacted sales taxes in mid-1947, the greatest percentage increase in collections last year over 1947 was recorded by Louisiana. There, the rate was doubled to 2% in June and collections reached $31 million, a 77% gain.

Collections were up $1,400,000 in Wyoming, 26.8% rise over 1947. Other notable increases were in North Dakota-$1,400,000 or 23% and South Dakota 20.4% to a total of $11 million.

Connecticut, one of the new sales tax states, cut its rate from 3% to 1% last April and realized $30 million in 1948. Other first full year collection reports were Tennessee, $42,500,000; Maryland, $27,500,000, and Rhode Island, $6,500,000.