Governor's Council on Tax Policy supports food tax rebate, online sales tax as state revenues beat expectations again Featured

Governor's Council on Tax Policy supports food tax rebate, online sales tax as state revenues beat expectations again KVOE News file photo

State revenues continue to beat expectations.


November's tax collection was almost $534 million, up $12 million or 2.3 percent from projections and above last year's mark by $34 million.

Individual income taxes, retail taxes and compensating use tax collections were all better than expected. Corporate income tax collections, however, missed projections.

The report this week came shortly before the Governor's Council on Tax Policy proposed a $32 million tax on internet sales by out-of-state businesses and a $30 million sales tax on digital products like cooks and video games. The council also:

*Supported the re-establishment of a local ad valorem tax reduction fund, which would help cities and counties slow down property tax increases. It hasn't been funded since 2003
*Supported a food sales tax refund program. If approved, residents would fill out a form with their income tax return for refunds based on household size. The state's current 6.5-percent sales tax on food is among the highest in the country, but the council decided against encouraging elimination of the food tax -- saying it would cost the state $400 million.

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