Vermont Town Loses $800,000 Due to Simplified Sales Tax

An article in the Times Argus Online announces how the state of Vermont gained $750,000 in new state sales tax, but the local town of Manchester lost $800,000. One could argue there's a $50,000 loss between monies gained and monies lost.

"Although the state has seen an increase in revenue from being part of the agreement, it has taken its toll on at least one municipality. The town of Manchester, which collects a 1 percent local option tax on retail sales, is expected to close out its current fiscal year with a reduction of about $800,000 from last year's local option tax revenue"

One of the drawbacks of joing the Streamlined Sales Tax initiative is the loss of the ability to tax certain items at different tax rates and to impose caps.

Bottom line: Streamlined Sales Tax is a no lose proposition for states, not so for local governments and programs that depend on local sales taxes.

Read the entire article.