The revenue that a sales tax could generate depends upon the size of the tax base, the categories of sales that are excluded, and the tax rate (including tax ceilings). A recent set of analyses estimated that a 1% sales tax would have generated between $70 and $116 million in 1998 depending upon what categories of sales were excluded.
Many local governments in Alaska already impose a sales
tax ranging from 1% up to 6% (Kotzebue and Petersburg) and 7% (Wrangell).
These estimates assume the statewide sales tax is added on top of any
local taxes already imposed.
Alaska Fiscal Policy Paper #6, "Who Will Pay for Balancing the State Budget?" (ISER), estimated in 1991 that a 6% sales tax with basics exempted would produce $216 million.
Other States. As of 1999, 45 states had a state sales tax. The median rate was 5% and ranged from a low of 3% in Colorado to a high of 7% in Rhode Island (Federation of Tax Administrators). The tax bite (as a percentage of personal income) among these 45 states varied in 1997 from a low of 1.20% in Virginia to a high of 4.78% in Hawaii.
States without a statewide sales tax in 1999 were Alaska, Delaware, Montana, New Hampshire, and Oregon.
See the detail by state.