Sales tax expenditure reporting: A state problem

This paper addresses a number of issues surrounding sales tax expenditure reporting. It examines the problem of defining a normative tax structure, concluding that no acceptable model exists on which to base such a structure. Instead, it suggests an approach that couples a starting point of sales for final consumption with a review of what is commonly taxed in other states. The paper also addresses some of the data problems associated with making tax expenditure estimates. It concludes with a presentation of sales tax expenditure estimates for New York State.