ERIC Number: ED319100
Record Type: Non-Journal
Publication Date: 1987
Reference Count: N/A
General Sales Taxation. National Education Association Search.
National Education Association, Washington, DC. Research Div.
The third in a series on school finance, this report describes state sales tax practices that, when coupled with individual income and property taxes, add stability and diversity to the local tax system from which public education draws its support. Figures and tables illustrate: the percent of state and local government expenditures for selected state services; the state tax revenue as a percent of the total tax revenue by type of tax; state versus local school revenues as a percent of total revenues for the school years 1976-77 to 1986-87; the association between the state share of school revenue and the state-local sales tax share of state-local revenues; and general sales tax rates. A description is presented of the setting of general sales taxation, the state and local share of school support is discussed, and the conformance of the general sales tax to general taxation principles is described. Issues of sales taxation are discussed, including the idea of softening regressivity via exemptions or credits. Finally, findings and choices for education supporters are advanced, with the following overarching theme: General sales taxation is a very important revenue source for education because it is the single largest source of state own-source general revenue as well as the largest revenue-producing state tax. Furthermore, any expansion of the general sales tax means that the states would have to extend the old tax base and protect the new one. (JAM)
Descriptors: Educational Equity (Finance), Educational Finance, Elementary Secondary Education, Finance Reform, School Support, School Taxes, Tax Allocation, Tax Rates, Taxes
NEA Professional Library, P.O. Box 509, West Haven, CT 06516.
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: National Education Association, Washington, DC. Research Div.