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Texas, like Illinois, splits its sales tax collections with local governments. Unlike Illinois, its economy and tax base are growing.

Result: Texas today announced it will share almost $700 million with localities just for collections in October. That’s a whopping increase of 10.8% over October 2016 — an additional $75 million for Texas towns and cities for just one month.

In Illinois, meanwhile, sales tax collections have been close to flat, as reported in the most recent report from Illinois’ Commission on Government Forecasting and Accountability. And the state recently reduced the portion it shares with municipalities by subtracting a 2% “management fee.”

Texas has its problems and its level of government services may not be a model to admire, but have no doubt that Texas and other high-growth states are rapidly gaining resources and we aren’t.

-Mark Glennon is founder and Executive Editor of Wirepoints. Opinions expressed are his own.

 

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1 Comment on "Texas vs Illinois: One glimpse at how Illinois’ stagnant economy hurts — local sales tax sharing – Quicktake"

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bruce

Failed State, with no plan to fix it. Except…wait…here it comes…raise taxes…