About 56 percent of the state's budget comes from a 6.25 percent sales tax. That makes the total tax in Dallas 8.25 percent, the most allowed under the Texas constitution. Dallas' only other major revenue source is property tax. But Virginia Gov. James Gilmore, chairman of the advisory panel, doesn't think states need sales tax revenue from online transactions. Even greater sales tax revenue.
States are presently awash in money.
They have big surpluses. They're cutting taxes and they still end up with big surpluses. Even at the time that e-commerce is growing, states and localities are getting more money. He says cities aren't just going after additional revenue. He's afraid of losing what he already has.