States Try to Tax More Services as Coffers Deflate

Stateline: Will plumbers, lawyers and hot-air balloon operators be forced to pitch in to solve state and local government revenue shortfalls?

Sales taxes today mainly, though not exclusively, hit sales of tangible goods like cars and couches. Faced with the worst budget crisis in a generation, many states are looking to expand sales taxes to services, such as lawn care or accountants' advice. The goal, legislators say, is to broaden the tax base to cover a broader swath of the economy as traditional sources of tax revenue decline. Read Article

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