States on average derive about 49 percent of their revenue from sales taxes, so holiday shopping results are important for state treasuries. Unfortunately, the early read on holiday retail sales looks pretty bleak. Reuters reports (emphasis mine):
As the U.S. holiday season winds down, retailers are left to hope that post-Christmas sales can help salvage their worst performance since 2008, preliminary data showed.
Holiday-related sales rose 0.7 percent from October 28 through December 24, compared with a 2 percent increase last year, according to data from MasterCard Advisors SpendingPulse.
Meanwhile, online retail sales, in which 46 states do not require the retailer to collect sales tax, surged 16 percent in the comparable period according to ComScore. There is no Christmas cheer for state treasurers in that data.
Nineteen states derive 50 percent or more their revenues from sales taxes, and eight derive over 60 percent, according to the U.S. Census: