States had a prosperous year overall in 2000 with record surpluses and tax revenue growth. But there were signs of weakening economies in many states as the year drew to a close, and a new report suggests a major slowdown in tax collections could just be the tip of the iceberg. more

Millions of Ohioans have long neglected to pay sales taxes on mail-order goods, and the state government has let them get away with it. But this year is different. As Ohioans hunch over state income forms with an April 15th deadline, they're noticing a new line -- one that asks how much they spent on untaxed Internet and mail catalogue purchases last year and tells them to pay the five percent state sales tax on the total. Ohio is just the latest of 16 states trying to collect what they consider "lost" tax revenue. Experts estimate that states are missing out on at least $5 billion in sales tax money every year, because out-of-state Internet retailers rarely charge sales taxes. more

Signs of a slowing U.S. economy are cropping up in more and more states. Among the latest to feel the pinch are Maine, Massachusetts, Indiana, Tennessee, Louisiana, Virginia and Mississippi. more

Indications that the nation's economic strength is diminishing are beginning to appear on the state level. In Maine, where budget officials and lawmakers have grown accustomed to surplus revenues in the $300 million to $400 million range, only $44 million extra is projected for the state's next two-year budget cycle, officials disclosed this week. more

A controversial tax-cutting amendment continues to show support from a majority of Colorado voters, a recent poll shows, but support is down from the numbers shown early in the 2000 election year. That's good news to most state and local government officials opposing it, but prime sponsor Douglas Bruce, a Colorado Springs businessman and perpetual government critic, is still optimistic the plan will prevail on Nov. 7. more