Sales tax audits are ripe sources of potential revenues for desperate state taxing authorities. With heightened strains on the economy, strains on state revenue have been increasing and in fact, many state governments are facing massive shortfalls resulting from the increase in remote (non-taxable) online sales, a slumping retail sector, housing problems and the resulting decline in property tax revenues.
Sales tax represents a major portion of many states' revenue. As of 2007, these 35 states rely on sales tax for more than 25% of their total revenue.
