The sales tax rate applied to all purchases within a state was 0.04 (4 percent) throughout 2019

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The sales tax rate applied to all purchases within a state was 0.04 (4 percent) throughout 2019 but increased to 0.05 (5 percent) during all of 2020. The state government collected all taxes due, but its tax revenues were equal to $40 million each year. What happened to the sales tax base between 2019 and 2020? What could account for this result?

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