(Solution) - The sales tax rate applied to all purchases within a -(2025 Original AI-Free Solution)

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The sales tax rate applied to all purchases within a state was 0.04 (4 percent) throughout 2010 but increased to 0.05 (5 percent) during all of 2011. 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 2010 and 2011? What could account for this result?