Because the federal income tax is the biggest and usually the first tax we see listed on our pay stubs, we naturally tend to focus on it.

But state government takes a bite out of our spending money, too. Bankrate will help you stay on top of what your localities are collecting -- income, sales, personal property or investment taxes, or often a combination of all.

Here's a look at some recent tax actions across the nation.

Internet sales produce state tax losses
Online purchasing continues to grow, and state treasuries are big losers in the e-commerce world, according to a national research firm study.

Forrester Research reports that of $13 billion in taxable retail goods sold online last year, states collected sales taxes on just slightly more than 20 percent of the sales -- a $525 million loss to state coffers.

Taking the biggest monetary hits were California, which lost $73.8 million; Texas, $51.9 million; Illinois, $32.6 million; Florida, $30.3 million; and New York, $26.6 million.

Forrester's study also found that only 22 percent of the 8,900 online consumers surveyed shop around to avoid paying sales taxes online. Shipping charges are much more important than taxes.

Taxation of Internet commerce continues to be a flashpoint between the states, with technology-flush areas like California and Texas opposed to uniform taxation -- despite the Forrester tax-loss findings -- while other regions see such taxes as a boon to cash-strapped treasuries.

Forrester experts side with the pro-taxation group. In releasing the study, Steven J. Kafka, an analyst of e-business, said, "Internet, catalog and brick-and-mortar sales should all be taxed the same -- based upon a buyer's physical location. New technology will enable companies to easily collect taxes across multiple locations.

"Also, retail taxes won't keep consumers from shopping online because they seek convenience, selection and added services -- not a tax break."

Tax on out-of-state calls passes in Mississippi
JACKSON -- Some long-distance calls in Mississippi will be taxed beginning July 1, but in return state legislators will require telecommunications companies to lower local residential and business phone bills.

Without debate, the Mississippi House overwhelmingly passed a bill assessing a 5.5 percent sales tax on out-of-state calls and Gov. Ronnie Musgrove has signed the bill into law. The tax is expected to raise about $26 million a year, which will go to a special Mississippi Tax Commission fund. The commission then will turn that money over to BellSouth to reduce local customers' rates by a matching amount.

The measure was a compromise between lawmakers and communications companies, which had sued or filed tax protests over a state law requiring they pay taxes on 30 percent of their assessed property. Smaller companies pay taxes on only 15 percent.

The companies have agreed to drop the property tax challenges, which legislators feared the state might lose. The phone tax bill does not change the property tax levels.

$1.9 million in tax relief for some Arkansas filers
LITTLE ROCK -- Filers of 45,000 state income tax returns in the early 1990s may be eligible for up to $1.9 million in refunds, thanks to a preliminary county chancery court ruling.

The court found unconstitutional a state law that prohibited non-Arkansas residents who worked in the state from participating in a low-income tax relief program. The refund money includes $1 million in taxes paid in 1991-93, plus another $900,000 in interest. A final order must be filed, and refunds will be delayed if the state appeals the court's finding.

The taxes in question were associated with a low-income tax relief program that lets taxpayers use reduced tax tables rather than the standard ones if they meet specific criteria. One requirement was that taxpayers had to be Arkansas residents. This excluded residents of Arkansas border states who worked in the state and filed Arkansas tax returns.

State lawmakers eliminated the residence requirement in 1995. State finance officials also administratively removed the residency restriction in 1994. This meant that only filers in 1991, 1992 and 1993 were denied use of the lower tax tables.

Colorado House approves double tax cut
DENVER -- Coloradans are a step closer to lower income and sales taxes.

The Colorado House on Feb. 22 overwhelmingly approved bills that would set the income tax at 4.65 percent, down a tenth from the current 4.75 percent; and that would cut the sales tax from 3 percent to 2.85 percent.

Both tax cuts are permanent, meaning that the legislature would have to pass additional measures if they want to change the rates in the future. The bills now go to the Senate.

Oklahoma might be OK for shoppers in August
OKLAHOMA CITY -- Buying back-to-school clothes may be a bit cheaper this year for Oklahomans.

State legislators are calling for a sales tax holiday on clothing during the first weekend of August each year. The tax holiday would begin at noon on the first Friday in August and end at noon the following Sunday. Shoppers during this time would not be charged any city or state sales taxes on clothing purchases of less than $100 per item.

Both Oklahoma House and Senate committees have approved the bill, and consideration of the measure is expected by the full legislative bodies shortly.