The other 12 states could collect $1.5 billion, he said.

These seven states collect most of the state tax revenues in the country.

"We will lose more in revenue than many states collect," he said.

There is, in theory, no reason why the state should not collect a great deal more tax than it does.

Last year, the state collected $112 million from gaming, an effective tax rate of 14 percent.

By the end of his term, the state had collected over $1.5 million in claims.

The system applies only at the federal level, as the individual states do not collect income taxes.

But, he said, federal officials would help the states collect through a "reconciliation process," the details of which were still being worked out.

The state does not collect a penny of property tax.

The state collects about $40 million a year from such accounts.