LITTLE ROCK, Ark. --- Even as they struggle amid the slowing economy, some states are giving retailers back about $1 billion in sales taxes each year as reimbursement for acting as tax collectors, according to a study released Tuesday.

The Washington, D.C.-based watchdog group Good Jobs First, which is critical of government handouts to private enterprise, said 26 states, including Georgia and South Carolina, allow for compensation to companies for collecting sales tax for the government. The study says 19 states do not make such payments, and five do not impose a sales tax.

An Internet sales tax bill before Congress also would provide reimbursement to companies, but it doesn't stipulate how much.

Group research director Philip Mattera said the issue is important because states' budgets are tightening, making budget cuts a possibility, even as they are giving away much-needed revenue.

Illinois gives the most to companies at $126 million per year. Texas is next at $89 million, with Pennsylvania at $72 million and Colorado at $68 million.

States don't report how much individual companies take in, but Good Jobs First estimates that Wal-Mart Stores Inc., the world's largest retailer, gets $60 million a year for collecting sales taxes.

The study cites Wal-Mart, which reported profit last year of $12.73 billion on revenue of $378.8 billion, as saying it took in $12.8 billion in sales taxes for states in 2007.

Wal-Mart spokesman David Tovar said the company is in the same category as other retailers who take part in the programs.

During the eight-month study, Mr. Mattera and researcher Leigh McIlvaine evaluated the compensation programs of each state that offers a giveback plan. Mr. Mattera said some local taxing agencies offer similar breaks.

Retailers are typically compensated by factoring a percentage of sales tax collected. Eight states allow less than 1 percent of tax collected to return to the retailer, while others go as high as 5 percent. Florida allows $360 per store. North Dakota allows a total of $1,020 and Michigan $240,000.