Local Sales Taxes are Too Big To Forget

September 23, 2011 Taxation in USA

Sales Taxes in the USAWASHINGTON – Local sales taxes imposed in the USA can contribute a very significant portion to the overall sales tax levels charged on consumer items.

The new study, which was published on September 22nd by the non-partisan research group Tax Foundation, has examined state and local sales taxes in the USA, to find that nearly 75 percent of states impose local sales taxes, which are often overlooked by consumers. In some cases, the average local sales taxes can more than double the state’s combined sales tax rate.

According to the study, the highest combined sales tax in the US is in Tuba City, Arizona, with a rate of 13.725 percent. The tax consist of a 6.6 percent state tax, a 1.125 percent tax levied by Coconino county, and a 6 percent local tax levied by the To’Nanees’Dizi tribal government. On a statewide level, the highest combined sales tax is in Tennessee, with a 7 percent state tax and an average local tax rate of 2.43 percent. Using a population weighted average, the study found that local sales taxes in the states of Louisiana, Alabama, Colarado and New York outstrip state taxes, more than doubling the combined rate in every case.

The lowest combined sales tax rates in the country were recorded in the states of Delaware, Montana, New Hampshire and Oregon, all of which do not levy state sales taxes, or allow for local sales taxes. The state of Alaska has the next lowest combined rate, with a 1.74 percent average local sales tax and no state taxes.

Photo by functoruser