Tuesday, July 19, 2011

Tax Foundation Map of State and Local Tax Rates

From the Tax Foundation, the map above shows the "state-local combined sales tax rate" by state, ranging from a low of 0% in Montana and Oregon, to a high of 9.44% in Tennessee, followed next by California with 9.08% and Arizona at 9.01%.  

11 Comments:

At 7/19/2011 10:26 PM, Blogger Jody said...

It says it's weighted by population to account for local variations, but VA state sales tax is 5% with sometimes greater than 5% added on locally.

 
At 7/19/2011 10:49 PM, Blogger Benjamin said...

I assume this chart refers to sales taxes. May wish to clarify.

 
At 7/19/2011 11:17 PM, Blogger Larry G said...

Virginia does not charge more than 5% sales tax but they do allow additional taxes on cigarettes, food and lodging in some localities.

Virginia is very much a Dillon Rule state and localities cannot institute any taxes without approval of the State General Assembly.

I also note the higher than California sales taxes for some states like Louisiana... WOW!

 
At 7/19/2011 11:18 PM, Blogger Larry G said...

Sales taxes in Va help fund education and law enforcement at the local level.

Looking at Montana and Oregon... how do they fund education and law enforcement if they do not have sales taxes?

Income taxes?

Va has BOTH sales taxes AND Income taxes.

 
At 7/19/2011 11:18 PM, Blogger Larry G said...

Sales taxes in Va help fund education and law enforcement at the local level.

Looking at Montana and Oregon... how do they fund education and law enforcement if they do not have sales taxes?

Income taxes?

Va has BOTH sales taxes AND Income taxes.

 
At 7/20/2011 5:51 AM, Blogger Jet Beagle said...

Benjamin: "I assume this chart refers to sales taxes"

Mark did not use the term "sales tax" his text. The chart, however, does have a title which you may have overlooked.

 
At 7/20/2011 5:55 AM, Blogger Jet Beagle said...

This chart is interesting, but misleading. Tennessee does have a high sales tax, but no income tax.

IMO, a more meaningful chart would be total state and local tax burden - including sales, property, income, and all other taxes - as a percent of state GDP. I recall seeing such a chart, but I don't recall where.

 
At 7/20/2011 6:07 AM, Blogger Jet Beagle said...

The Tax Foundation also has a map of total state and local tax burdens. It shows these states as having the lowest tax burden as a percent of incomes:

Alaska - 6.3%
Nevada - 7.5%
South Dakota - 7.6%
Tennessee - 7.6%
Wyoming - 7.8%

Here's the states with the highest tax burdens:

New Jersey - 12.2%
New York - 12.1%
Connecticut - 12.0%
Wisconsin - 11.0%
Rhode Island - 10.7%

The chart is based on 2009 data, and its possible that Wisconsin has now been displaced on the list of 5 highest tax burdens. If so, California would have moved up into that group.

 
At 7/20/2011 8:49 AM, Blogger Larry G said...

In Virginia, the local tax burden varies by county because about 1/2 the local revenues come from property tax which can be very low in rural counties and very high in urban counties.

In Virginia - generally about 1/2 of the schools funding comes from the state and 1/2 from the locality.

Of course ALL of it comes from taxpayers paying local and state taxes.

 
At 7/20/2011 8:59 AM, Blogger Jet Beagle said...

Larry G: 'ALL of it comes from taxpayers paying local and state taxes."

I agree. But the effect of each type tax is not the same. Property taxes tend to discourage capital investment. Graduated income taxes motivate high income workers to relocate to other states. Sales taxes, on the other hand, are most visible to those who ultimately bear the burden.

As I see it, sales taxes are the least harmful to economic growth but the most harmful to politicians' desire for power.

 
At 7/20/2011 3:09 PM, Blogger Junkyard_hawg1985 said...

Jet,

Thanks for sharing the link. Tennessee moves from the #1 sales tax state to #47 overall. Since TN is a high tourist state, this makes sense. As former governor Ned Ray McWherter said: "I'd rather pick a Yankee than pick cotton."

 

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