State and local sales tax rates inch higher
The national average sales tax rate rose to a record high in 2004. The combined rates of local and state government sales taxes reached 8.587 percent, a slight up tick from 8.5336 percent in 2003, according to a report from Vertex, a tax technology company.
The rate has climbed for the past four years, and the upward movement continued in 2004 despite a record number of tax-rate decreases. Much of the upward pressure on the tax rate can be attributed to budget difficulties that were pushed downward from the federal government. Election-year politics most likely contributed to the high number of tax decreases (160), but increases in other places pushed up the average.
The highest state sales tax rate is 7 percent, which is on the books in Mississippi, Rhode Island and Tennessee. The city with the combined highest rate is Arab, Alabama, where the total tax on sales is 12 percent.
Join the Discussion
After you comment, click Post. You can enter an anonymous Display Name or connect to a social profile.
LATEST FINANCE HEADLINES
After a Few Years Afloat, Pension Plans Sink2 hours ago
Budgetless Alabama Begins Special Session1 day ago
Are Governments 'Paying for Failure' With Social Impact Bonds?3 days ago
States Turn to Smokers for Band-Aid Budget Fixes3 days ago
Congress Approves Yet Another Short-Term Highway Funding Bill4 days ago
Kansas Governor Uses Federal Aid to Help Offset $62.6 Million Budget Cuts4 days ago