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
The Week in Public Finance: Hartford in Crisis, Pension Rates Move Down and More2 days ago
Affordable Housing Required for Every Town, Rules New Jersey Supreme Court3 days ago
Alaska Governor: Inaction Has Driven Budget Problems to 'Crisis' Levels3 days ago
Indiana's New GOP Governor Calls for Tax Hike to Fund Roads4 days ago
Nevada Governor Pushes Pot Tax on Legislators4 days ago
Moody's Settles With States for $863.7M Over Misleading Ratings5 days ago