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
LATEST FINANCE HEADLINES
The Metro Areas Most Lagging Behind in the Recovery1 day ago
Moody's Lowers Kansas' Credit Outlook1 day ago
With Bipartisan Support, Colorado Passes Largest Budget Ever1 day ago
Alabama’s One-Man Pension Show1 day ago
Texas, Feds Strike Short-Term Deal on Medicaid Funding2 days ago
Georgia Governor Signs $23.7 Billion Budget2 days ago