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1 Scott Drenkard, State and Local Sales Taxes in 2012 1 (2012)

handle is hein.taxfoundation/ffcjbxz0001 and id is 1 raw text is: February 14, 2012 No. 291 State and Local Sales Taxes in 2012 By Scott Drenkard Introduction Retail sales taxes are a transparent way to collect tax revenue. While graduated income tax rates and brackets are complex and confusing to many taxpayers, the sales tax is easier to understand: people can reach into their pocket and see the rate printed on a receipt. Less known, however, are the local sales taxes collected in 36 states. These rates can be substantial, so a state with a moderate state sales tax rate could actually have a very high combined state-local rate compared to other states. This report provides a population-weighted average of local sales taxes in each state in an attempt to give a sense of the statutory local rate for each state. Combined Rates Five states do not have a statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Of these, Alaska and Montana' allow localities to charge local sales taxes. In Alaska, high local rates in populous places like Juneau and Kodiak (5 and 6 percent, respectively) certainly increase the average local rate, but not enough to give Alaskans a higher combined rate than any state that charges a statewide rate. The five highest combined rates are Tennessee (9.45 percent), Arizona (9.12 percent), Louisiana (8.85 percent), Washington (8.80 percent), and Oklahoma (8.66 percent). Among the states with a statewide sales tax, the five with the lowest average combined rates are Hawaii (4.35 percent), Maine (5 percent), Virginia (5 percent), Wyoming (5.34 percent), and South Dakota (5.39 percent). The highest total sales tax rate in the United States is in Tuba City, Arizona, which has a combined rate of 13.725 percent. This rate is composed of a 6.6 percent state tax, a 1.125 percent Coconino county tax, and an additional 6 percent tribal tax levied by the To'Nanees'Dizi local government. 2, 3 Scott Drenkard is an economist at the Tax Foundation. 1 Due to data limitations, this study does not include local sales taxes in resort areas in Montana. 2 To'Nanees'Dizi Local Government Sales Tax Return. TG-FORN/ 600. http:iiwwwtndtaxcodecomi/forrns/amended FORM 600 07: 12-11.pdf

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