Updated State and Local Option Sales Tax

tax foundation ^ | 10/16/09 | Kail Padgitt

[TornadoAlley3]

Fiscal Fact No. 196

Introduction

Sales taxes are paradoxically transparent and non-transparent. A taxpayer can easily see how high the tax is by looking at the receipt for any purchase. It's hard to imagine a more transparent tax.

[TornadoAlley3]

[seowulf]

Not surprising that Washington is in the top five considering there is no income tax (state constitution prohibits it). I think Tennessee is another without an income tax.

What’s California’s excuse?

[Lurkina.n.Learnin]

“What’s California’s excuse?”

Pie in the sky ain’t free.

[alancarp]

The chart seems somewhat flawed - probably due to the 'local option' complexities that have been added lately. I tried to look up Alabama's rates, for instance and they're just about too complicated to figure out (separate categories for Amusement, Auto, Farm, General, Manufacturing, Vending, Lodging, Rental (Auto General, and linens), plus Consumer's use). But let's just say that when I go to the grocery store or Walmart, it's 8 or 9%, depending on the items. Maybe the posted '6.15%' represents an average of all categories, but where I live, I'm seeing 8 and 9.

I also have receipt from the Charlotte airport for a sandwich that cost me 9.2% last week.