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TN Tops in Combined State & Local Sales Tax Rate

News release from Tax Foundation:
Washington, DC, July 31, 2012–California and Indiana have among the highest statewide sales taxes in the country, but Tennessee and Arizona take top billing when local sales taxes are added to the calculation, according to a new analysis by the Tax Foundation.
Hawaii, Maine, Virginia, Wyoming, and Wisconsin have the lowest combined state and local rates. Delaware, Montana, New Hampshire, and Oregon do not levy sales taxes.
“Retail sales taxes are one of the more transparent ways to collect tax revenue, as statewide sales tax rates are generally well-understood by taxpayers. The local sales taxes collected in thousands of jurisdictions in 37 states, however, often are not,” said Tax Foundation economist Scott Drenkard. “These rates can be substantial, so a state with a moderate statewide sales tax rate can end up with a very high combined state and local rate.”
The states with the highest combined state-local rates are Tennessee (9.43 percent), Arizona (9.12 percent), Louisiana (8.86 percent), Washington (8.83 percent), and Oklahoma (8.68 percent). The states with the lowest non-zero combined rates are Alaska (1.79 percent), Hawaii (4.35 percent), Maine (5.00 percent), Virginia (5.00 percent), and Wyoming (5.18 percent).

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