Tennessee Has Highest Combined State-Local Sales Tax Rates According To Report

Tuesday, March 18, 2014

The nonpartisan Tax Foundation released on Tuesday, an updated report of sales taxes throughout the states in 2014. Using a population-weighted average of local sales taxes, the report details the combined state and local sales tax rates for each state and explains how sales taxes fit into a state’s overall tax structure.

Additionally, the report details the significant recent changes that have taken place in states’ treatments of sales taxes.

The key findings include:

  • 45 states collect statewide sales taxes.
  • 38 states collect local sales taxes.
  • The five states with the highest average combined state-local sales tax rates are Tennessee (9.45 percent), Arkansas (9.19 percent), Louisiana (8.89 percent), Washington (8.88 percent), and Oklahoma (8.72 percent).
  • Virginia, Arkansas, Ohio, and Maine have recently raised sales tax rates.
  • Arizona, Kansas, and the District of Columbia have recently cut sales tax rates.
  • Sales taxes rates differ by states, but sales tax bases also impact how much revenue is collected from a tax and how the tax effects the economy.
  • Differences in sales tax rates cause consumers to shop across borders or buy products online.

“Sales taxes are some of the most easily understood taxes because every time a consumer makes a purchase, they can see the rate on the receipt” says Tax Foundation economist Scott Drenkard.

The study addresses the fact that 38 states allow local governments to levy sales taxes within their jurisdiction. These local rates, when combined with the statewide rates, can result in substantially larger tax bites.

“Of course, sales taxes are just one part of an overall tax structure and should be considered in context,” said Mr. Drenkard. “For example, Washington State has high sales taxes but no income tax; Oregon has no sales tax but high income taxes. While many factors influence business location and investment decisions, sales taxes are something within policymakers' control that can have immediate impacts.”

Tor read the full report, go to State and Local Sales Tax Rates in 2014.


Beltone Announces Grand Opening In Hixson

Beltone is celebrating its grand opening for its newest store located at the Walmart Shopping Center, at 5756 Highway 153, Suite 116 in Hixson on  June 8  at 3 p.m. There is no cost to attend. There will be refreshments and snacks after the ceremony.  Officials said, "Come join us for this occasion with the Chattanooga Chamber of Commerce, and ... (click for more)

Chattanooga Women's Leadership Institute To Host Leadership Luncheon

Chattanooga Women’s Leadership Institute (CWLI) will host a Leadership Luncheon highlighting the importance of acknowledging mentors in the workplace on  Friday June 5, at The Chattanoogan from  11:30 a.m. – 1 p.m. One of the themes for 2015: recognizing and acknowledging the importance of mentors – even though our mentors may not look like us. ... (click for more)

Driver Of Fleeing Truck Almost Hits Patrol Vehicle Of Bradley County Sheriff Eric Watson; Gooch Arrested After Wreck

Deputies with the Bradley County Sheriff’s Office took an area man into custody on Friday afternoon after the stolen truck he was driving forced Sheriff Eric Watson to take evasive action to avoid striking the vehicle.   Sheriff Watson was patrolling in the area of Bates Pike when an alert was issued for a light blue F-150 pickup truck for a possible vandalism in progress. ... (click for more)

Fricks Pleads Guilty To Defrauding Cornerstone Community Bank In Dalton

Grady Wayne Fricks has pleaded guilty to conspiracy charges arising out of a scheme to defraud Cornerstone Community Bank in Dalton, Ga. “This defendant used his connection with a bank insider to obtain a fraudulently inflated loan,” said Acting U.S. Attorney John Horn. “Fricks’ ability to manipulate people to further his scheme left the bank and its stockholders shouldering ... (click for more)

Best City, Really? - And Response

I believe the success Chattanooga has had in the best outdoor city contest has got to be the "Ridge Cut" trail. To be able to sit in your vehicle while inching along right beside the old steel plant and, of course, the train yard where tankers sit loaded with hazardous gases. Then passing through one of the city's most active areas for gunfire, it's a win win.   It's ... (click for more)

Roy Exum: City Limits Worry Dogs, Cats

If you are a dog or a cat in the Chattanooga area, it is very important to know exactly where the city limits are. You need to know that if a stray animal is rescued in the city, it is taken to one of the finest animal shelters in all of America. But if the errant pooch or tabby is found in Hamilton County – outside the city limits -- it is taken to arguably the worst animal facility ... (click for more)