By Tim Gallen | Phoenix Business Journal
This probably comes as no surprise to Arizonans, but we have some of the highest combined state and local sales tax rates in the country, according to a new report from the Tax Foundation.
In fact, we have the second-highest combined rate at 9.16 percent, behind only Tennessee, whose residents have a 9.44 percent combined sales tax rate. Louisiana (8.87 percent), Washington (8.86 percent) and Oklahoma (8.67 percent) round out the top five.
“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,” Tax Foundation economist Scott Drenkard said in a press release announcing the foundation’s findings. “Less known, however, are the local sales taxes collected in 37 states. These rates can be substantial, so a state with a moderate statewide sales tax rate could actually have a very high combined state-local rate compared to other states.”
Related: Arizona State University Economist Dennis Hoffman discusses Gov. Jn Brewer’s sales tax simplification proposal on “Horizon.” [VIDEO]