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Tax Foundation says Arkansas ranks No. 2 in highest combined state-local sales tax

Posted: March 18, 2014 - 12:55pm

Arkansas has the second highest combined state-local sales tax rate in the United States for 2014, according to a report released this morning from the nonpartisan Tax Foundation.

Arkansas’ combined state-local sales tax rate comes in at 9.19 percent, the second highest rate under Tennessee with the highest combined state-local sales tax rate of all 50 states at 9.45 percent.

Arkansas’ state tax rate is 6.50 percent, ranking No. 9 overall, but the state comes in at No. 2 when combined with an average local tax rate of 2.69 percent, bringing the combined rate to 9.19 percent.

Using a population-weighted average of local city, county and municipal 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.

“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,” adds 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.”

(Staff writer Michelle Corbet can be reached by email at michelle.corbet@thecabin.net or by phone at 505-1215. Send us your news at www.thecabin.net/submit)

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Igor Rabinowitz
8443
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Igor Rabinowitz 03/18/14 - 01:44 pm
1
1
Oh come on!

"Tax Foundation"

A conserva-leaning shill group

"US economist Paul Krugman has characterised the Tax Foundation as "not a reliable source" while criticizing a report by the Tax Foundation comparing corporate tax rates in the United States to those in other countries.[45] Krugman has also accused the Tax Foundation of "deliberate fraud" in connection with a report it issued concerning the American Jobs Act.[46]"

It's known for poor analysis and self-serving reports. Just look at its history.

ARBEAR
1268
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ARBEAR 03/18/14 - 02:15 pm
4
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When you add Tab's hamburger

When you add Tab's hamburger tax to the already too high tax rate,we pay more than 10% in sales taxes. Then Tab blows the money on his pet projects.

conwaygerl
5216
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conwaygerl 03/18/14 - 04:28 pm
8
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second in sales tax

But #1 in Christmas tree height!

johnb
433
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johnb 03/18/14 - 03:03 pm
1
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Can You Say

Amazon.com?

Conwegian
101
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Conwegian 03/18/14 - 03:29 pm
2
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still owe taxes!

News flash, johnb. If you buy on amazon you still owe the taxes. It's called the consumer use tax.
Here are the rules:
Businesses and individuals should pay Use Tax if they:
Purchased items outside Arkansas that would be taxable if purchased in Arkansas (including items from catalogues, TV advertisements, magazines, the Internet, etc.)
Use, store, consume, or distribute these items in Arkansas, and
Have not paid Arkansas sales tax or an equivalent amount to another state.

I know you want to be honest on your taxes, so you can find the form here: http://www.dfa.arkansas.gov/offices/exciseTax/salesanduse/Documents/cu1.pdf

Elmer Fudd
3103
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Elmer Fudd 03/18/14 - 04:56 pm
1
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The State

only has one form as none has ever used one before so you will have to print one johnb.

lachowsj
5029
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lachowsj 03/18/14 - 07:01 pm
2
2
Easily solved

Exempt food and clothing from sales tax. Raise income, property and estate taxes to make up the difference. Income neutral, sales tax rate goes down, Tax Foundation no longer has anything to squawk about.

DanCDaves
2781
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DanCDaves 03/28/14 - 10:55 am
1
2
Whoa there

Let's take it slow. Start by raising interest rates...then inflation....then prices....then all the rest of the stuff that just magically makes life better.

Lilly03
478
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Lilly03 03/19/14 - 10:18 am
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Yet sadly we are still

Yet sadly we are still lacking in several ammenities that are typically purchased with said tax collections.

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