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Sales Tax Rates in Major Cities, Midyear 2021

Table of Contents Key Findings There are over 11,000 sales tax jurisdictions in the United States, with widely varying rates. Among major cities, Tacoma, Washington imposes the highest combined state and local sales tax rate, at 10.30 percent. Five other cities—Fremont, Los Angeles, and Oakland, California; Chicago, Illinois; and Seattle, Washington—are tied for the second […]

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Even Within States, Tax Treatment Differs by Industry

Businesses’ tax liability can differ markedly across states, and policymakers often pay attention to this competitive tax landscape. What is less often remarked upon, however, is the variation of tax treatment within a given state. Different industries and activities can face radically different tax burdens within the same state due to non-neutralities in the tax […]

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State and Local Sales Tax Rates, Midyear 2021

Table of Contents Key Findings Forty-five states and the District of Columbia collect statewide sales taxes. Local sales taxes are collected in 38 states. In some cases, they can rival or even exceed state rates. The five states with the highest average combined state and local sales tax rates are Louisiana (9.55 percent), Tennessee (9.547 […]

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Property and Sales Taxes Are a Major Driver of Corporations’ State and Local Tax Burdens

When most people think about “business taxes,” the corporate income tax is usually the first that comes to mind. Corporate income taxes generate sizable tax burdens for businesses—especially at the federal level—but at the state level, the corporate income tax is just one of many taxes businesses pay. For many companies, state corporate tax burdens […]

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Louisiana Fiscal Session Finishes Strong with Tax Reform

It took until the last day of the session, but Louisiana lawmakers succeeded in passing a tax reform package Thursday that would simplify a complicated tax code and make the state more economically competitive. Because these measures are reliant on constitutional amendments, voters will ultimately decide the success of the plan in October. However, if […]

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A Comparison of the Tax Burden on Labor in the OECD

Table of Contents Key Findings Average wage earners in the OECD have their take-home pay lowered by two major taxes: individual income and payroll (both employee and employer side). Value-added (VAT) and sales taxes also place a tax burden on take-home pay used for consumption. Before accounting for VAT and sales tax, the average tax […]

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How Much Does Your State Collect in Sales Taxes Per Capita?

This week’s map looks at state and local sales tax collections per capita. Forty-five states and the District of Columbia have state-levied sales taxes. Five states—Alaska, Delaware, Montana, New Hampshire, and Oregon—do not collect sales taxes at the state level, although Alaska allows localities to impose local sales taxes. In fiscal year (FY) 2018, the highest state […]

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What Location Matters Can Tell Us About State Tax Competitiveness

Don’t expect data centers to blossom in the plains of Kansas: a new data center’s effective tax rate in the state is 21 times what would be paid by a new manufacturer with similar profits. In the median state, that data center would face only one-quarter the tax burden it does in Kansas. Meanwhile, newly-established […]

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Location Matters 2021: The State Tax Costs of Doing Business

Note: A landmark comparison of corporate tax costs in all 50 states, Location Matters calculates and analyzes the tax burdens of eight model firms: a corporate headquarters, a research and development facility, a technology center, a data center, a shared services center, a distribution center, a capital-intensive manufacturer, and a labor-intensive manufacturer. Each firm is […]

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Outlier No More: Kansas Adopts Tax Reform with Wayfair Safe Harbor, GILTI Exclusion

Legislators in Kansas have had enough of their state being a tax policy outlier. After three years of deliberations, more than two-thirds of members in both the Senate and the House enacted tax reform and relief legislation Monday over the veto of Gov. Laura Kelly (D). Senate Bill 50 puts the state on firm legal […]