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Arizona, Elections, Politics

WE’RE #1: Arizona has highest sales tax burden in the U.S.

Posted: October 10, 2012 at 6:40 pm   /   by

WE’RE #1!  WE’RE #1!!  WE’RE #1!!!

But this isn’t cause for celebration:  Arizona has the highest sales tax burden in the nation.

From Phoenix Business Journal:

Arizona has the highest sales tax burden in the country and ranks 27th among U.S. states for overall tax burden, according to a new report by the Tax Foundation.

The conservative group ranks Wyoming, South Dakota and Nevada as having the lowest tax burdens for businesses and residents. New Jersey has the highest tax burden, followed by New York and California.

Arizona’s state sales tax sits at 6.6 percent and there are also local sales levies that add another 2.5 percent or more.

The Tax Foundation also factors in cigarette, tobacco, alcohol and other consumption taxes, and says those combined rates give Arizona the highest sales tax rate in the country at more than 9 percent.

Arizona’s sales taxes are in the forefront this election cycle with Proposition 204 seeking to permanently keep the state sales tax rate at 6.6 percent. It was raised from 5.5 percent in 2010 primarily to fund education, but that temporary hike runs out in 2013.

Education groups and unions, roadcontractors and some business groups including the CEO-heavy Greater Phoenix Leadership support Prop. 204.

The measure keeps the 6.6 percent sales tax in place and also earmarks that money for highway construction, education and other spending areas.

Arizona Gov. Jan Brewer (who backed the temporary increase two years ago), State Treasurer Doug Ducey and some other business groups including the Arizona Chamber of Commerce and Industry, Greater Phoenix Chamber of Commerce and National Federation of Independent Business oppose Prop. 204.

Hannah Thoreson

Hannah Thoreson is a science and technology writer based in northern Virginia. She earned a physics degree from Arizona State University in 2012 and has been causing trouble ever since.

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WE'RE #1: Arizona has highest sales tax burden in the U.S.