WEEK 6 DISCUSSION 75-150 WORDS

1.    Calculating Sales Tax

Go to http://www.taxadmin.org/fta/rate/. It’s August and you need to buy school clothes and supplies for your five children. You live in the northwestern corner of Connecticut, within easy driving distance of both Massachusetts and New York State. What would the sales tax in each state be on a total of $830 worth of purchases? If shopping outside the state would cost around $20 in gas, in which state would this shopping trip cost the least?

Table 15.  Comparison of State/Local Retail Sales Taxes - 2014

Maximum Combined

State

Food Items[1] State Local State/Local

Exempt (E) Rate Rate Rate [3]

Alabama 4.0% 7.00% 11.00%

Alaska 7.50% 7.50%

Arizona E 5.6% 5.13% 10.73%

Arkansas 1.5% (1) 6.5% 5.50% 12.00%

California E 7.5% 2.50% 10.00%

Colorado E 2.9% 7.10% 10.00%

Connecticut E 6.4% 6.35%

Delware

Florida E 6.0% 3.00% 9.00%

Georgia E (1) 4.0% 4.00% 8.00%

Hawaii 4.0% 0.50% 4.50%

Idaho 6.0% 3.00% 9.00%

Illinois 1% 6.3% 3.75% 10.00%

Indiana E 7.0% 7.00%

Iowa E 6.0% 1.00% 7.00%

Kansas

6.2% 3.50% 9.65%

Kentucky E 6.0% 6.00%

Louisiana E (1) 4.0% 7.00% 11.00%

Maine

E

5.5% 5.50%

Maryland

E

6.0% 6.00%

Massachusetts E 6.3% 6.25%

Michigan E 6.0% 6.00%

Minnesota

E

6.9% 1.00% 7.88%

Mississippi 7.0% 1.00% 8.00%

Missouri 1.23% 4.2% 5.00% 9.23%

Montana

Nebraska

E

5.5% 2.00% 7.50%

Nevada

E

6.9% 1.25% 8.10%

New Hampshire

New Jersey E 7.0% 3.50% 10.50%

New Mexico

E

5.1% 3.56% 8.69%

New York

E

4.0% 4.88% 8.88%

North Carolina

E (1)

4.8% 2.75% 7.50%

North Dakota E 5.0% 3.00% 8.00%

Ohio

E

5.8% 2.25% 8.00%

Oklahoma 4.5% 6.50% 11.00%

Oregon

Pennsylvania E 6.0% 2.00% 8.00%

Rhode Island

E

7.0% 7.00%

South Carolina

E

6.0% 2.50% 8.50%

South Dakota 4.0% 2.00% 6.00%

Tennessee 5.25% 7.0% 5.00% 12.00%

Texas E 6.3% 2.00% 8.25%

Utah 1.75%(1) 6.0% 2.10% 8.05%

Vermont E 6.0% 1.00% 7.00%

Virginia 2.5%(2) 5.3% 0.70% 6.00%

WASHINGTON E 6.5% 3.10% 9.60%

West Virginia E 6.0% 1.00% 7.00%

Wisconsin E 5.0% 1.75% 6.75%

Wyoming E 4.0% 2.00% 6.00%

[1]  Food sales subject to local taxes

(2) Includes statewide 1.0% tax levied by local governments.

[3]  Aggregate local rate levied in the largest city in the state.  Includes local taxes for general purposes and those   

      earmarked for specific purposes (e.g. transit).  Taxes on specified sales (e.g. lodging or meals) are excluded.