Over 485 Cities Raised Sales Tax Rates in 2007

[cynatnite]

BERWYN, Pa.--(BUSINESS WIRE)--In 2007, 485 U.S. cities increased their sales tax rate. Of those, 178 were newly imposed city tax rates and 307 were straight increases in existing city tax rates. This represents the largest annual expansion in the number of cities who either increased their existing rate or initiated a sales tax in the past four years, according to the annual sales tax rate study released today by Vertex Inc.

North Courtland, Ala., had the largest increase nationwide, rising from a 1.0 percent sales tax rate to 4.0 percent. Seldovia, Alaska, experienced the second largest increase from 2.0 percent to 4.5 percent, followed by Fredonia, Ariz., and Watts, Okla., with increases from 2.0 percent to 4.0 percent.

Several large U.S. cities also raised their sales tax rates between 0.1 and 0.2 percent in 2007, including Boulder, Colo.; Phoenix, Ariz.; St. Louis, Mo., and areas of Denver, Colo. and Seattle, Wash. States with the most number of city rate increases included Colorado, Missouri, Texas and Washington.

Also in 2007, Catawba Indian Reservation, South Carolina, joined Wrangell, Alaska, in having the highest city sales tax rate of 7.0 percent. South Carolina was the only state to raise its state-wide sales tax rate, from 5.0 percent to 6.0 percent.

“It is evident from the more than 450 cities raising sales tax rates last year that local governments see tax revenue as a viable part of the solution in addressing revenue shortfalls. It is especially critical that corporate taxpayers stay abreast of these sales tax rate adjustments and keep close records of all their transactions in order to remain in compliance and be prepared for potential state audits,” says John Minassian, Vice President of Tax Content Development.

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[Captain Hilts]

1. Like the gas tax, they are the most REgressive taxes out there. God forbid we raise income taxes!

They're PROgressive!

[frazzled]

2. Chicago sales tax now 10.25%

One of if not the highest in the nation.

We could give a three-month hiatus on the (4%) federal gas tax, but then Cook County would probably raise the sales tax to 11%. People don't get this: you can rob Peter, but you have to pay Paul--if you don't want the roads and bridges to collapse ... and the public transit fares to rise to $3.00.

[Captain Hilts]

3. Income taxes are PROgressive. Sales and payroll taxes REgressive. Raise income taxes! nt