No mention made in the national press on-line about the state and local bonanza in income from increased sales tax receipts. The increase in costs of motor fuel and everything else means that sales taxes have gone up dramatically. In a jurisdiction with a sales tax of 7.25% a move upward in the US average price of gasoline from $2.13 per gallon in July 2021 to $4.20 in June 2022 reflects a change of of 15 cents in sales tax per gallon. For a nation that consumes about 9 million gallons of gasoline per day, adding up to an annual amount of 3 billion 285 million gallons, sales tax receipts would climb by just under half a billion dollars this year at a 7.25% rate. California has a state sales tax of 7.5%, counties and cities can add a local tax that can raise the total to 10%. Colorado has one of 2.9% and after state and local sales taxes are added in the state average is 7.44%. Five states have no statewide sales tax.
Friday, June 10, 2022
Inflation and Sales Tax
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