PROVIDENCE– Rhode Island’s state sales tax stays among the greatest in the nation, according to a brand-new report by the Tax Structure.
The Ocean State’s 7% state sales tax was the 2nd greatest of states across the country since July 1, connected with Indiana, Mississippi and Tennessee, according to the analysis of state and regional sales taxes released July 18.
Nevertheless, Rhode Island’s absence of regional sales tax implies its combined state and regional tax rate ranked No. 24 out of the 50 states and the District of Columbia, according to the report.
The $13.6 billion state spending plan for the financial 2023 year that started July 1 keeps the very same sales tax rate as the previous year.
Cuts to state sales tax rates are uncommon– legislators usually cut earnings tax rates rather, according to the report, which implies annual rankings stay constant. New Mexico was the only state to lower its sales tax rate in 2022– down an eighth of a percent– marking the very first state sales tax cut in 5 years, according to the report.
The rankings just consider the tax rates however not what those taxes are used to, which can differ extensively throughout states. For instance, some states do not use sales taxes to groceries, or clothes.
The most recent rankings were computed based upon quarterly state and regional sales tax details, in addition to 2010 census information.
Nancy Lavin is a PBN personnel author. Contact her at Lavin@PBN.com.
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