What state has the lowest state sale tax?

Libertine · Jul 5, 2003

Poster:

You need to check if out of state purchases are hit with any other taxes (other than the sales tax issue). You may not have any, but here in Missouri they have an "intangibles" tax which might, or might not, apply - if they don't get you one way, they will certainly try another. Also, as others have mentioned, you need to check reciprocity agreements. Finally, if you buy out of state what about service? If your local dealer has to service, and if you're subject to some state/local "tax" would they report you?

Bottom line - there's more to the purchase than simply the issue of paying a sales tax upfront with the purchase.

JEH

JohnMiller3 · Jul 5, 2003

Re: What state has the lowest sale tax?

<font color="blue">...slip. Just curious, was it intentional?... </font>

No slip, yes I'm curious, yes it was an intentional question... /forums/images/graemlins/smile.gif

Justaplain · Jul 5, 2003

Don't forget Nh has an interest and dividend tax which to me is an income tax. bcs

HayDR · Jul 5, 2003

Cost of living comparison and salary calculator
There is NO tax on a tractor for farm use in TN.

Chief · Jul 5, 2003

CCI, VERY interesting link on the cost of living. Thank you for posting that. The dealer I purchased my John Deere from asked me for my USDA farm #. Tennessee has been cracking down on sales tax avoidance. They will make the dealer pay the sales tax if they determine that sales tax should have been paid. I think that is apretty subjective and inconsistent way of sales tax enforcement. The state of TN drove alot of business out of the state by raising the sales tax that high.

HayDR · Jul 5, 2003

Sales Tax is the most equitable tax, so everyone pays some taxes. Income tax is redistribution of wealth, socialism.

EagleEye · Jul 5, 2003

Re: What state has the lowest sale tax?

hahahaa... I live in NY and while we may pay less than 10% sales tax (8.25% here in Broome county), we probably pay much more in income taxes... /forums/images/graemlins/shocked.gif /forums/images/graemlins/blush.gif /forums/images/graemlins/blush.gif

rozett · Jul 6, 2003

CCI..... I agree completely! I wanted to post that earlier, but didn't want to 'hijack' the thread.

Another way to look at it is that sales tax is a consumption tax. The more you buy, the more you pay....and you can always exempt the basics, like food and clothing. But the bleeding heart liberals think it is shameful to work your a$$ off and increase your income, so they invented 'progressive' income tax. /forums/images/graemlins/mad.gif /forums/images/graemlins/frown.gif

Libertine · Jul 6, 2003

Re: What state has the lowest sale tax?

JohnMiller3:

Sorry, didn't mean was your question intentional. Just whether the slip was.

JEH

Libertine · Jul 6, 2003

Chief:

<font color="blue">The state of TN drove alot of business out of the state by raising the sales tax that high. </font>

ALL taxes of whatever stripe are incentives (or, if you prefer, disincentives) to productive activity. High sales taxes encourage lower consumption (or efforts to avoid the tax). High income taxes encourage efforts to reduce income (or hide it). High property taxes encourage less property improvements. Licensing taxes (and regulations of all sort) encourage increased costs of production. And so forth. Nearly ALL taxes reduce the amount of wealth that would otherwise be produced in one way or another.

Based on some calculations I have made comparing standard of living 100 years ago and today, including consideration of factors such as physical output per man hour, I estimate the drag on the economy (the amount of wealth looted from the productive people) as approximately 65%-75%. Put on simpler terms, without your current tax/regulate system if you can afford one tractor now, you could afford 3 or 4 tractors without that system. But, never fear, the world's been through it all before. The Roman Empire was strangled by taxes and regulations, an increase in dependency of the population, a decrease in the acculturalized of barbarians who settled in the Empire, and so on, (they had many similar problems they were unwilling to deal with - just as we do - including, for example, the demise of the small farmer) to the point it could no longer resist the barbarian attacks. We are simply going through the same process again. Like them, we are more likely to go out with a wimper than a bang (over some generations). Of course, we are raising our own barbarians internally.

My point in the response to the original question about sales taxes was that they are going to stiff you one way or another and it is often simpler (although sometimes a bit more expensive in money) to go with the flow. They're more apt to leave you alone if you pay your protection money. Freedom from harrasssment has a certain value too. TN may have a higher sales tax than Missouri, but it was reported in this thread they have no income tax. One negative offsetting one positive. Results, in the end, comparable rip-off totals. How is the property tax in TN? How about zoning and regulation? Property taxes (at least in my area) are spiraling upward. Regulation/zoning is somewhat moderate (at least in rural area). The reason I'm asking is that I sort of like TN at least the few times I've been there.

JEH