Sales Taxes (nationwide) going up.

The Rockefeller Institutes reports that total State Tax collections were up 6.1% year-over-year from 2012 to 2013 (through the end of 3^rd quarter, 2013). In fact, Q3 (2013) was the 15^th consecutive quarter in which revenues were up. Of these revenues, personal income revenues rose 5.3%, sales revenues rose 5.6% and corporate tax revenues rose 1.9%.

These significant increases in personal income revenues and sales tax revenues indicate growth of both personal income and consumption from 2012 to 2013 and the increases in revenues bode well for State government financing.

Resource: http://www.ftportfolios.com/Commentary/MarketCommentary/2014/1/13/week-of-january-13th

Washington State: highest for per capita sales tax collections

The Tax Foundation has recently published a fantastic "State and Local General Sales Tax Collections Per Capita" map (see below).

Washington came in #1 as highest per capita state and local sales tax collections. Washington's per capita collection in FYI 2010 was $1,770.00.

Also according to the Tax Foundation, Washington's combined State & Local tax rate is 8.80% (4^th highest in the nation), previous blog coverage here.

Greater Wenatchee PFD Voters Approve 0.1% Sales Tax Increase

As of now, the city of Wenatchee has imposed a 0.2% sales tax and all nine PFD jurisdictions have also imposed (by vote of the people) an additional 0.1% sales tax. The 0.1% sales tax increase was passed with 64.54% in favor and 35.46% against. Wenatchee's effective sales tax rate is now 8.3% and East Wenatchee's rate is now 8.2%. For those keeping score at home, this is a contrast with Washington State's average rate of 8.80%.

For my previous discussion of the Greater Wenatchee PFD sales tax issues, check here.

Update on Wednesday, April 25, 2012 at 9:54AM by Jess Monnette

Wenatchee is not the only city that is raising sales tax to pay for a local arena.  Currently, Glendale AZ is considering a 0.8% sales tax increase to (in part) cover subsidy payments from the city to their arena where the Phoenix Coyotes hockey team plays.  This increase will rank Glendale AZ as the highest sales tax major American city.  Their total rate will be 10.30%.

Washington State’s Tax Costs on Business: comparison to other states

The Tax Foundation has released its study "Location Matters, a Comparative Analysis of State Tax Costs on Business."

Washington State ranks 17^th overall for mature operations and 40^th overall for newly established operations. Selected key findings from the study for Washington State are summarized below. The study can be accessed here. The data is searchable by state and Washington's summary is here.

Mature Operations

• Best ranking: Retail stores & call centers: WA ranked 4^th
  • Tax burden for retail is 28% below the national average and 33% below national average for call centers.
  • Main Reasons:
    • WA has no income tax at either state or local level (although it does have a Business and Operations (B&O) tax).
    • WA has a relatively low property tax burden for these operations.
• Worst ranking: Corporate headquarters: WA ranked 46^th.
  • Tax burden on Corporate HQs is 42% above national average.
  • Main Reason: Although WA has no income tax and a low property tax burden, WA has the highest sales tax costs and among the highest costs for unemployment insurance (UI).

New Operations

• Best ranking: New Retail. WA ranks 17^th for new retail operations.
  • Tax burden is on average 8% below national average.
  • Reason: Low income tax and property tax.
• Worst ranking: New Corporate Headquarters. WA ranks 49^th.
  • Tax burden (total) is 81% above the national average.
  • Reason: highest sales tax burden in nation combined with above-average UI costs and gross receipts tax.

Wenatchee Sales Taxes: going up to 8.3%

The City of Wenatchee is in for a 0.2% sales tax increase in the coming days.  This will raise Wenatchee's sales tax to 8.3%.  There will also likely be a be a public vote to add a 0.1% sales tax increase across all nine PFD districts (which includes Wenatchee) in the April 17th election.  Therefore, Wenatchee's sales tax could reach 8.4%.  This is still lower than the average Washington Sales Tax rate which is 8.80%

Update on Friday, March 2, 2012 at 9:03AM by Jess Monnette

Following up on the prior post, on Thursday, March 1, the Wenatchee City Council voted to impose the 0.2% sales tax increase.  This will apply to sales within Wenatchee. 

The Greater Wenatchee Regional Events Center Public Facilities District will vote today on whether or not to put the 0.1% sales tax increase to a popular vote in all nine of the PFD jurisdictions. 

More from the Wenatchee World. 

Update on Tuesday, April 24, 2012 at 1:34PM by Jess Monnette

The 0.1% sales tax increase has been approved by the voters of the PFD communities.  The results were 64.54% in favor, 35.46% against.  This 0.1% sales tax increase applies in all nine districts that comprise the PFD.