November 7, 2008
Los Angeles Times Uses State Business Tax Climate Index in Story on Sales Tax Increase Proposal
"A State Sales Tax Jump Could Backfire"
By Martin Zimmerman
California has a reputation as a high-tax state. When it comes to sales taxes, at least, it's well deserved.
At 7.25%, the Golden State's statewide sales tax rate is the highest in the nation, according to a 2007 ranking. If Gov. Arnold Schwarzenegger's proposed three-year, 1.5-percentage-point increase goes into effect, it would solidify our lead over our closest competition -- Mississippi, New Jersey, Rhode Island and Tennessee, which all had 7% statewide rates according to the most recent ranking by the Tax Foundation.
