There's good news, however, for the taxed residents of the other 45 and the District of Columbia. A recent survey finds that after 18 consecutive years of steady increases, the average rate of combined state and local sales taxes throughout the United States has leveled off. Sales taxes vary widely and are a major source of operating money for approximately 7,500 taxing jurisdictions such as states, cities, counties, school districts and airports.
Some states collect a few percentage points on every sale.
Some exempt specific items, such as food. Even in states without a state-imposed levy, cities and counties may still collect a few pennies on most consumer transactions. And in some cases, the weather determines just how high a sales tax climbs. Second year of tax rate declines Vertex Inc., a provider of state and local tax software and research, says the country's 2000 average combined sales tax rate remains below 1998's all-time high of 8.251 percent. In 1999, the combined sales tax rate decreased to 8.231 percent and it went up only slightly last year to 8.235.