SECTION THREE: SALES TAX

Vermont ranks 9th/10th among the comparison states with respect to general sales & use tax liability. (It is tied for lowest among states with a sales tax.) Except for North Carolina, which taxes retail grocery food, the sales tax base in all of our study states is virtually identical. Estimated sales taxable purchases by income group were obtained from the US Bureau of the Census Consumer Expenditure Survey. The sales tax findings are below:

Note: In the tables that follow, the sample cases have been kept in the same "income groups" in which they appeared previously in this report. However, we want to caution the reader that these groups could lead to erroneous comparisons if the source data is not considered. For example, in the "Income Group: $0 to $15,000" table directly below, it appears that the taxpayer "Single under 65 " with an AGI of $7,740 is taxed ($100) less than the "Single over 65&qu ot; taxpayer ($166) with the same $7,740 AGI. The case study information in the Appendix to Volume II shows that the "Single under 65" taxpayer (Case#1) gets his or her entire AGI of $7,740 from wages, while the "Single over 65" taxpayer (Case #16) gets his or her AGI of $7,740 from interest, dividends, capital gains, and the taxable portion of a pension payment. However, the "Single over 65" taxpayer also has $1,147 of untaxable pension receipts and $10,032 of untaxable So cial Security payments. This amounts to an additional $11,179 of disposable income for the "Single over 65" taxpayer. For that reason, the sales tax burden in the chart below is higher for the over 65 taxpayer.

Sales Tax - Income Group: $0 - $15,000

Profile


Single<65

HOH<65

Single>65

MFJ>65

HOH<65




Case #1

Case #13

Case #16

Case #19

Case #24


AGI ($)


7,740

10,630

7,740

10,360

0



Tax Rate

Tax ($)

Tax ($)

Tax ($)

Tax ($)

Tax ($)


State








Connecticut

6.0%

120

164

199

269

120

6-7

Florida

6.5%

130

177

215

291

130

4-5

Maine

6.0%

120

164

199

269

120

6-7

Massachusetts

5.0%

100

136

166

224

100

9-10

Minnesota

7.0%

140

191

232

314

140

2-3

New Hampshire

0.0%

0

0

0

0

0

11

New York

6.5%

130

177

215

291

130

4-5

North Carolina

6.0%

228

297

345

425

228

1

Oregon

0.0%

0

0

0

0

0

11

Vermont

5.0%

100

136

166

224

100

9-10

Washington

7.0%

140

191

232

314

140

2-3

Wisconsin

5.5%

110

150

182

247

110

8

Sales Tax - Income Group: $15,000 - $30,000

Profile


Single<65

MFJ<65

Single>65

HOH<65




Case #2

Case #7

Case #17

Case #25


AGI ($)


19,104

19,224

15,409

18,000



Tax Rate

Tax ($)

Tax ($)

Tax ($)

Tax ($)


State







Connecticut

6.0%

199

199

269

199

6-7

Florida

6.5%

215

215

291

215

4-5

Maine

6.0%

199

199

269

199

6-7

Massachusetts

5.0%

166

166

224

166

9-10

Minnesota

7.0%

232

232

314

232

2-3

New Hampshire

0.0%

0

0

0

0

11

New York

6.5%

215

215

291

215

4-5

North Carolina

6.0%

345

345

425

345

1

Oregon

0.0%

0

0

0

0

11

Vermont

5.0%

166

166

224

166

9-10

Washington

7.0%

232

232

314

232

2-3

Wisconsin

5.5%

182

182

247

182

8

Sales Tax - Income Group: $30,000 - $50,000

Profile


Single<65

MFJ<65

MFS<65

MFJ>65




Case #3

Case #8

Case #11

Case #21


AGI ($)


36,190

36,190

36,156

36,172




Tax ($)

Tax ($)

Tax ($)

Tax ($)


State







Connecticut

6.0%

325

325

325

401

6-7

Florida

6.5%

352

352

352

435

4-5

Maine

6.0%

325

325

325

401

6-7

Massachusetts

5.0%

271

271

271

335

9-10

Minnesota

7.0%

379

379

379

468

2-3

New Hampshire

0.0%

0

0

0

0

11

New York

6.5%

352

352

352

435

4-5

North Carolina

6.0%

495

495

495

592

1

Oregon

0.0%

0

0

0

0

11

Vermont

5.0%

271

271

271

335

9-10

Washington

7.0%

379

379

379

468

2-3

Wisconsin

5.5%

298

298

298

368

8

Sales Tax - Income Group: $50,000 - $100,000

Profile


Single<65

MFJ<65

MFJ>65




Case #4

Case #9

Case #22


AGI ($)


53,445

53,445

84,627




Tax ($)

Tax ($)

Tax ($)


State






Connecticut

6.0%

373

373

804

6-7

Florida

6.5%

404

404

871

4-5

Maine

6.0%

373

373

804

6-7

Massachusetts

5.0%

311

311

670

9-10

Minnesota

7.0%

435

435

938

2-3

New Hampshire

0.0%

0

0

0

11

New York

6.5%

404

404

871

4-5

North Carolina

6.0%

588

588

1,045

1

Oregon

0.0%

0

0

0

11

Vermont

5.0%

311

311

670

9-10

Washington

7.0%

435

435

938

2-3

Wisconsin

5.5%

342

342

737

8

Sales Tax - Income Group: $100,000 +

Profile


Single<65

MFJ>65

MFJ<65


MFJ<65




Case #5

Case #23

Case 326


Case #27


AGI ($)


108,284

108,284

191,953


421,506




Tax ($)

Tax ($)

Tax ($)


Tax ($)


State








Connecticut

6.0%

804

804

1,608

6-7

2,680

6-7

Florida

6.5%

871

871

1,742

4-5

2,904

4-5

Maine

6.0%

804

804

1,608

6-7

2,680

6-7

Massachusetts

5.0%

670

670

1,340

9-10

2,234

9-10

Minnesota

7.0%

938

938

1,876

2-3

3,127

1-2

New Hampshire

0.0%

0

0

0

11

0

11

New York

6.5%

871

871

1,742

4-5

2,904

4-5

North Carolina

6.0%

1,045

1,045

1,880

1

2,982

3

Oregon

0.0%

0

0

0

11

0

11

Vermont

5.0%

670

670

1,340

9-10

2,234

9-10

Washington

7.0%

938

938

1,876

2-3

3,127

1-2

Wisconsin

5.5%

737

737

1,474

8

2,457

8