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Show Utah Foundation Sees Sales Tax Increase According to , the Utah Foundation, Foun-dation, 21 of 34 states that have a state sales tax now impose a rate in excess of 2. In 1945, only five states used sales tax rates above 2. The Foundation analysis shows that Washington has a 4 rate, two states a 3 rate, 16 states a 3 rate, two states a 212 rate, 12 states a 2 rate, one state a 38th of 1 rate, while 16 states do not impose a state sales tax. Furthermore, the report od-serves od-serves that "an increasing number num-ber of states are permitting local units of government to levy sales taxes." Utah's 1959 Legislature enacted legislation which allows counties, cities and towns to impose im-pose a local sales tax of Vi of 1 on a county-wide basis. Local sales taxes are now employed by municipalities in twelve states. In all but three of these states, Alaska, New York and Virginia, the local sales tax is levied in addition to a state sales tax. When state and local sales tax, are considered together, 27 of the 37 states with sales tax, either state andor local, have combined com-bined rates in excess of 2. Three . states have a maximum combined rate of 4, four states a 2l2 combined rate, 18 states a 3 rate, two states a 2Y2 maximum rate, nine states a 2 rate, one state a rate of 38ths of 1, while 13 states do not have any type of general sales tax. Foundation analysts observe that the sales tax is a major revenue rev-enue source in all of the states using the tax. Approximately a third of all state tax revenue collected in the 34 states having the tax is derived from the sales tax. States sales tax collections totaled $3,555,842,000 during the 1958 fiscal year. Per capita sales tax collections in the 34 sales tax states amounted to $31.08 last year. Utah's sales tax produced pro-duced $24,494,573 or $29.16 per capita in fiscal 1958. Sales tax collections in Utah for the fiscal year end June 30, 1959 equaled $25,781,146 or $29.80 per capita. |