In Missouri, A Contrast in Sales Taxes
ST. LOUIS (KMOX) – The average Missourian pays a 7.5 percent tax on purchases in the state, according to figures from the Tax Foundation, a nonpartisan research group.
That’s the fourteenth-highest rate in the nation but the group Missouri Watchdog says the issue is more complicated than that.
“What’s kind of interesting about that number is the overall state tax rate is one of the lowest at 4.225 [percent],” explains Missouri Watchdog reporter Johnny Krampis.
Just ahead of a visit to Missouri by Texas Gov. Rick Perry last month, Missouri Gov. Jay Nixon tweeted a list of reasons his state was better than Texas. Number one on that list was the state’s low sales tax.
So why the disconnect between a low state tax and a higher-than-average rate paid by Missouri consumers? High local sales tax rates in St. Louis and Kansas City, around 4.75 percent in some cases.
Krampis says people should ask their local representatives where that revenue goes.