08 February 2006

Colorado 48th in State Tax Burden.

Colorado ranks 48th in per capita state taxes (i.e. only South Dakota and Texas impose fewer dollars of state taxes per capita). But, this is partially a statistical quirk. Colorado collects a significantly larger share of state and local tax revenues at the local level (59%) than most states do (the national average is slightly under 50%), to a great extent because it has taken the fairly unusual step of allowing local governments to impose sales taxes. The TABOR amendment, which has kept state funding for things like higher education particularly low in Colorado, is another important cause for Colorado's low ranking.


Sotosoroto said...

Local sales tax is unusual? I guess I need to get out of Seattle more often!

Andrew Oh-Willeke said...

Few states use them to the extent that Colorado does. For example, in Denver, the majority of the sales tax burden is from local government.

But, I will likely be getting out to Seattle in the not too distant future, as I have a newborn nephew there.