2000 Sales Tax Trends; Vertex Study Shows Average Sales Tax Rate Leveling Off After 18 Consecutive Years of Increases

Apr 25, 2001, 01:00 ET from Vertex Inc.

    BERWYN, Pa., April 25 /PRNewswire/ -- After 18 consecutive years of steady
 increases, the average sales tax rate combining state, county and city levels
 throughout the United States has leveled off, according to statistics released
 today by Vertex Inc., the leading provider of state and local tax software and
 research.  This information and more is part of a study recently released by
 Vertex that chronicles sales tax trends, facts and figures.  The report can be
 accessed at www.vertexinc.com.
     For the second straight year, the average combined sales tax rate remained
 below the 1998 all-time high combined average sales tax rate of 8.251%. In
 1999 the sales tax rate decreased to a new low of 8.231%.  The rate increased
 slightly for 2000 to 8.235%, but still remains below the 1998 average rate.
 "After nearly two decades of steady growth, it appears the combined average
 sales tax rate has finally peaked," said Bruce Pierce, chief taxation officer
 for Vertex.  "The strength of the economy and healthy state and local budgets
 during this time period appear to be the primary reasons for the leveling
 effect on the average combined rate figure."
     Other 2000 sales tax findings by Vertex's study include:
 
    1. Approximately 7,500 state, county and city jurisdictions in the United
    States charge a sales tax.
 
    2. The 2000 national average sales tax rate for
       -- cities is 1.556%
       -- counties is 1.551%
       -- states is 5.128%
 
    3. The city of Wrangell, Alaska imposes the highest city-level sales tax
    rate at 7%.  (Note: Wrangell's sales tax is a maximum tax imposed on the
    first $1,000 of a single item transaction.)
 
    4. The city of Arab in Cullman County, Alabama continues to have the
    highest combined sales tax rate (11%) in the country.
 
    5. Six parishes in Louisiana and two counties in Alaska impose the highest
    county-level sales tax in the nation at 5%.
 
    6. Mississippi and Rhode Island have the highest state-level sales tax
    rate of 7%.
 
    7. The Dallas Fort Worth Airport, considered part of 3 cities, has 3
    different local sales tax rates: 1% city and 1% district in Irving; 2% in
    Euless; 1% in Grapevine.
 
    8. Alaska cities Seldovia and Whittier charge a higher sales tax rate in
    summer than in winter.  Seldovia sales tax rate from April 1 through
    September 30 is 4.5%, but during October 1 and March 31 the sales tax rate
    drops to 2%.  Whittier sales tax rate from April 1 through September 30 is
    3%, but during October 1 and March 31 the sales tax rate drops to 0%.
 
     More information on 2000 sales tax rates is available in the Tax Cybrary
 section of the Vertex web site, located at www.vertexinc.com.
 
     About Vertex
     Founded in 1974, Vertex Inc. is a privately held firm providing more than
 10,000 corporate customers with tax compliance software and research services
 for sales and use tax, property tax, payroll tax and telecommunications tax.
 Headquartered in Berwyn, PA, with regional offices in Chicago, Dallas,
 Washington and Walnut Creek, CA, Vertex has strategic partnerships with the
 leading applications and e-Business providers including Clarify, IBM, J.D.
 Edwards, Lawson, Microsoft, Oracle, PeopleSoft, SAP, Siebel and many more.
 The company recently became one of only 35 software firms worldwide to receive
 the prestigious Support Center Practices certification.  More information:
 www.vertexinc.com.  Vertex is a registered trademark of Vertex Inc.
 
 
               Summary Of Average U.S. Sales Tax Rates 1981-2000
 
 
                             State         County      City and      Combined
     Year                  Avg. Rate     Avg. Rate     District   Average Rate
                                                       Avg. Rate
 
     1981                     4.101%        1.153%       1.261%        6.515%
     1982                     4.261         1.162        1.294         6.717
     1983                     4.489         1.215        1.304         7.008
     1984                     4.546         1.223        1.325         7.094
     1985                     4.554         1.246        1.340         7.140
     1986                     4.686         1.331        1.364         7.381
     1987                     4.762         1.299        1.388         7.449
     1988                     4.784         1.321        1.398         7.503
     1989                     4.846         1.336        1.503         7.685
     1990                     4.945         1.339        1.528         7.812
     1991                     5.021         1.304        1.540         7.865
     1992                     5.068         1.378        1.561         8.007
     1993                     5.090         1.406        1.604         8.100
     1994                     5.125         1.415        1.606         8.146
     1995                     5.120         1.437        1.613         8.170
     1996                     5.130         1.494        1.593         8.217
     1997                     5.130         1.507        1.611         8.248
     1998                     5.109         1.519        1.623         8.251
     1999                     5.135         1.543        1.553         8.231
     2000                     5.128         1.551        1.556         8.235
 
     Note: Averages are based on jurisdictions that impose a sales tax.
                              Source: Vertex Inc.
                               www.vertexinc.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X16612841
 
 

SOURCE Vertex Inc.
    BERWYN, Pa., April 25 /PRNewswire/ -- After 18 consecutive years of steady
 increases, the average sales tax rate combining state, county and city levels
 throughout the United States has leveled off, according to statistics released
 today by Vertex Inc., the leading provider of state and local tax software and
 research.  This information and more is part of a study recently released by
 Vertex that chronicles sales tax trends, facts and figures.  The report can be
 accessed at www.vertexinc.com.
     For the second straight year, the average combined sales tax rate remained
 below the 1998 all-time high combined average sales tax rate of 8.251%. In
 1999 the sales tax rate decreased to a new low of 8.231%.  The rate increased
 slightly for 2000 to 8.235%, but still remains below the 1998 average rate.
 "After nearly two decades of steady growth, it appears the combined average
 sales tax rate has finally peaked," said Bruce Pierce, chief taxation officer
 for Vertex.  "The strength of the economy and healthy state and local budgets
 during this time period appear to be the primary reasons for the leveling
 effect on the average combined rate figure."
     Other 2000 sales tax findings by Vertex's study include:
 
    1. Approximately 7,500 state, county and city jurisdictions in the United
    States charge a sales tax.
 
    2. The 2000 national average sales tax rate for
       -- cities is 1.556%
       -- counties is 1.551%
       -- states is 5.128%
 
    3. The city of Wrangell, Alaska imposes the highest city-level sales tax
    rate at 7%.  (Note: Wrangell's sales tax is a maximum tax imposed on the
    first $1,000 of a single item transaction.)
 
    4. The city of Arab in Cullman County, Alabama continues to have the
    highest combined sales tax rate (11%) in the country.
 
    5. Six parishes in Louisiana and two counties in Alaska impose the highest
    county-level sales tax in the nation at 5%.
 
    6. Mississippi and Rhode Island have the highest state-level sales tax
    rate of 7%.
 
    7. The Dallas Fort Worth Airport, considered part of 3 cities, has 3
    different local sales tax rates: 1% city and 1% district in Irving; 2% in
    Euless; 1% in Grapevine.
 
    8. Alaska cities Seldovia and Whittier charge a higher sales tax rate in
    summer than in winter.  Seldovia sales tax rate from April 1 through
    September 30 is 4.5%, but during October 1 and March 31 the sales tax rate
    drops to 2%.  Whittier sales tax rate from April 1 through September 30 is
    3%, but during October 1 and March 31 the sales tax rate drops to 0%.
 
     More information on 2000 sales tax rates is available in the Tax Cybrary
 section of the Vertex web site, located at www.vertexinc.com.
 
     About Vertex
     Founded in 1974, Vertex Inc. is a privately held firm providing more than
 10,000 corporate customers with tax compliance software and research services
 for sales and use tax, property tax, payroll tax and telecommunications tax.
 Headquartered in Berwyn, PA, with regional offices in Chicago, Dallas,
 Washington and Walnut Creek, CA, Vertex has strategic partnerships with the
 leading applications and e-Business providers including Clarify, IBM, J.D.
 Edwards, Lawson, Microsoft, Oracle, PeopleSoft, SAP, Siebel and many more.
 The company recently became one of only 35 software firms worldwide to receive
 the prestigious Support Center Practices certification.  More information:
 www.vertexinc.com.  Vertex is a registered trademark of Vertex Inc.
 
 
               Summary Of Average U.S. Sales Tax Rates 1981-2000
 
 
                             State         County      City and      Combined
     Year                  Avg. Rate     Avg. Rate     District   Average Rate
                                                       Avg. Rate
 
     1981                     4.101%        1.153%       1.261%        6.515%
     1982                     4.261         1.162        1.294         6.717
     1983                     4.489         1.215        1.304         7.008
     1984                     4.546         1.223        1.325         7.094
     1985                     4.554         1.246        1.340         7.140
     1986                     4.686         1.331        1.364         7.381
     1987                     4.762         1.299        1.388         7.449
     1988                     4.784         1.321        1.398         7.503
     1989                     4.846         1.336        1.503         7.685
     1990                     4.945         1.339        1.528         7.812
     1991                     5.021         1.304        1.540         7.865
     1992                     5.068         1.378        1.561         8.007
     1993                     5.090         1.406        1.604         8.100
     1994                     5.125         1.415        1.606         8.146
     1995                     5.120         1.437        1.613         8.170
     1996                     5.130         1.494        1.593         8.217
     1997                     5.130         1.507        1.611         8.248
     1998                     5.109         1.519        1.623         8.251
     1999                     5.135         1.543        1.553         8.231
     2000                     5.128         1.551        1.556         8.235
 
     Note: Averages are based on jurisdictions that impose a sales tax.
                              Source: Vertex Inc.
                               www.vertexinc.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X16612841
 
 SOURCE  Vertex Inc.