Why Retail Sales Tax Matter

Sales Tax Spotlight: Why Retail Sales Taxes Matter

Retail sales taxes account for 32% of state and 13% of local tax collections, totaling about 24% of total state and local revenue. Many policymakers consider sales taxes more pro-growth than income taxes, because they create fewer economic distortions and are directly tied to consumer spending.

🧾 How Sales Taxes Work Across the U.S. 45 states impose a statewide sales tax 38 states allow local sales taxes, which can significantly increase the total rate Even states with moderate statewide rates can have high combined state + local rates.

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.