Mo. sales tax ranks 14th highest in nation

Missouri has the 14th highest state and local sales tax in the nation. According to the 2014 Facts & Figures report from nonpartisan group Tax Foundation, the Show-Me State's combined state and average local tax rate totaled 7.58 percent as of Jan. 1.

Missouri border state Tennessee has the highest combined state and local sales tax in the nation at 9.45 percent. Other border states were a mixed bag. Arkansas came in second with a combined rate of 9.19 percent and Iowa ranked 27 with 6.78 percent.

However, other taxes, such as Missouri's gasoline tax rate were near the bottom of the scale. As of Jan. 1, Missouri's combined rate was 17.30 cents per gallon, ranking 45th lowest in the nation. At 52.47 cents per gallon, California ranked highest. Missouri's cigarette excise tax remains the lowest in the nation at 0.17 cents, and the beer excise tax is the second lowest at 0.06 cents.

Missouri's total state and local tax burden came in at $3,380, about 9 percent of total individual income for fiscal 2011, according to the study, ranking Missouri No. 33 in the nation. 

The Show-Me State ranked No. 16 in state business climate as of July 1, 2013, based on five component taxes: corporate, individual income, sales, unemployment insurance and property. New Mexico claimed the top spot, and New Jersey bottomed out the list at No. 50.

Missouri collected only $1,796 in state taxes per capita for fiscal 2012, ranking the state close to last in the nation, at No. 46. State corporate income tax collections per capita were $50, ranking one higher at 45th.

Federal aid played a large role in Missouri's general revenue in fiscal 2012, ranking the state No. 5 with 40.8 percent. Mississippi came in first with 45.8 percent of its general revenue fund from state funding.  

“It’s crucial that lawmakers and taxpayers have an accurate grasp of where their state stands on key tax and spending measures compared to the rest of the country,” said Tax Foundation economist Lyman Stone, in a news release. “States are aggressively competing for new jobs and investment. As businesses and taxpayers consider where they might want to move or invest, a state’s tax structure is an important consideration.”

Missouri's tax freedom day – representing how long residents work into the year before they have earned enough money to pay all federal, state and local taxes for the year – is April 8, ranking it 37th nationwide.