Report: state, local taxes rank 29th lowest in nation

Washington’s state and local taxes were the 29th-lowest in the country during Fiscal Year 2004, according to figures just published by the U.S. Census Bureau.

State and local taxes were $106.27 per $1,000 personal income, compared to a U.S. average of $110.43 per $1,000. Washington ranked 10th lowest among 13 Western states.

Washington ranked 18th among the states in taxes per capita at $3,452, only $5 above the national average and the closest Washington has been to that average since 1982. This is unusual for higher-income states such as Washington, which tend to have higher per capita taxes than states whose residents have lower incomes. Washington ranked 16th per capita in 2002.

Washington was below the national average in property taxes per capita, ranking 22nd at $1,029 per capita, compared to a U.S. average of $1,086. Washington ranked 28th in property taxes per $1,000 personal income, at $31.68 compared to a U.S. average of $34.75.

Washington’s ranking declined from a peak of 11th in 1998 to 20th in 1999, and 32nd in 2000 and 2002. The Census Bureau did not publish local data for 2001 and 2003. Tax collections per $1,000 personal income were $107.53 in 2000 and $100.90 in 2002. The low 2002 figure was due to strong growth of personal income relative to taxes for that year and was the lowest rate of taxes per $1,000 personal income since 1981.

More information and analysis is available in Comparative State and Local Taxes 2004, published online this week at http://www.dor.wa.gov/content/statistics/2006/Compare06/default.aspx.