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If sales tax in your town was 9.75% and the next town over was 8% would you shop at the stores in the lower tax rate?

Asked by JLeslie (65449points) August 3rd, 2012

Let’s say it doesn’t take you out of your way, but previously you were shopping in the stores in your town, because it gave money to the tax base in your community and helped your property taxes be lower. So, there is a little bit of adjustment for where you do your shopping, but it is minor.

The situation is my town just voted to increase the sales tax from 9.25% to 9.75% to supposedly help schools, because they also voted to break away from the county school system. I was then thinking that if other towns nearby actually cut their tax rate, they might wind up with more revenue in the end than at the old rate of 9.25%, because people might significantly alter their shopping habits.

FYI: Groceries are taxed where I live.

How much of a difference would the tax rate need to be for you to change your shopping habits, or to even contemplate how much the tax is in general that it would even be considered.

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