Dear pch0070-ga;
Thank you for allowing me an opportunity to answer your interesting
question.
Hmm…seemed like a simple enough request. Wrong!…but I did find the
answer for you. To figure this one out, one must ignore published
claims and get right to the most reliable sources of information. Then
it requires some calculation. Here’s how I reached the conclusion:
THE INSURANCE INFORMATION INSTITUTE surveys the states (and DC)
annually and ranks each location according to its average insurance
premium expenditures. The latest study was done in 2000. From lowest
to next highest here are the bottom six for 2000 (lowest first):
http://www.iii.org/media/facts/statsbyissue/auto/
51st North Dakota – $477.28
50th South Dakota – $478.42
49th Iowa - $478.75
48th Wyoming - $495.60
47th Idaho - $505.16
46th Main - $528.08
The national average expenditure for insurance premiums was $686.71.
As you can clearly see, these are all well below average.
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According to this document, by the US Census Bureau, of the six states
mentioned above, here is how they were ranked in state tax collection
per state, per capita:
$1283.20 South Dakota
$1693.40 Idaho
$1704.69 Iowa
$1762.00 North Dakota
$2194.50 Wyoming
$2029.28 Main
US CENSUS BUREAU
http://www.census.gov/govs/statetax/02staxss.xls
$1,967.00 is the national average according to STATELINE.ORG. Of the
states listed, South Dakota, Idaho, Iowa, and North Dakota are well
below national average in the amount of state taxes collected from
state citizens.
http://www.stateline.org/story.do?storyId=236328
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Of the four qualifying states remaining, they are ranked thusly with
regard to state sales tax. (The first value listed here is each
state’s sales tax rate. The second value listed is the state sales tax
rates along with combined average city and county rates and represents
the overall average state sales tax rates):
STATE SALES TAX CLEARINGHOUSE
http://thestc.com/STrates.stm
4% - 5.15% - South Dakota
5% - 5.50% - North Dakota
5% - 6.01% - Iowa
6% - 6.05% - Idaho
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Clearly, the answer to your question, ACCORDING TO THE DATA CURRENTLY
AVAILABLE is South Dakota, with an average insurance premium
expenditure of $478.42, a tax responsibility of $1283.20 per capita
and an average overall state sales tax rate of 5.15%.
I should mention that as more 2002 and 2003 data become available, one
or more of these states may jockey for position in the rankings, but
historically they have all been listed as the lowest in all of these
areas for a number of years. If one of more of them move up or down
the list, it is doubtful they would move far in one year’s time since
tax rates tend to remain at, or near, the same level for several years
while insurance rates fluctuate. A good example of this is South
Dakota vs. North Dakota. While North Dakota actually has lower auto
insurance premiums on average (+ or – only $1), South Dakota’s
unusually low state tax base means this state wins out in accordance
to your criteria. Even if North Dakota lowered its average premiums
and South Dakota raised its taxes at the same time, South Dakota would
probably still be on the top of your list because such a change would
have to be so significant as to displace the state from the most
desirable position on this particular list – and you and I know that
nowadays, this isn’t likely in one year’s time.
I hope you find that that my research exceeds your expectations. If
you have any questions about my research please post a clarification
request prior to rating the answer. I welcome your rating and your
final comments and I look forward to working with you again in the
near future. Thank you for bringing your question to us.
Best regards;
Tutuzdad-ga
INFORMATION SOURCES
THE INSURANCE INFORMATION INSTITUTE
http://www.iii.org/media/facts/statsbyissue/auto/
US CENSUS BUREAU
http://www.census.gov/govs/statetax/02staxss.xls
STATELINE.ORG
http://www.stateline.org/story.do?storyId=236328
STATE SALES TAX CLEARINGHOUSE
http://thestc.com/STrates.stm
SEARCH STRATEGY
SEARCH ENGINE USED:
Google ://www.google.com
SEARCH TERMS USED:
LOWEST INSURANCE PREMIUMS “BY STATE”
STATE TAXES “BY STATE”
“SALES TAX” “BY STATE” |
