Sunday, November 16, 2003

Sales tax avoidance as boon to Southwest Virginia

Oft-quoted ETSU economist Steb Hipple declares in this article in the Johnson City Press (registration required) that Northeast Tennessee loses $354 million per year in retail sales per year to Southwest Virginia because of the difference in the sales tax rates of Tennessee and Virginia.

(I've always wondered, if the sales tax makes such a difference, why aren't there better shopping opportunities on the Virginia side? Maybe there will be, with the continued development of Bristol's Exit 7 area.)

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