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For reference, the equivalent tax rate in SF is 1.1801%

No state taxes in Texas, so local jurisdictions that want to provide services have higher fees and taxes. (oversimplified)

Yup. I wasn't clear:

California also has a state income tax up to 12% (!!) and a sales tax of 7%. Texas has no state income tax and a sales tax of 6%.

Yep, sorry, my comment didn't express what I was thinking.

My point was not that the rate here in SF is lower, but that SF also taxes the same thing.

This was surprising to me, as I'm from the UK, where:

- businesses don't pay ongoing taxes just for having stuff, and

- businesses claim back VAT on things they buy for business use