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State Tax Information
All states also have their own tax system. Typically there is
a tax on real estate, and there may be additional income taxes, sales taxes, and
excise taxes. Oil and mineral producing states often have a severance tax, which
is similar to an excise tax in that tax is paid on products produced, rather
than on sales. Taxes on hotel rooms are common, and politically popular because
the taxpayers usually do not vote in the jurisdiction levying the tax.
These states do not levy an individual income tax: Alaska, Florida, Nevada,
South Dakota, Texas, Washington, and Wyoming. New Hampshire and Tennessee only
tax interest and dividend income. Delaware, Oregon, Montana and New Hampshire
have no state or local sales tax. Alaska has no state sales tax, but allows
localities to collect their own sales taxes up to a state-specified maximum.
California has all the mentioned taxes, with the result that tax liability often
exceeds 51% of income for many California residents.
Many states also levy personal property taxes, which are annual taxes on the
privilege of owning or possessing items of personal property within the
boundaries of the state. Automobile and boat registration fees are a subset of
this tax; however, most people are unaware that practically all personal
property is also subject to personal property tax. Usually, household goods are
exempt; but virtually all objects of value (including art) are covered,
especially when regularly used or stored outside of the taxpayer's household.
States permit the creation of special assessment districts (typically for
provision of water or removal of sewage, or for parks, public transit or
schools) whose boundaries may be independent of other boundaries and whose
income may be from one or more of service assessments, property taxes, parcel
taxes, a portion of road or bridge tolls, or an additional increment upon sales
taxes in addition to the non-tax fees for services provided (such as metered
water). State government is financed mainly by a mix of sales and/or income
taxes and to a lesser extent by corporate registration fees, certain excise
taxes, and automobile license fees.
For more free legal information on Tax Laws, please use the
links below:
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