where is the highest sales tax in the usa
California
5842834
sales taxes on groceries remained unchanged. California, from 1991 to 2012 and since 2017, has a base sales tax of 7.25%, composed of a 6% state tax and a 1.25% uniform local tax. California is ranked as having the tenth highest average combined state and local sales tax rate in the United States at 8.25%. Sales and use taxes are collected by the California State Board of Equalization, which is the only publicly elected tax commission in the United States. Income and franchise taxes are collected separately by the California Franchise Tax Board. In general, sales tax is required on
Sales taxes in the United States
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sales taxes on groceries remained unchanged. California, from 1991 to 2012 and since 2017, has a base sales tax of 7.25%, composed of a 6% state tax and a 1.25% uniform local tax. California is ranked as having the tenth highest average combined state and local sales tax rate in the United States at 8.25%. Sales and use taxes are collected by the California State Board of Equalization, which is the only publicly elected tax commission in the United States. Income and franchise taxes are collected separately by the California Franchise Tax Board. In general, sales tax is required on
Sales taxes in the United States
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Equalization lists South Gate's sale tax rate as 10.75%. The income per capita is $11,566, which includes all adults and children. The median household income is $41,064. South Gate's commercial activity is concentrated in the following zones: As of April 1, 2009, the City of South Gate imposed a 10.25-percent sales tax (statewide plus local supplementary, which is now 9.75% with the expiration of the temporary tax increase under Proposition 1A), which matches Pico Rivera's sales tax rate as the highest in the State of California. On July 9, 2009, the South Gate City Council held a special meeting where
South Gate, California
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to local governments the authority to impose additional general or selective sales taxes. Since January 2017, 5 states (Alaska, Delaware, Montana, New Hampshire and Oregon) do not levy a statewide sales tax, while California has the highest state sales tax with a base rate of 7.25%. (The territory of Puerto Rico has a higher 10.5% value added tax since April 2016). In some states such as California, counties and cities impose additional sales taxes, and total sales taxes can be over 11%. Sales tax is calculated by multiplying the purchase price by the applicable tax rate. Tax rates vary widely
Sales taxes in the United States
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combined with local and county taxes, South Carolina has the second-highest sales tax in the United States next to California. In Charleston, South Carolina, the tax rates equals 10.5% with state tax, county tax, local option tax, and the hospitality tax. Some items have different rates; e.g., the tax is 3% on unprepared food items and 7% on sleeping accommodation rentals. Individuals 85 or older get a one-percent exclusion from the general sales tax. Counties may impose an additional 1% local option sales tax and other local sales taxes, and local governments may impose a local accommodations tax of up
South Carolina government and politics
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Sales and use taxes in California Sales and use taxes in California are among the highest in the United States and are imposed by the state and local governments. From a tax terminology perspective, sales taxes are a proportional tax; though because of the fact that lower income earners may pay a greater percentage of their earnings to sales taxes than higher income earners, sales tax can also be described as a regressive tax. Local sales tax increases create geographical variations in sales tax rates which can place some local businesses at a competitive disadvantage. At 7.25%, California has the
Sales and use taxes in California
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highest minimum statewide sales tax rate in the United States, which can total up to 10.25% with local sales taxes included. As of January 1, 2017, the statewide sales tax rate decreased from 7.50% to 7.25% as a result of the expiration of the temporary statewide sales tax increase under Proposition 30 that California voters approved in November 2012. Some claim the high sales tax rates partially compensate for the reduced property tax revenue resulting from Proposition 13 which California voters approved in June 1978. However, others point out that, in most counties (all but the rural counties), property tax
Sales and use taxes in California
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or is reduced while the homeless programs/services sales tax increase is in effect, the homeless programs/services sales tax will immediately become operative in that city. This situation happened in the city of La Mirada beginning on April 1, 2018. As of October 1, 2018, the following California cities have the highest combined sales tax rate within each of the 58 counties in California: All local sales taxes are subject to voter approval under Proposition 218 ("Right to Vote on Taxes Act") which California voters approved in November 1996. Whether simple majority voter approval or two-thirds voter approval is required depends
Sales and use taxes in California
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This means a married couple earning less than $18,182.00 pays no income tax. Rates for single persons are the same but the bracket amounts are halved. The 8.4 percent "average" sales tax assessed by the state and local governments of California is one of the highest in the nation and varies by city and county from a low of 7.5% to 10.0%. Food, prescription drugs and services are exempt from sales tax — about one-third of all purchases have sales tax applied to them. Sales taxes are collected by the state, which re-allocates them to the various counties, cities, districts,
Economy of California
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is generally needed in situations where bonds have been issued and sales tax revenues have been pledged to repay the bonds. A local compensatory initiative under Proposition 218 is an alternative option when contract impairment problems are present. Recent temporary statewide sales tax increases include: As of July 1, 2011, California applies sales tax to online retailer purchases. It is the retailer's responsibility to collect the state sales tax on all purchases made within (or shipped to) California regardless where the retailer/supplier is located. This sales tax levy was arranged through a negotiation between the governor, Jerry Brown, and the
Sales and use taxes in California
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However, that statistic doesn't consider that saved money will eventually be subject to inheritance taxes. Further, since lower income families spend a higher portion of their income on groceries, states like California that exempt groceries from sales tax are not as regressive in the implementation of sales taxes. Sales and use taxes in California Sales and use taxes in California are among the highest in the United States and are imposed by the state and local governments. From a tax terminology perspective, sales taxes are a proportional tax; though because of the fact that lower income earners may pay a
Sales and use taxes in California
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wasn't required to collect sales taxes in California. In the company's financial report for the quarter ending September 30, 2009, the company stated that the imposition of sales-tax collection by more states or Congress could "decrease our future sales." Amazon tax Amazon tax collection policy has changed over the years. In the U.S., state and local sales taxes are levied by state and local governments, not at the federal level. In most countries where Amazon operates, a sales tax or value added tax is uniform throughout the country, and Amazon is obliged to collect it from all customers. Many U.S.
Amazon tax
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sales taxes is that sales tax rates vary in California from 7.25% (in areas where no additional local sales taxes are levied) to 10.25%. For example, the city of Sacramento, the state capital, has a combined 8.25% sales tax rate, and Los Angeles, the largest city in California, has a combined 9.50% sales tax rate. The combined tax rate of all local sales taxes in any county is generally not allowed to exceed 2.00 percent. However, this is a statutory restriction and the California Legislature routinely allows local governments, through the adoption of separate legislation, to exceed the 2.00 percent
Sales and use taxes in California
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changes to the base prior to Proposition 13. The Howard Jarvis Taxpayers Association estimates that Proposition 13 has reduced taxes paid by California taxpayers by an aggregate $528 Billion (value retrieved 31 May 2009). However, other estimates show that Proposition 13 seems to have not reduced California's overall per-capita tax burden or State spending. California has the highest marginal income tax rate in the nation, and is in the top ten highest corporate tax and sales tax rates nationally. A 1993 report from the California Policy Seminar (now the California Policy Research Center) argues that a property tax system based
1978 California Proposition 13
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1996 initiative constitutional amendment approved by California voters. Proposition 218 includes a provision constitutionally reserving to local voters the right to use the initiative power to reduce or repeal any local tax, assessment, fee or charge, including provision for a "significantly reduced" petition signature requirement to qualify a measure on the ballot. A local sales tax, including a sales tax previously approved by local voters, is generally subject to reduction or repeal using the local initiative power under Proposition 218. Examples where the reduction or repeal of a local sales tax may be appropriate include where there has been significant
Sales and use taxes in California
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percent of Maryland taxable income. Local officials set the rates and the revenue is returned to the local governments quarterly. The top income tax bracket of 9.45 percent is the fifth highest combined state and local income tax rates in the country, behind New York City's 11.35 percent, California's 10.3 percent, Rhode Island's 9.9 percent, and Vermont's 9.5 percent. Maryland's state sales tax is 6 percent. All real property in Maryland is subject to the property tax. Generally, properties that are owned and used by religious, charitable, or educational organizations or property owned by the federal, state or local governments
Maryland
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for a total rate of 9.15%. As of May 2014, the highest combined rate of sales tax is located in Junction City where there is a community improvement district called Goodies Plaza. That rate is 11.15%. Kentucky has a 6% state sales tax. Most staple grocery foods are exempt. Alcohol sales were previously exempt until April 1, 2009, when a 6% rate was applied to this category as well. Louisiana has a 5% state sales tax as of 1 April 2016. The state sales tax is not charged on unprepared food. There are also taxes on the parish (county) level
Sales taxes in the United States
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the national average and a sales tax above the national median. The State of Oregon has even lower property taxes and no sales tax but one of the highest state income taxes. As a result, many Vancouver residents prefer to shop in neighboring Portland where they do not pay sales taxes then live and work in Vancouver where they do not pay state income tax. (Washington residents who work in Oregon must pay Oregon income tax.) For the same reasons, the city is popular with retirees. Conversely, the city is less favored by students and young adults. In 2003, 70%
Vancouver, Washington
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the sales tax is 15.6%. The lowest combined state, county, and municipality sales tax rate in Washington is 7% in most of Klickitat and Skamania counties, while the highest combined sales tax in Washington is the 10.4% in some parts of Snohomish County. The highest sales tax in Washington is on liquor. The spirits sales tax is 20.5% of the value of the product purchased and a $3.7708 per liter spirits liter tax is assessed on spirits sold to consumers. April 1, 2008 saw tax increases in King County (+.001), Kittitas County (+.003), Mason County (+.001), and the city of
Sales taxes in the United States
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charge tax on food, and many do. Arizona's TPT is one of the few excise taxes in the country imposed on contracting activities rather than sales of construction materials. Phoenix, the capital and largest city, has a 2% TPT rate. A law passed in July 2011 created a requirement that Arizona residents declare how much use tax they owe on purchases made from out-of-state online retailers and catalogs. Indian reservations in Arizona have their own sales taxes, and these are some of the highest sales tax rates in the United States. The highest sales tax in the country as of
Sales taxes in the United States
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receipts tax which charges varying rates for different types of businesses. Washington's state base sales tax is 6.5 percent, which is combined with a local sales tax that varies by locality. The combined state and local retail sales tax rates increase the taxes paid by consumers, depending on the variable local sales tax rates, generally between 7.5 and 10 percent. As of March 2017, the combined sales tax rate in Seattle and Tacoma was 10.1 percent. The cities of Lynwood and Mill Creek have the highest sale tax rate in the state at 10.4 percent. These taxes apply to services
Washington (state)
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2008 Iowa passed a State Penny for School Infrastructure sales tax. This tax replaced the county local option sales taxes throughout Iowa. After the district’s local option sales tax expired the statewide tax took effect on July 1, 2013. It is anticipated that the FY 2013-14 sales tax collections will exceed $8 million. Dubuque Community School District The Dubuque Community School District (DCSD) is a school district based in Dubuque, Iowa (USA). DCSD, which operates schools in eastern Dubuque County, is the seventh largest school district in Iowa. As of the 2007-2008 school year, DCSD has 10,728 students enrolled in
Dubuque Community School District
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the Philippines, made use of a general sales tax for national finance. Excise tax — a transaction tax on the sale of specific items — was broadly used, however, and the idea of a general sales tax was neither unknown nor obscure to political decision-makers in the United States. Indeed, in 1921 there was a concerted effort to implement a 1% national sales tax in the USA by attaching it to the 1921 national revenue bill and 1922 legislation providing for a soldiers' bonus. Although the proposals for a national sales tax were defeated by an alliance of farmer and
Sales tax token
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sales tax rates by state. Notes: Alabama has a state general sales tax of 4%, plus any additional local city and county taxes. , the highest total general sales tax rate in Alabama is in the portions of Arab that are in Cullman County, which total to 13.5%. Alabama is one of several states that do not exempt food from state taxes. City Tax Rates There is no state sales tax in Alaska; however, local governments – which include boroughs, the Alaska equivalent of counties, and municipalities – may levy up to 7.5 percent. As of January 2009, 108 of
Sales taxes in the United States
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for different types of businesses. Washington's state base sales tax is 6.5 percent which is combined with a local sales tax which varies by locality. The combined state and local retail sales tax rates increase the taxes paid by consumers, depending on the variable local sales tax rates, generally between 7.5 and 10 percent. As of March 2017, the combined sales tax rate in Seattle and Tacoma was 10.1 percent. The cities of Lynnwood and Mill Creek have the highest sale tax rate in the state at 10.4 percent. These taxes apply to services as well as products. Most foods
Economy of Washington (state)
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in the world have sales taxes or value-added taxes at all or several of the national, state, county, or city government levels. Countries in Western Europe, especially in Scandinavia, have some of the world's highest valued-added taxes. Norway, Denmark and Sweden have higher VATs at 25%, Hungary has the highest at 27% although reduced rates are used in some cases, as for groceries, art, books and newspapers. In some jurisdictions of the United States, there are multiple levels of government which each impose a sales tax. For example, sales tax in Chicago (Cook County), IL is 10.25%, consisting of 6.25%
Sales tax
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Certain items are exempt from tax, notably most clothing, footwear, and food. However, there are exceptions to this statewide rate. In Urban Enterprise Zones, UEZ-impacted business districts, and in both Salem County and Cumberland County, sales tax is collected at 50% of the regular rate (currently 3.3125%) on certain items. In addition, local sales taxes are imposed on sales of certain items sold in Atlantic City and Cape May County. The highest sales tax in the state is in Atlantic City at 12.875% (although certain items are exempt from the additional tax). A full list of Urban Enterprise Zones is
Sales taxes in the United States
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and 2%). These additional taxes increase the total general sales tax rates to 7.5% in Fargo, Valley City and Pembina; 7.25% in Grafton; 7.5% in Minot; 6.75% in Grand Forks; 6.5% in West Fargo, Dickinson, and Williston; and 6.0% in Bismarck and Mandan. Ohio has a 5.75% state sales tax. Counties may levy a permissive sales tax of 0.25% up to 1.5% and transit authorities, mass transit districts usually centered on one primary county, may levy a sales tax of 0.25% up to 1.5%. Cuyahoga County has the highest statewide sales tax rate (8%). Tax increments may not be less
Sales taxes in the United States
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areas of the county and all cities within the county except those cities where voters previously approved local city sales tax increases which have higher combined sales tax rates. The 0.25% sales tax increase is currently not collected in six cities within Los Angeles County where the aggregate sales tax rate is not 0.25 percent or more below the legal local tax rate cap. Those six cities, which have a combined sales tax rate of 10.25%, are Compton, Long Beach, Lynwood, Pico Rivera, Santa Monica, and South Gate. However, if a sales tax rate for any of the cities expires
Sales and use taxes in California
446559
provided 30% of the income tax revenue; around 2,000 people had sufficient income to be taxed at the highest marginal rate of 9.5%. Vermont's general state sales tax rate is 6%, which is imposed on sales of tangible personal property, amusement charges, fabrication charges, some public utility charges and some service contracts. Some towns and cities impose an additional 1% Local Option Tax. There are 46 exemptions from the sales tax, including exemptions for food, medical items, manufacturing machinery, equipment and fuel, residential fuel and electricity, clothing, and shoes. A use tax is imposed on the buyer at the same
Vermont
8239680
1% may be approved by voters for any combination of county sales tax, transportation districts, economic development, and/or crime prevention. The average sales tax in Texas amounts to 8.25 percent. The state determines the items subject to sales tax, which all other entities must follow. Motor vehicle sales are subject only to the 6.25% state sales tax. Food, except for prepared food, and non-prescription medicines are among the major items exempt from sales tax. While property taxes are among the highest in the nation, property costs are also among the lowest in the nation. Property taxes constitute the majority of
Economy of Texas
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waste or mismanagement of sales tax proceeds by a local government, when there has been controversial or questionable spending of sales tax proceeds by a local government (particularly where sales tax proceeds are used to pay for excessive public employee salaries and/or benefits such as pensions), when the quality of the programs and services being financed from sales tax proceeds is not at a high level expected by voters, when the local sales tax rate is excessive or unreasonably high (particularly in situations where a significant local sales tax increase was narrowly approved by the voters), or when promises previously
Sales and use taxes in California
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been significant waste and/or mismanagement of sales tax proceeds, when there has been controversial or questionable spending of sales tax proceeds by a local government such as using tax proceeds to pay for excessive public employee salaries and/or benefits like pensions and retiree healthcare, when the programs and services financed from sales tax proceeds are not delivered at an acceptably high level, when voters desire to lower the local sales tax rate in situations where the current tax rate is excessive and/or unreasonably high, when another tax election is desired especially where a local sales tax increase was narrowly approved
1996 California Proposition 218 (Local Initiative Power)
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2012, 13.725%, was found in Tuba City. Arkansas has a state sales tax of 6.50%. City taxes range from an additional 0.25% to 3.5% and county taxes range from 0% to an additional 3.25%. Including city and county taxes, the highest sales tax rate is 11.625% in the portions of Mansfield that are in Scott County. Effective July 1, 2011, Arkansas' state sales tax on unprepared food (groceries) was reduced to 1.5% from 2%. Sales taxes on groceries had previously been reduced to 2% from 3% on July 1, 2009 and to 3% from 6% on July 1, 2007. Local
Sales taxes in the United States
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the PST. The HST was introduced to Prince Edward Island on 1 April 2013 which dropped the tax on goods to 14% from 15.5% and raised the tax on services from 5% (GST) to 14%. Harmonized sales tax The harmonized sales tax (HST) is a consumption tax in Canada. It is used in provinces where both the federal goods and services tax (GST) and the regional provincial sales tax (PST) have been combined into a single value added sales tax. The HST is in effect in five of the ten Canadian provinces: New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario
Harmonized sales tax
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State of Illinois, the government of the United States of America, or the government of any foreign country. The city of Chicago has one of the highest total sales tax of all major U.S. cities (10.25%). It was previously this high (10.25%), however, it was reduced when Cook County lowered its sales tax by 0.5% in July 2010, another 0.25% in January 2012, and another 0.25% in January 2013. Chicago charges a 2.25% food tax on regular groceries and drug purchases, and has an additional 3% soft drink tax (totaling 13.25%). An additional 1% is charged for prepared food and
Sales taxes in the United States
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sales tax, 89 municipalities collect a local sales tax, from 1.0–7.5%, typically 3–5%. Other local taxes levied include raw fish taxes, hotel, motel, and bed-and-breakfast 'bed' taxes, severance taxes, liquor and tobacco taxes, gaming (pull tabs) taxes, tire taxes and fuel transfer taxes. A part of the revenue collected from certain state taxes and license fees (such as petroleum, aviation motor fuel, telephone cooperative) is shared with municipalities in Alaska. Fairbanks has one of the highest property taxes in the state as no sales or income taxes are assessed in the Fairbanks North Star Borough (FNSB). A sales tax for
Alaska
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the State of Ohio. Ohio also has a gross receipts tax called the Commercial Activity Tax (CAT) that is applicable only to businesses but shares some similarities to a sales tax. "Food for human consumption off the premises where sold" is exempt from sales tax, with the exception of sodas and alcoholic beverages which are taxed at the full rate. Oklahoma has a 4.5% sales tax rate. Counties and cities each have an additional sales tax which varies, but is generally up to 2% for counties and 2-5% for cities resulting in a total sales tax rate of 7.5% to
Sales taxes in the United States
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Harmonized sales tax The harmonized sales tax (HST) is a consumption tax in Canada. It is used in provinces where both the federal goods and services tax (GST) and the regional provincial sales tax (PST) have been combined into a single value added sales tax. The HST is in effect in five of the ten Canadian provinces: New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island. The HST is collected by the Canada Revenue Agency (CRA), which remits the appropriate amounts to the participating provinces. The HST may differ across these five provinces, as each province will
Harmonized sales tax
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the percentage of per capita income. The rankings showed Vermont had a per capita tax load of $5,387, 14.1% of the per capita income of $38,306. Vermont collects personal income tax in a progressive structure of five different income brackets, with marginal tax rates ranging from 3.6% to 9.5%. In 2008, the top one percent of the residents provided 30% of the income tax revenue. 2,000 people had sufficient income to be taxed at the highest marginal rate of 9.5%. Vermont's general sales tax rate is 6%, which is imposed on sales of tangible personal property, amusement charges, fabrication charges,
Government of Vermont
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we derive the largest share of the revenue that runs state government. It’s only a small step from giving Amazon a five-year exemption from collecting the sales taxes from S.C. residents to giving that same break to Walmart, Target and all the other businesses that offer online shopping — as one Senate amendment actually proposed to do." As of January 1, 2017, Amazon began collecting sales tax in Louisiana. Louisiana citizens, whose state has one of the highest average combined sales tax rate in the nation, now pay, on average, 9% in state and local sales and use tax for
Amazon tax
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the measure reads: This proposed law would remove the Massachusetts sales tax on alcoholic beverages and alcohol, where the sale of such beverages and alcohol or their importation into the state is already subject to a separate excise tax under state law. The proposed law would take effect on January 1, 2011. A YES VOTE would remove the state sales tax on alcoholic beverages and alcohol where their sale or importation into the state is subject to an excise tax under state law. A NO VOTE would make no change in the state sales tax on alcoholic beverages and alcohol.
Massachusetts No Sales Tax for Alcohol Initiative
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may be subject to sales tax to the builder, the subcontractor, or the person engaging the builder, or may be wholly exempt from sales tax. Most sales tax laws do not apply to most payments for intangible property. Some states tax certain forms of intangible property transfers or licenses. A common transaction subject to sales tax is license of "shrink wrap" software. State courts have often found that numerous transfers of intangible rights are to be considered subject to sales tax where not specifically exempted. All states exempt from sales or use tax purchases of goods made for resale in
Sales taxes in the United States
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tax that is applied uniformly. This means that it hits lower-income individuals harder". Higher sales taxes have been shown to have many different effects on local economies. With higher taxes, more consumers are starting to reconsider where they shop, according to a study conducted in Minnesota and Wisconsin, where the sales tax was raised on cigarettes. Effects of higher sales tax were not shown immediately in sales, but about six months after the taxes were raised. High sales taxes can be used to relieve property taxes but only when property taxes are lowered subsequently. Studies that have shown this correlation
Sales tax
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by jurisdiction and range from less than 1% to over 10%. Sales tax is collected by the seller at the time of sale. Use tax is self assessed by a buyer who has not paid sales tax on a taxable purchase. Unlike the value added tax, a sales tax is imposed only at the retail level. In cases where items are sold at retail more than once, such as used cars, the sales tax can be charged on the same item indefinitely. The definition of retail sales and what goods and services are taxable vary among the states. Nearly all
Sales taxes in the United States
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Amazon tax Amazon tax collection policy has changed over the years. In the U.S., state and local sales taxes are levied by state and local governments, not at the federal level. In most countries where Amazon operates, a sales tax or value added tax is uniform throughout the country, and Amazon is obliged to collect it from all customers. Many U.S. states have passed online shopping sales tax laws designed to compel Amazon.com and other e-commerce retailers to collect state and local sales taxes from its customers. Amazon.com originally collected sales tax only from five states as of 2011, but
Amazon tax
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power, hydroelectricity, and wood fuel. The state has no general sales tax and no personal state income tax (the state does tax, at a 5 percent rate, income from dividends and interest), and the legislature has exercised fiscal restraint. Efforts to diversify the state's general economy have been ongoing. New Hampshire's lack of a broad-based tax system has resulted in the state's local communities having some of the nation's highest property taxes. However, the state's overall tax burden is relatively low; in 2010 New Hampshire ranked 44th highest among states in combined average state and local tax burden. As of
New Hampshire
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tax is not paid. Use taxes are functionally equivalent to sales taxes. The sales and use taxes, taken together, "provide a uniform tax upon either the sale or the use of all tangible personal property irrespective of where it may be purchased." Some states permit offset of sales taxes paid in other states on the purchased goods against use tax in the taxpayer's state. The amount subject to sales tax is generally the net sales price. Such price is generally after any applicable discounts. Some states exempt a portion of sales or purchase price from tax for some classes of
Sales taxes in the United States
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Use tax A use tax is a type of tax levied in the United States by numerous state governments. It is essentially the same as a sales tax but is applied not where a product or service was sold but where a merchant bought a product or service and then converted it for its own use, without having paid tax when it was initially purchased. Use taxes are functionally equivalent to sales taxes. They are typically levied upon the use, storage, enjoyment, or other consumption in the state of tangible personal property that has not been subjected to a sales
Use tax
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is a sales tax; the former is protectionist and the VAT, like a sales tax, is not. Freund uses the example of Maryland's 6% sales tax, which applies to all imports regardless of where they are produced. It is not a destination-based consumption tax, therefore it is neither protectionist nor discriminatory unlike the proposed DBCFT. The destination-based cash-flow tax (or DBCFT) allows for wage deductions, while a VAT does not. Under the cash-flow tax with border adjustment, imports would be charged a uniform 20% and unlike "the sales tax, the cash-flow tax with border adjustment would favor domestically produced goods."
Destination-based cash flow tax
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also proposed a plan to reform health-care, mainly through the private sector, by using tax breaks and negotiation to keep prices down. In a 2008 evaluation of state Governors' fiscal policies, the libertarian Cato Institute praised Huntsman's conservative tax policies, ranking him in a tie for fifth place on overall fiscal policy. He was particularly lauded for his efforts to cut taxes, where he received the highest score on tax policy of all 50 governors. The report specifically highlighted his reductions of the sales tax and simplification of the tax code. Huntsman strongly supported civil unions for years but not
Jon Huntsman 2012 presidential campaign
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Puerto Rico Sales and Use Tax The Puerto Rico Sales and Use Tax (SUT, , IVU) is the combined sales and use tax applied to most sales in Puerto Rico. The tax is composed of two portions: 1.5% that belongs to the municipality where the sale was executed, and 5.5% that belongs to the state government. Furthermore, half of the portion that belongs to the state government is destined to the Urgent Interest Fund Corporation (COFINA) to pay the public debt of Puerto Rico, making it a three-tier tax. On July 4, 2006, the government approved Law Number 117, The
Puerto Rico Sales and Use Tax
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state level, with local entities being allowed to charge additional amounts. For example, the city of Austin levies a 9% hotel/motel tax, bringing the total to 15%, trailing only Houston for the highest total lodging tax statewide, at 17%. Lodging for travelers on official government business is specifically exempt from tax but the traveler must submit an exemption form to the hotel/motel and provide proof of official status. If merchants file and pay their sales and use tax on time, they may subtract 1/2 percent of the tax collected as a discount, to encourage prompt payment and to compensate the
Sales taxes in the United States
2019757
a rate of two percent in 399 BC. At that period of time, Athens did not rely on government agencies to collect its taxes; the responsibility was delegated to the highest bidder, a practice known as tax farming. The Roman emperor Augustus collected funds for his military aerarium in AD 6 with a one percent general sales tax, known as the "centesima rerum venalium" (hundredth of the value of everything sold). The Roman sales tax was later reduced to a half percent ("ducentesima") by Tiberius, then abolished completely by Caligula. Although the United States government has never used a general
Sales tax
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third effort. On February 29, 2008, the Cook County Board, by a measure of 10-7, passed a budget initiated by Stroger. Stroger's budget contained a tax increase of 1 percentage point, the largest ever passed by Cook County, with the intent of creating more than 1,000 new County jobs. As a result of Stroger's bill, on July 1 the County sales tax increased from 0.75 percent to 1.75 percent bringing Chicago's overall sales tax to 10.25 percent, which was the highest of any major U.S. city, while the sales tax was a minimum of 8.75 percent in suburban Cook County.
Todd Stroger
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sales taxes and special local taxes, such as the 0.5% supplemental sales tax in Minneapolis. The cities of St. Paul, Rochester, Duluth and St. Cloud have similar taxes. Excise taxes are levied on alcohol, tobacco, and motor fuel. The state imposes a use tax on items purchased elsewhere but used within Minnesota. Owners of real property in Minnesota pay property tax to their county, municipality, school district, and special taxing districts. The overall state and local tax burden is calculated to average 11.9% in 2006, ranking 4th highest in the country. Minnesota residents and visitors can legally gamble on the
Economy of Minnesota
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at the state level and 1% at the municipal level. On February 6, 2008 the governor of the island proposed to remove the state part of the IVU. Puerto Rico Sales and Use Tax The Puerto Rico Sales and Use Tax (SUT, , IVU) is the combined sales and use tax applied to most sales in Puerto Rico. The tax is composed of two portions: 1.5% that belongs to the municipality where the sale was executed, and 5.5% that belongs to the state government. Furthermore, half of the portion that belongs to the state government is destined to the Urgent
Puerto Rico Sales and Use Tax
4789785
the best state in the United States based upon 60 metrics including healthcare, education, crime, infrastructure, opportunity, economy, and government. The Bay State ranked number one in education, number two in healthcare, and number five in the handling of the economy. Depending on how it is calculated, state and local tax burden in Massachusetts has been estimated among U.S. states and Washington D.C. as 21st-highest (11.44% or $6,163 per year for a household with nationwide median income) or 25th-highest overall with below-average corporate taxes (39th-highest), above-average personal income taxes, (13th-highest), above-average sales tax (18th-highest), and below-average property taxes (46th-highest). In
Massachusetts
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made by local politicians about the spending of local sales tax proceeds are broken after voter approval of the sales tax (particularly in situations where local politicians made legally nonbinding promises concerning the spending of general sales tax proceeds that are not legally restricted for specific purposes). A local sales tax used to repay bonds is a legally more complex situation because federal contract impairment issues may preclude the exercise of the local initiative power under Proposition 218. Local voter-approved transportation sales taxes often include at least a portion of the tax proceeds to repay bonds. Advice from legal counsel
Sales and use taxes in California
19565827
by voters or otherwise approved under controversial circumstances, or when campaign promises made by local politicians about the expenditure of local sales tax proceeds are broken "after" voter approval, including in situations where legally nonbinding promises concerning the spending of general sales tax proceeds were made by local politicians before the election. In some situations, all or a portion of local sales tax proceeds may be pledged to repay bonds issued by the local government (such as for transportation purposes). Consultation with legal counsel is usually needed where bonds are issued and sales tax proceeds are pledged by the local
1996 California Proposition 218 (Local Initiative Power)
11550402
some public utility charges and some service contracts (some towns and cities impose an additional 1% Local Option Tax). There are 46 exemptions from the tax which include medical items, food, manufacturing machinery, equipment and fuel, residential fuel and electricity, clothing, and shoes. A use tax is imposed on the buyer at the same rate as the sales tax. The buyer pays the use tax when the seller fails to collect the sales tax or the items are purchased from a source where no tax is collected. The use tax applies to items taxable under the sales tax. Vermont does
Government of Vermont
2129886
the provinces of British Columbia, Saskatchewan, Manitoba (Retail Sales Tax or RST) and Quebec (Quebec Sales Tax or QST, French: Taxe de vente du Québec or TVQ). Prince Edward Island switched to a HST on April 1, 2013, the same date that British Columbia reverted to a separate GST/PST after their adoption of a HST in 2010 was rejected in a referendum. Goods to which the tax is applied vary by province, as does the rate. In all provinces where the provincial sales tax is collected, the tax is imposed on the sale price without GST (in the past, in
Sales taxes in Canada
446560
rate as the sales tax. The buyer pays the use tax when the seller fails to collect the sales tax or the items are purchased from a source where no tax is collected. The use tax applies to items taxable under the sales tax. Vermont does not collect inheritance taxes, but does impose a state estate tax; a Vermont estate tax return must be filed if the estate must file a federal estate tax return (the requirement for which depends on federal law). Vermont does not collect a state gift tax. Property taxes are levied by municipalities for the support
Vermont
17137335
transactions. This resembles a sales tax, but unlike most states' sales taxes it applies to services, as well as tangible goods. Normally, the provider or seller passes the tax on to the purchaser, but legal incidence and burden apply to the business, as an excise tax. At the state level, gross receipts on most types of transactions are taxed at a rate of 5.125%. Local jurisdictions also levy gross receipt taxes at rates that vary around the state. The lowest combined state and local GRT rate, as of 2012-13, is 5.5% in unincorporated Lea County. The highest combined rate is
Taxation in New Mexico
14439856
minimum is not available to the public. As a result, the state relies on property and income taxes for its revenue. Oregon has the fifth highest personal income tax in the nation. According to the U.S. Census Bureau, Oregon ranked 41st out of the 50 states in taxes per capita in 2005 with an average amount paid of 1,791.45. A few local governments levy sales taxes on services: the city of Ashland, for example, collects a 5% sales tax on prepared food. The City of Portland imposes an Arts Education and Access Income Tax on residents over 18 – a
Oregon
909271
and Amazon is obliged to collect it from all customers. Proponents of forcing Amazon.com to collect sales tax—at least in states where it maintains a physical presence—argue the corporation wields an anti-competitive advantage over storefront businesses forced to collect sales tax.<ref name="Bloomberg/BusinessWeek"></ref> Many U.S. states in the 21st century have passed online shopping sales tax laws designed to compel Amazon.com and other e-commerce retailers to collect state and local sales taxes from its customers. Amazon.com originally collected sales tax only from five states , but , Amazon collects sales taxes from customers in all 45 states that have a state
Amazon (company)
5842823
of its fiduciary duties. Sellers of taxable property must file tax returns with each jurisdiction in which they are required to collect sales tax. Most jurisdictions require that returns be filed monthly, though sellers with small amounts of tax due may be allowed to file less frequently. Sales tax returns typically report all sales, taxable sales, sales by category of exemption, and the amount of tax due. Where multiple tax rates are imposed (such as on different classes of property sold), these amounts are typically reported for each rate. Some states combine returns for state and local sales taxes, but
Sales taxes in the United States
15418514
the corporation wields an anti-competitive advantage over storefront businesses forced to collect sales tax.<ref name="Bloomberg/BusinessWeek"></ref> Tax opponents respond to this argument by pointing out that individual states could make storefront businesses more competitive by lowering or entirely eliminating sales tax. Amazon is under increasing legal and political pressure from state governments, traditional retailers and other groups because of its refusal to collect sales tax in 41 of the 45 states with a statewide sales tax (as of March 2017). Those states include several where Amazon has a clear physical presence via distribution centers and wholly owned subsidiaries. Amazon says it
Amazon tax
5842863
The serviceperson may satisfy this tax by paying Use Tax to his supplier of paper and ink or, alternatively, may charge Service Use Tax to the purchaser of the business cards and remit the amount collected as Service Occupation Tax on the serviceperson's tax return. The service itself, however, is not subject to tax. Qualifying food, drugs, medicines and medical appliances have sales tax of 1% plus local home rule tax depending on the location where purchased. Newspapers and magazines are exempt from sales tax as are legal tender, currency, medallions, bullion or gold or silver coinage issued by the
Sales taxes in the United States
15418513
as of April 2017 collects sales taxes from customers in all 45 states that have a state sales tax and in Washington, D.C. Amazon does not collect sales taxes from Alaska, Delaware, Montana, New Hampshire, and Oregon, since those states do not have state sales taxes. Additionally, approximately half of all Amazon.com purchases are sold on the Amazon Marketplace through 3rd-party vendors, and these purchases remain free of tax except for in Washington state, where these purchases (starting in 2018) are now taxed. Proponents of forcing Amazon.com to collect sales tax—at least in states where it maintains a physical presence—argue
Amazon tax
4942484
the three-tier system is the State of Washington. In November 2011, voters in Washington approved Initiative 1183, which dismantled the state-operated retailing system and removed the legal requirement for a three-tier distribution system for alcoholic beverage sales. Under the modified law, the prior state-operated liquor retailing system was eliminated in favor of heavily taxed private retailing. By a substantial margin, Washington has the highest liquor tax rate in the nation. With a liquor tax rate around $35 per gallon, its liquor tax is about 50% higher than in Oregon, which has the next highest rate. In Washington, retailers may bypass
Three-tier system (alcohol distribution)
4666432
tax that would have been imposed on the sale of the property, if the sale had occurred within the state's taxing jurisdiction. The use tax is typically assessed at the same rate as the sales tax that would have been owed, and generally the taxability of the good or service does not vary. However, there are some instances where the sales tax rate and the use tax rate vary. For example, a resident of Massachusetts, with a 6.25% "sales and use tax" on certain goods and services, purchases non-exempt goods or services in New Hampshire for use, storage or other
Use tax
223205
were flat, collections have trended higher as the economy has grown and two rate increases have been enacted. If there had been no change in sales tax rates or in the economy, the total sales tax collections for 2003 whould have been $1,797 million, compared to $805.3 million in 1990. However, they instead amounted to $1,630 million an inflation adjusted reduction of 10%. The state sales tax is a combined destination-based tax, meaning a single tax is applied that includes state, county, and local taxes, and the rate is based on where the consumer takes possession of the goods or
Kansas
4764130
Goods and Services Tax (New Zealand) Goods and Services Tax (GST) is a value-added tax or consumption tax for goods and services consumed in New Zealand. GST in New Zealand is designed to be a broad-based system with few exemptions, such as for rents collected on residential rental properties, donations, precious metals and financial services. Because it is broad based, it collects 31.4% of total taxation, making New Zealand the highest taxed country in the OECD in terms of sales tax as a proportion of GDP. The rate for GST effective since 1 October 2010 is 15%. This 15% tax
Goods and Services Tax (New Zealand)
198222
5.25%. There are two rates for state sales tax: 6.25% for general merchandise and 1% for qualifying food, drugs, and medical appliances. The property tax is a major source of tax revenue for local government taxing districts. The property tax is a local—not state—tax, imposed by local government taxing districts, which include counties, townships, municipalities, school districts, and special taxation districts. The property tax in Illinois is imposed only on real property. Illinois's major agricultural outputs are corn, soybeans, hogs, cattle, dairy products, and wheat. In most years, Illinois is either the first or second state for the highest production
Illinois
5842814
goods used as supplies may not. Many states tax rental of tangible personal property. Often the tax is not dependent on the use to which the property will be put. Only Florida charges sales tax on the rental of commercial real estate. Many states exempt charitable, religious, and certain other organizations from sales or use taxes on goods purchased for the organization's use. Generally such exemption does not apply to a trade or business conducted by the organization. The states imposing sales taxes also impose a similar tax on buyers of taxable property or services in those cases where sales
Sales taxes in the United States
11579690
and Long Island, with a median property tax bill for an owner-occupied home in Westchester of $6,826 - the highest among the state's 57 counties and more than twice the statewide median of $2,847. As well, all of Westchester's 40 school districts raised their property taxes that year, on top of the 14.9 percent increase in the county property tax levy that Kaplowitz approved after the state rejected their request to hike the county portion of the sales tax by 1 point. In late 2003, warned that another attempt to increase the lobby the State Assembly to increase sales tax
Mike Kaplowitz
20867284
opened at number one on the "Billboard" 200 with 434,000 album-equivalent units, consisting of 252,000 traditional album sales as well as 225 million streams, giving Eminem his largest amount of streams within a week. He also is in the top ten for highest first week sales of 2018. It became his ninth consecutive number-one album in the country, tying him with Garth Brooks and The Rolling Stones for fifth-most entries to top the chart, and had the year's fifth-highest first-week sales in the USA.. He also topped the Artist 100 chart due to album sales and song streams. The album
Kamikaze (Eminem album)
4666434
charge the native state's sales tax on goods shipped out of state, meaning all goods ordered from out-of-state are essentially free of sales tax. The purchaser is therefore required to declare and pay the use tax to his home state on these ordered goods. The assessing jurisdiction may make the use tax payable annually, but some states require a monthly payment. For example, where a Vermont resident has not paid at least 6% sales tax on property brought in for use in the state, Vermont law requires filing a tax return (Form SU-452 and payment) by the 20th day of
Use tax
15252036
by local voters during the November 2016 election went into effect. The combined sales tax rate in Los Angeles County increased from 8.75% to 9.25% in all unincorporated areas of the county and all cities within the county except those cities where voters previously approved local city sales tax increases which have higher combined sales tax rates. On October 1, 2017, the Los Angeles County homeless programs/services sales tax increase of 0.25% approved by voters during the March 7, 2017 election became operative. The combined sales tax rate in Los Angeles County increased from 9.25% to 9.50% in all unincorporated
Sales and use taxes in California
10591114
reporting requirements, the STMS platform approach to tax compliance could be even more helpful if the SST group of states manages to obtain the Federal legislation that would permit states to mandate collections by out-of state e-tailers and mail order companies. Existing law validated by the Supreme Court of the United States prohibits states from mandating tax collection by companies that don’t have a physical presence in the state where a sale is made, but the United States Congress is considering alternatives that may overturn this Constitutional provision. Sales Tax Management Services Sales Tax Management Service (STMS) is a technology
Sales Tax Management Services
19819300
as a destination-based tax, where the tax rate is based on the location of the consumer and applied to the sales price. Confusingly, the terms VAT, GST, consumption tax and sales tax are sometimes used interchangeably. VAT raises about a fifth of total tax revenues both worldwide and among the members of the Organisation for Economic Co-operation and Development (OECD). As of 2018, 166 of the world's approximately 193 countries employ a VAT, including all OECD members except the United States, which uses a sales tax system instead. There are two main methods of calculating VAT: the credit-invoice or invoice-based
Value-added tax
15418549
taxes in New Mexico. New Mexico's Revenue Department says that just over 5 percent sales tax will be collected with some going to the state's general fund and some going to the cities where the product was purchased. This 5 percent is much less than the average combined state and local sales tax of 7.51%. Several bills are currently under consideration to reform New Mexico's tax laws and force online retailers to collect sales taxes. In 2008, New York passed a law that would force online retailers to collect sales taxes on shipments to state residents. Shortly after the law
Amazon tax
378522
a lower percentage; the national average is 24.3%; with the highest percentage being in Colorado at 41%). In 2011, South Carolina ranked first in the country in the rate of women killed by men. As the 21st century progresses, South Carolina attracts new business by having a 5% corporate income tax rate, no state property tax, no local income tax, no inventory tax, no sales tax on manufacturing equipment, industrial power or materials for finished products; no wholesale tax, no unitary tax on worldwide profits. Starting January 1, 2013, South Carolina was one of the first states that no longer
South Carolina
5570889
taxes at the provincial level; some provinces have a single tax combining both forms. In addition, most jurisdictions which levy a VAT or sales tax also legally require their residents to report and pay the tax on items purchased in another jurisdiction. This means that consumers who purchase something in a lower-taxed or untaxed jurisdiction with the intention of avoiding VAT or sales tax in their home jurisdiction are technically breaking the law in most cases. This is especially prevalent in federal countries like the US and Canada where sub-national jurisdictions charge varying rates of VAT or sales tax. In
Tax evasion
1056037
has the highest income and education levels of any community within the Rockford metropolitan area. Key to the village economy is million square foot CherryVale Mall, one of the first enclosed shopping malls in Illinois. CherryVale, which draws shoppers from a radius of over , produces the greatest single source of revenue for the village, in the form of a 1% sales tax that is levied and collected by the State of Illinois and then distributed to the community. Because of this sales tax, Cherry Valley is one of only a handful of communities within Illinois that does not levy
Cherry Valley, Illinois
15418518
in those states and was able to avoid collecting sales taxes. Other states (such as New York) took stricter stances and required online retailers to collect sales taxes on all sales and shipments to residents of their states whether or not the retailer had a physical presence in the state. Finally, many agreements and laws require Amazon and other online retailers to only collect state sales tax, not local sales taxes. On October 1, 2015, Alabama allowed retailers to voluntarily join their Simplified Sellers Use Tax program in which sellers would collect a flat 8% sales tax no matter where
Amazon tax
14061058
not real property. In other states, state tax boards have released bulletins to explain what products are subject to sales and use taxes, tax administrative boards have handed down revenue rulings, and statutes have been amended to define "tangible personal property" to include digital goods and therefore subject them to sales tax. The remaining states that tax downloads have specific statutes that define exactly what is to be taxed and what is not. The similarity in these taxes is that they are based on a sales-type scheme, where each download (or group of downloads) is taxed like a purchase in
Taxation of digital goods
15188
same rate as other goods, and one of two states (the other being neighboring Mississippi) which fully taxes groceries without any offsetting relief for low-income families. (Most states exempt groceries from sales tax or apply a lower tax rate.) Alabama's income tax on poor working families is among the highest in the United States. Alabama is the only state that levies income tax on a family of four with income as low as $4,600, which is barely one-quarter of the federal poverty line. Alabama's threshold is the lowest among the 41 states and the District of Columbia with income taxes.
Alabama
412013
the total sales tax to between 8.5% and 9.75%, one of the highest levels in the nation. Intangible property tax is assessed on the shares of stock of stockholders of any loan company, investment company, insurance company or for-profit cemetery companies. The assessment ratio is 40% of the value multiplied by the tax rate for the jurisdiction. Tennessee imposes an inheritance tax on decedents' estates that exceed maximum single exemption limits ($1,000,000 for deaths in 2006 and thereafter). Tourism contributes billions of dollars every year to the state's economy and Tennessee is ranked among the Top 10 destinations in the
Tennessee
1234598
the city was $22,167. About 3.3% of families and 3.7% of the population were below the poverty line, including 5.0% of those under age 18 and 14.7% of those age 65 or over. As of 2007, Buda recorded $384 million of assessed property value within city limits. Based on a February 2007 survey of 14 central Texas cities, Buda had the highest per capita assessed property value at $85,431 per resident. The city recorded more than $3 million in sales tax collection in 2006, for a per capita sales tax collection of $675. Buda, Texas Buda ( ) is a
Buda, Texas
10831192
its own estate tax. Washington state has the 18th highest per capita effective tax rate in the United States, as of 2017. Their tax policy differs from neighboring Oregon's, which levies no sales tax, but does levy a personal income tax. This leads to border economic anomalies in the Portland-Vancouver metropolitan area. Additional border economies exist with neighboring Canada and Idaho. Washington is a leading agricultural state. (The following figures are from the Washington State Department of Agriculture and the USDA, National Agricultural Statistics Service, Washington Field Office.) For 2013, the total value of Washington's agricultural products was $10.2 billion.
Washington (state)
909270
was able to identify counterfeit products with a success rate of 90%. Amazon was sourcing and selling items without properly determining if they are genuine. Mobile Star LLC settled with Apple for an undisclosed amount on April 27, 2017. Amazon's state sales tax collection policy has changed over the years since it did not collect any sales taxes in its early years. In the U.S., state and local sales taxes are levied by state and local governments, not at the federal level. In most countries where Amazon operates, a sales tax or value added tax is uniform throughout the country,
Amazon (company)
8317594
large public relations events for each tax-funded project that was completed, declaring in dedication speeches that the sales tax had made the project possible. In 1960, Kentucky had one of the highest dropout rates in the nation, and ranked second only to Arkansas in the number of one-room schools. Fewer than half of the state's high school graduates attended college. Many teachers educated in Kentucky sought higher salaries available in other states. Combs' biennial budget, passed by the General Assembly in 1960, used money from the new sales tax to increase school funds by fifty percent and establish the state
Bert Combs
5842810
files returns and remits the tax to the state. In states where the tax is on the seller, it is customary for the seller to demand reimbursement from the buyer. Procedural rules vary widely. Sellers generally must collect tax from in-state purchasers unless the purchaser provides an exemption certificate. Most states allow or require electronic remittance. Sales taxes are imposed only on "taxable" transfers of goods or services. The tax is computed as the tax rate times the taxable transaction value. Rates vary by state, and by locality within a state. Not all types of transfers are taxable. The tax
Sales taxes in the United States
2019761
Sales Tax (PST) or the Harmonized Sales Tax (HST), which is a single, blended combination of the GST and PST. Businesses can reduce the impact of sales tax for themselves and their customers by planning for the tax consequences of all activities. Sales tax avoidance often includes the following: In the United States, online retailers without physical presence in a given state may ship goods to customers there without collecting that state's sales tax because as of 2011, there is no federal sales tax. Amazon.com has been criticized for not collecting sales tax and has intentionally disaffiliated itself from businesses
Sales tax
14439587
Fort Madison. In 2016, Iowa was the headquarters for three of the top 2,000 companies for revenue. They include Principal Financial, Rockwell Collins, and American Equity Investment. Iowa is also headquarters to other companies including Hy-Vee, Pella Corporation, Vermeer Company, Kum & Go gas stations, Von Maur, Pioneer Hi-Bred, and Fareway. Iowa imposes taxes on net state income of individuals, estates, and trusts. There are nine income tax brackets, ranging from 0.36% to 8.98%, as well as four corporate income tax brackets ranging from 6-12%, giving Iowa the country's highest marginal corporate tax rate. The state sales tax rate is
Iowa
18736697
it the best option or a political money grab?". There are three principal arguments advanced by "Safe Roads Yes!", the ballot committee supporting the proposal: Proposal 1 (1) guarantees that all taxes on gasoline are allocated to transportation; (2) guarantees that all money in the School Aid Fund goes toward K-12 education; and (3) extends pavement warranties so that road builders pay for repairs to poorly constructed roads. The proposal was to remove the sales tax from Michigan fuel sales. This was claimed to remedy the anomalous perverse situation where "Michigan charges some of the highest taxes on fuel in
Michigan Ballot Proposal 2015-1
11914888
the inflation rate, vehicle fuel-economy, or other factors The table below includes state and local taxes and fees. The American Petroleum Institute uses a weighted average of local taxes by population of each municipality to come up with an average tax for the entire state. Similarly, the national average is weighted by volume of fuel sold in each state. Because many of the states with the highest taxes also have higher populations, more states have below average taxes than above average taxes. Most states exempt gasoline from general sales taxes. However, several states do collect full or partial sales tax
Fuel taxes in the United States
2019762
in certain states to continue doing so legally. Sales tax A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allows the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax. Often laws provide for the exemption of certain goods or services from sales and use tax. Conventional or retail sales tax is levied on the sale of a
Sales tax
17249478
online sellers, only need to collect sales and use tax for states where they have a physical presence. If an online retailer does not collect sales tax at the time of purchase, the consumer must pay the use tax due directly to the state. While business compliance with use tax filing is quite high, consumer compliance is rather low. The Marketplace Fairness Act seeks to increase compliance and tax collections by shifting the responsibility for payment from consumers to retailers. "This summary is based largely on the summary provided by the Congressional Research Service, a public domain source." The Marketplace
Marketplace Fairness Act