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Delaware State Taxes Article
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The Contributions of State Taxes to State Revenue
from:State taxes are compulsory contributions to state revenue levied by the government on personal income and business profits. They may also be additional amounts to the cost of some goods, services and transactions. All states have their own tax system where they acquire the necessary revenue to maintain their governments through tax collection, fees, and licenses. With the revenue that the government receives through these state taxes, it makes public services available to their citizens. Some examples of these public services are health and welfare benefits, public schools, police protection and the operation of the state government.
There are many types of state taxes. Here are some of the most common:
1) Personal Income Tax
The first modern personal income tax system was originated in 1911 by the State of Wisconsin. This is the tax taken from an individual’s personal income.
2) State Sales Tax
This tax is levied on the sale of goods and services. Below are the three different types of sales taxes:
• Vendor Tax
This taxes the person doing business. It is levied on the amount of goods sold.
• Consumer Tax
This taxes retail sales. It is added to the original price of what was being sold. The vendor at a store collects this tax from the buyer and then sends the money to the state.
• Combination Vendor-Consumer Tax
This one taxes the vendor who is then required to pass the tax on to the consumer.
3) Property Tax
The revenue from this type of state taxes usually goes towards financing public services, such as police protection, public schools and sanitation. The amount of tax to be paid is figured on the total value of the property or on a certain percentage of the value.
4) Other State Taxes
There are other state taxes that states may impose in addition to personal income tax, sales tax, and property tax, and these include fuel tax, inheritance tax, and corporate income tax.
• Fuel Tax
This is the tax on gasoline and diesel fuel purchased within the state. Most of the time, the tax on gasoline and diesel fuel is a cents-per-gallon tax.
• Inheritance Tax and Estate Tax
These are imposed on the transfer of property after the owner's death wherein the beneficiary of the property must pay the taxes.
• Corporate Income Tax
This is almost the same as the individual income tax. Most states impose this system which makes corporations subjected to income tax the way individuals are. State corporate income tax system uses the graduated method in some states and the flat rate method in others. Some states purposely keep their corporate income tax rates lower than other states in order to attract new businesses to their states.
Delaware State Taxes News
DELAWARE: Committee OKs 1 percent pay raise for state workers, retirees - Delmarva Daily Times
DELAWARE: Committee OKs 1 percent pay raise for state workers, retirees Delmarva Daily Times DOVER — Delaware public employees and retirees would see a 1 percent bump in their pay July 1 under a plan incorporated Thursday into next year's state budget. The legislative committee responsible for drafting the fiscal year 2013 spending plan ... |
States including NC turning to tolls to pay for highways - Shelby Star
States including NC turning to tolls to pay for highways Shelby Star Federal and state fuel tax revenues peaked in 2007 at $72.4 billion, then dropped to $68.6 billion in 2010, the most recent year for which data are available. Meanwhile, state toll collections rose from $4.9 billion in 2000 to $8.9 billion in 2010, ... |
Gregoire: Partisan wrangling threatens state's roads, finances - Bellingham Herald
Gregoire: Partisan wrangling threatens state's roads, finances Bellingham Herald In September, Gregoire said, the state's economic forecast decreased by $1.4 billion as consumers responded by spending less. And she said that hit hard in a state that has no income tax and relies on sales tax receipts to pay for its government ... |
38 Studios may miss out on tax credits - Providence Eyewitness News
 TSN | 38 Studios may miss out on tax credits Providence Eyewitness News 38 Studios is a limited liability company organized under Delaware law, according to records at the secretary of state's office reviewed by WPRI.com. The company did register its business in Rhode Island in September 2010, but did so as an out-of-state ... RI vetting whether Schilling can get tax credits RI gov tries to salvage ex-Red Sox pitcher's firm Ex-Boston Red Sox pitcher Curt Schilling's video game company lays off entire ... |
States looking to new tolls to pay for highways - CBS News
 CBS News | States looking to new tolls to pay for highways CBS News Federal and state fuel tax revenues peaked in 2007 at $72.4 billion, then dropped to $68.6 billion in 2010, the most recent year for which data are available. Meanwhile, state toll collections rose from $4.9 billion in 2000 to $8.9 billion in 2010, ... |