Welcome to state taxes Guide
State Taxes Free Online Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
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.
State Taxes Free Online News
Louisiana offers tax free holiday for Hurricane prep - Shreveport Times
Louisiana offers tax free holiday for Hurricane prep Shreveport Times The tax free holiday will allow residents of Louisiana to purchase up to $1500 of disaster preparedness goods free from the state sales tax, according to the Louisiana Department of Health and Hospitals. They gave a detailed list of products exempt ... |
The 529 plan can help with college funding and estate-planning considerations - Gettysburg Times
The 529 plan can help with college funding and estate-planning considerations Gettysburg Times When you contribute to a 529 plan, your earnings accumulate tax free, provided they are used for qualified higher education expenses. (Keep in mind, though, that 529 plan distributions not used for qualified expenses may be subject to federal and state ... |
Free State Tax Calculation for 3dcart Stores Through TaxCloud - San Francisco Chronicle (press release)
Free State Tax Calculation for 3dcart Stores Through TaxCloud San Francisco Chronicle (press release) Online Stores Can Prepare for Hassle-Free Experience with Pending New Legislation Tamarac, FL and Seattle, WA (PRWEB) May 14, 2012 To help merchants make sense of sales tax, 3dcart has partnered with TaxCloud, a free sales tax service for online ... |
ScholarShare Announces College Savings Account Giveaway - MarketWatch (press release)
ScholarShare Announces College Savings Account Giveaway MarketWatch (press release) Any earnings on investments can grow tax-deferred. Withdrawals, when used for tuition and other qualified higher education expenses, are federal and state income tax-free. Consider the investment objectives, risks, charges and expenses before investing ... |
Activists Pressure Amazon Into a Change of Heart - E-Commerce Times
 Los Angeles Times | Activists Pressure Amazon Into a Change of Heart E-Commerce Times According to its website, ALEC says it works to advance the fundamental principles of free-market enterprise, limited government, and federalism at the state level through a nonpartisan, public-private partnership of state legislators, members of the ... Amazon: Can The Good Times Last? |