Results for - To Tax or not to Tax
2,857 voters participated in this survey
The United States has a multi-tiered income tax system under which taxes are imposed by federal, state, and sometimes local governments. Federal and state income taxes are similar in that they apply a percentage rate to taxable incomes, but they can differ considerably as to those rates and how they are applied.
1. Alaska is the largest state in the United States in area, and one of only two states without sales tax or income taxes. Although there is no sales tax at the state level, local governments have the right to impose taxes at their own discretion, and there are some areas where a sales tax is charged on certain items. However, the Federal income tax still applies to income earned by Alaska residents. Have you had the opportunity to visit Alaska and enjoy the benefit of no sales tax on some items?
2. New Hampshire is the other state with no sales or income taxes. The majority of the tax receipts come from property taxes (the third highest in the country) and heavy use of excise taxes. Local governments cannot choose to charge sales taxes. Instead, the state as a whole taxes beer, electricity, tobacco, and gasoline. Also, a nine percent sales tax is always charged on restaurant bills, car rentals, and hotel lodging. In addition the state charges a 10 percent timber tax for trees chopped down (Christmas trees, fruit trees, nursery stock, ornamental trees, and sugar orchards are exempt). All of these taxes combined make up a large portion of New Hampshire's revenue. Does your state, district, province, territory, etc. have any noteworthy ways of generating revenue?
3. Delaware, the second smallest state in the U.S. is just 96 miles long. Delaware makes up for a lack of sales tax with high income taxes. This little state has the 17th highest income tax in the nation. It also relies heavily on excise taxes, which are taxes imposed on specific types of goods, services, or activities. For example, there is no general sales tax, but there are taxes on cigarettes, alcohol, and gas. Are there any "unique" tax laws where you live?
4. Montana is nicknamed the Treasure State (not from the money it gets from sales taxes) but because of its many mineral reserves. A significant portion of the tax receipts come from taxes corporations pay when they mine in this state. The other biggest tax is income taxes. Individual jurisdictions cannot choose to collect sales taxes at their own discretion. Instead, there is a resort and local option tax - a sales tax in areas with lots of tourists but a small population. This tax affects lodging, restaurants, and recreational facilities, enabling small towns to support large amounts of tourists without raising taxes for permanent residents. Only cities with populations under 5,500 are allowed to use this tax. Montana's population density is just seven people per square mile, so many areas meet this criteria. Have you traveled to the Treasure state?