Sales taxes in the United States
Encyclopedia
There is no federal sales or use tax in the United States. 45 states and the District of Columbia impose sales and use taxes on the retail sale, lease and rental of many goods, as well as some services. Many cities, counties, transit authorities and special purpose districts impose additional local sales or use taxes. Sales and use tax is calculated by multiplying the purchase price by the applicable tax rate. Tax rates vary widely 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 once, at the retail level, on any particular item. However, 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 jurisdictions provide numerous categories of goods and services that are exempt from sales tax, or taxed at reduced rates. The purchase of goods for further manufacture or for resale is uniformly exempt from sales tax. Most jurisdictions exempt food sold in grocery stores, prescription medications, and many agricultural supplies.
Sales taxes, including those imposed by local governments, are generally administered at the state level. States imposing sales tax require retail sellers to collect tax from customers, file returns, and remit the tax to the state. 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. States are prohibited from requiring out of state sellers to collect tax unless the seller has established a physical presence in the state sufficient to establish a nexus.
Sales to businesses and to consumers are generally taxed the same, except as noted in the preceding paragraph. Businesses receive no offset to sales tax collection and payment obligations for their own purchases. This differs significantly from value added taxes.
The place and manner of sale may affect whether a sale of particular goods is taxable. Many states tax food for consumption on premises but not food sold for off premises consumption. The use to which goods are put may also affect whether the sale is subject to tax. Goods used as ingredients in manufacturing may avoid tax, where the same goods used as supplies may not.
Some states exempt a portion of sales or purchase price from tax for some classes of goods.
Many states provide exemptions for specific types of goods, and not for others. Certain types of foods may be exempt, and certain types taxable, even when sold in a grocery store for home consumption. Lists of what goods are taxable and what are not may be voluminous.
Telecommunications services are subject to a tax similar to a sales tax in most states. Only a few states tax internet access or other information services.
Construction services are rarely taxed by states. Materials used in construction of real property 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.
Goods purchased to be used as ingredients in manufacturing tangible personal property are generally not taxable. Purchases of food by a restaurant generally are not taxable in those states that tax sales by restaurants, even though the ingredients are transformed. Steel purchased to be part of machines is generally not taxable. However, supplies consumed by the same businesses may be taxable. Criteria vary widely by state.
Purchase of goods to be provided as part of performance of services may be taxed. Airlines and hotels may be taxed on purchases of food to be provided as part of their services, such as in-flight meals or free breakfast. Where there is a separate charge for such goods, they may be considered purchased for resale.
Many states require individuals and businesses who regularly make sales to register with the state. All states imposing sales tax require that taxes collected be paid to the state at least quarterly. Most states have thresholds at which more frequent payment is required. Some states provide a discount to vendors upon payment of collected tax.
Sales taxes collected in some states are considered to be money owned by the state, and consider a vendor failing to remit the tax as in breach 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 many local jurisdictions require separate reporting. Some jurisdictions permit or require electronic filing of returns.
Purchasers of goods who have not paid sales tax in their own jurisdiction must file use tax returns to report taxable purchases. Many states permit such filing for individuals as part of individual income tax returns.
's Uniform Sales and Use Tax Certificate.
and the Due Process Clause. Only sellers with some minimal connection (nexus) with the state can be required to collect sales tax.
Several state constitutions impose limitations on sales tax. These limitations restrict or prohibit the taxing of certain items, such as food,
(1) Some states tax food, but allow an (income) tax credit to compensate poor households. They are: HI, ID, KS, OK, SD, and WY.
(2) Includes statewide local tax of 1.0% in California and 1.0% in Virginia.
(3) Tax rate may be adjusted annually according to a formula based on balances in the unappropriated general fund and the school foundation fund.
(4) Food sales are subject to local sales taxes.
has a state general sales tax of 4.00%, plus any additional local taxes which can amount to a combined total sales tax of up to 12 percent in some cities http://www.revenue.alabama.gov/salestax/sales/index.cfm. Alabama is one of several states that do not exempt food from state taxes. The capital of Montgomery
has a sales tax of 10%. The state's largest city, Birmingham
, has a sales tax of 10 percent.
; 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 boroughs and municipalities of them do so. Municipal sales taxes are collected in addition to borough sales taxes, if any. Regulations and exemptions vary widely across the state. The two largest cities, Anchorage
and Fairbanks
, do not charge a local sales tax. The state capital, Juneau
, has a 5 percent sales tax rate.
has a transaction privilege tax
(TPT) that differs from a "true" sales tax in that it is a gross receipts tax
, a tax levied on the gross receipts of the vendor and not a liability of the consumer. (As explained in Arizona Administrative Code rule R15-5-2202, vendors are permitted to pass the amount of the tax on to the consumer, but remain the liable parties for the tax to the state.) TPT is imposed under 16 tax classifications (as of November 1, 2006), with the tax rate most commonly encountered by Arizona consumers (e.g., for retail transactions) set at 6.6 percent.
Cities and counties can add as much as 6 percent to the total rate. Food for home consumption and prescription drugs (including prescription drug
s and certain prescribed homeopathic medication
) are two of many items of tangible personal property that are statutorily exempt from the state retail TPT; cities can 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. The capital and largest city of Phoenix
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.
has a state sales tax of 7.00%, plus any additional local taxes; for instance, Little Rock
charges a 0.5% city sales tax.
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 on groceries remained unchanged.
has a sales tax of 7.25%, which can total up to 9.75% with local sales tax included. Partly this rate compensates for the much reduced property tax revenue brought on by Proposition 13. Sales and use taxes in the state of California are collected by the publicly elected Board of Equalization, whereas income and franchise taxes are collected by the Franchise Tax Board
.
In general, sales tax is required on all purchases of tangible personal property to its ultimate consumer. Services are not subject to sales tax (but may be subject to other taxes). Liability for sales tax attaches to the seller, not the buyer; but the seller is allowed by law to collect the tax from the buyer (and if the seller does so, the buyer is obligated to pay it). Unprepared food, bakery items, hot beverages, livestock, crops and seeds, fertilizer used to grow food, certain devices related to alternative energy, and one-time sales are among the items exempt from sales tax.
Critics of the current sales tax regime charge that it gives local governments an incentive to promote commercial development (through zoning and other regulations) over residential development, including the use of eminent domain condemnation proceedings to transfer real estate to higher sales tax generating businesses.
's state sales tax is 2.9% with some cities and counties levying additional taxes. Denver's tangibles tax is 3.62%, with food eaten away from the home being taxed at 4%, most unprepared food (groceries) are exempt. There is also a football stadium tax, mass transit tax, and scientific and cultural facilities tax. The total sales tax varies by city and county. Total sales tax on an item purchased in Falcon, Colorado
, would be 4.9% (2.9% state, 1% county, and 1% RTA). The sales tax rate in Larimer County is roughly 7.5%. Most transactions in Denver and the surrounding area are taxed at a total of about 8%. The exact sales tax rate for Denver is 7.72%.
has a 6.35% sales tax, with no additional local taxes. Most non-prepared food products are exempt, as are most prescription and nonprescription medications, all internet services, all magazine and newspaper subscriptions, and textbooks (for college students only). Also Compact Fluorescent Light Bulbs are tax exempt per Connecticut State Law
Shipping and delivery charges (including charges for U.S. postage) made by a retailer to a customer are subject to sales and use taxes when provided in connection with the sales of taxable tangible personal property or services. The tax applies even if the charges are separately stated and applies regardless of whether the shipping or delivery is provided by the seller or by a third party. No tax is due on shipping and delivery charges in connection with any sale that is not subject to sales or use tax. Shipping or delivery charges related to sales for resale or sales of exempt items are not taxable. Likewise, charges for mailing or delivery services are not subject to tax if they are made in connection with the sale of nontaxable services.
does not assess a sales tax on consumers. The state does, however, impose a tax on the gross receipts of most businesses. Business and occupational license tax rates range from 0.096 percent to 1.92 percent, depending upon the category of business activity. However, it does charge a 3.75% 'document' fee on vehicle registrations.
, has a sales tax rate of 6.00%. The tax is imposed on sale of tangible personal property and selected services. A 10% tax is imposed on liquor sold for off premises consumption, 10% on restaurant meals (including carry-out) and rental cars, 12% on parking, and 14% on hotel accommodations. Groceries, prescription and non-prescription drugs, and residential utilities services are exempt from the District's sales tax.
The District once had two sales tax holidays each year, one during "back-to-school" and one preceding the holiday shopping season. The 'back to school' tax holiday was repealed on May 12, 2009.
has a general sales tax rate of 6%. The tax is imposed on the sale or rental of goods, the sale of admissions, the lease, license, or rental of real property, the lease or rental of transient living accommodations, and the sale of a limited number of services such as commercial pest control, commercial cleaning, and certain protection services. There are a variety of exemptions from the tax, including groceries and prescriptions.
A "discretionary sales surtax" may be imposed by the counties of up to 1.5%, charged at the rate of the destination county (if shipped). This is 1% in most counties, 0.5% in many, 1.5% in a few such as Leon
, and 0.25% in one county (Alachua
). A few have none at all. Most have an expiration date
, but a few do not. Only the first $5,000 of a large purchase is subject to the surtax rate. Most counties levy the surtax for education or transportation improvements.
There are annual sales tax holidays, such as a back-to-school holiday on clothing, books, and school supplies under a certain price, as well as one in June 2007 to promote hurricane preparedness
. The 2008 Legislators did not enact any sales tax holidays.
Florida also permits counties to raise a "tourist development tax" of up to an additional 6% for stays of 6 months or less on any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, roominghouse, mobile home park, recreational vehicle park, condominium, or timeshare resort.
has a 4% state sales tax rate. Groceries are exempt from the state sales tax, but still subject to tax by the local sales tax rate. Counties may impose local sales tax of 1%, 2%, or 3%, consisting of up to three 1% local-option sales taxes (out of a set of five) as permitted by Georgia law. These include a SPLOST, a homestead exemption
(HOST), and one for public schools which can be put forth for a referendum
by the school board instead of the county commission
(in cooperation with its city council
s). Also, the city of Atlanta imposes an additional 1% municipal-option sales tax (MOST), as allowed by special legislation
of the Georgia General Assembly
, solely for the purpose of fixing its water and sewerage
systems.
As of July 2008, total sales tax rates in Georgia are 3% for groceries and 7% for other items in the vast majority of its 159 counties. A few counties charge only 2% local tax (6% total on non-grocery items), and four partially exempt groceries from the local tax by charging 2% on food, and 3% (7% total) on other items. Fulton
and DeKalb
counties charge 1% for MARTA
, and adjacent metro Atlanta
counties may do so by referendum if they so choose. For the portions of Fulton and DeKalb within the city of Atlanta, the total is at 8% (4% on groceries) due to the MOST.
Similar to Florida and certain other states, Georgia used to have two sales tax holidays per year. One was for back-to-school sales the first weekend in August, but sometimes starting at the end of July. A second usually occurred in October, for energy-efficient
home appliance
s with the Energy Star
certification
. There were no sales tax holidays in 2010.
Georgia has many exemptions available to specific businesses and industries. To identify potential exemptions, businesses and consumers must research the laws and rules for sales and use tax and review current exemption forms.
does not have a sales tax per se, but it does have a gross receipts tax
(called the General Excise Tax) which applies to nearly every conceivable type of transaction
(including services), and is technically charged to the business
rather than the consumer
. Hawaii law allows business to pass on the tax to the consumer in similar fashion to a sales tax.
Unlike other states, rent, medical services and perishable foods are subject to the excise tax. Also, unlike other states, businesses may or may not show the tax separately on the receipt
, as it is technically part of the selling price. 4.0% is charged at retail
with an additional 0.5% surcharge in the City and County of Honolulu (for a total of 4.5% on Oahu sales), and 0.5% is charged on wholesale
. However, the state also allows "tax on tax" to be charged, which effectively means a customer can be billed as much as 4.166% (4.712% on Oahu
). The exact dollar or percentage amount to be added must be quoted to customers within or along with the price. The 0.5% surcharge on Oahu was implemented to fund the new rail transport system. As with sales tax in other states, nonprofit organizations may apply for an exemption from the tax.
has a 6.0% state sales tax. Some localities levy an additional local sales tax.
' sales and use tax scheme includes four major divisions: Retailers' Occupation Tax, Use Tax, Service Occupation Tax and the Service Use Tax. Each of these taxes is administered by the Illinois Department of Revenue. The Retailers' Occupation Tax is imposed upon persons engaged in the business of selling tangible personal property to purchasers for use or consumption. It is measured by the gross receipts of the retailer. The base rate of 6.25% is broken down as follows: 5% State, 1% City, 0.25% County. Local governments may impose additional tax resulting in a combined rate that ranges from the State minimum of 6.25% to a current high of 11.50% in certain business districts in Cook County
. Springfield charges 8.00% total (including state tax). A complementary Use Tax is imposed upon the privilege of using or consuming property purchased anywhere at retail from a retailer. Illinois registered retailers are authorized to collect the Use Tax from their customers and use it to offset their obligations under the Retailers' Occupation Tax Act. Since the Use Tax rate is equivalent to the corresponding Retailers' Occupation Tax rate, the amount collected by the retailer matches the amount the retailer must submit to the Illinois Department of Revenue. The combination of these two taxes is what is commonly referred to as "sales tax." If the purchaser does not pay the Use Tax directly to a retailer (for instance, on an item purchased from an Internet seller), they must remit it directly to the Illinois Department of Revenue.
The Service Occupation Tax is imposed upon the privilege of engaging in service businesses and is measured by the selling price of tangible personal property transferred as an incident to providing a service. The Service Use Tax is imposed upon the privilege of using or consuming tangible personal property transferred as an incident to the provision of a service. An example would be a printer of business cards. The printer owes Service Occupation Tax on the value of the paper and ink transferred to the customer in the form of printed business cards. 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 State of Illinois, the government of the United States of America, or the government of any foreign country.
The city of Chicago
once had the highest total sales tax of all major U.S. cities (10.25%), including a 3% Chicago Soft Drink Tax and a 1% food and beverage tax on prepared food and beverage purchases in the downtown area.
Illinois requires residents who make purchases online or when traveling out-of-state to report those purchases on their state income tax form and pay use tax.
has a 7% state sales tax. The tax rate was raised from 6% on April 1, 2008, to offset the loss of revenue from the statewide property tax reform, which is expected to significantly lower property taxes. Untaxed retail items include medications, water, ice and unprepared, raw staple foods or fruit juices. Many localities, inclusive of either counties or cities, in the state of Indiana also have a sales tax on restaurant food and beverages consumed in the restaurant or purchased to go. Revenues are usually used for economic development and tourism projects. This additional tax rate may be 1% or 2% or other amounts depending on the county in which the business is located. For example, in Marion County
, the sales tax for restaurants is 9%. There is an additional 2% tax on restaurant sales in Marion County to pay for Lucas Oil Stadium
and expansion of the Indiana Convention Center
.
has a 5% state sales tax, including 1% dedicated to local school districts. A local option sales tax of 1% is imposed in most cities and in the unincorporated portion of most counties, bringing the total up to a maximum of 7%. There is no tax on most unprepared food. The Iowa Department of Revenue provides information about local option sales taxes, including sales tax rate lookup.
has a 6.3% state sales tax as of July 1, 2010. More than 700 jurisdictions within the state (cities, counties, and special districts) may impose additional taxes. For example, in the capital city of Topeka, retailers must collect 6.3% for the state, 1.15% for Shawnee County, and 1% for the city, for a total rate of 8.45%. As of July 2010, the highest rate was 8.85%, in Douglas County
.
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.
has a 4% state sales tax: 3.97% to sales tax and .03% to Louisiana tourism district. The state sales tax is not charged on unprepared food. There are also taxes on the parish (county) level and some on the city levels, Baton Rouge
has a 5% sales tax. Parishes may add local taxes up to 5%, while local jurisdictions within parishes may add more. Louisiana also bids out sales tax audits to private companies, with many being paid on a percentage collected basis.
Orleans Parish collects the maximum 5% tax rate for a total of 9% on general purpose items. This 5% is also charged on groceries.
has a 5% general, service provider and use tax. The tax on lodging and prepared food is 7% and short term auto rental is 10%. These are all generally known as "sales tax".
has a 6% state sales and use tax (raised from 5% in 2007) (7% restaurant sales tax in Worcester County
) as of January 3, 2008, with exceptions for medicine, residential energy, and most non-prepared foods (excluding candy, soda, and alcoholic beverages). Currently, many services (e.g., auto repair labor, haircuts, accounting) are not taxed. With this tax increase, Maryland added sales tax on Internet purchases and other mail items such as magazine subscriptions. Clothing is also taxable. Maryland has a "back-to-school" tax holiday on a limited number of consumer items. On July 1, 2011 the sales tax on alcohol was raised to 9% from 6%.
has a 6.25% state sales tax (raised from 5% in 2009). Meal tax on prepared food is 6.25% statewide, however
in some towns, voters chose to add in 0.75% (raising the tax to 7%), with that incremental revenue coming back to the town. Sales tax on liquor was repealed in a 2010 referendum vote.
has a 6% sales tax (raised from 4% in 1994). Michigan has a use tax of 6%, which is a tax that is applied to items that were brought into Michigan but not bought there, and of which taxes were not paid to the state in which the item was bought in. The tax is supposed to be paid when filing a resident's annual income tax.
A service tax was approved in September 2007, effective December 1, 2007, allowing certain services to be taxed. The services tax was repealed the same day it went into effect. There is no local sales tax in Michigan. There is now a Michigan sales tax on the total amount of online orders, meaning that shipping charges are now taxed. Food, periodicals, and prescription drugs are not taxed. Restaurants, however, do have a tax, but the tax is for the service and not on the food. Michigan also has recently introduced a business tax called the Michigan Business Tax (MBT) which replaces the Single Business Tax (SBT).
While not necessarily a tax, Michigan has the highest bottle deposit
for carbonated beverages ($0.10) in the United States; however, it is refunded as an incentive for recycling. The bottle deposit was originally instituted in 1978 as a litter control initiative.
currently has a 6.875% statewide sales tax. The statewide portion consists of two parts: a 6.5% sales tax with receipts going to the state General Fund, and a 3/8 of 1 percent tax going to arts and environmental projects. The 3/8 of 1 percent tax was passed by a statewide referendum on Nov. 4, 2008, and went into effect on July 1, 2009. Generally, food (not including prepared food, some beverages such as soda pop, and other items such as candy) and clothing are exempt from the sales tax. Prescription drugs are also exempt.
Local units of government may, with legislative approval, impose additional general sales taxes. As of July 1, 2008, an additional 0.25% Transit Improvement tax was phased in across five counties in the Minneapolis-St. Paul metropolitan area for transit development. These counties are Hennepin
, Ramsey
, Anoka
, Dakota
, and Washington
. A 0.15% sales tax is imposed in Hennepin County to finance the Minnesota Twins
' new Target Field
. Several cities impose their own citywide sales tax: Saint Paul
(0.5%), Minneapolis (0.5%), Rochester
(0.5%), and Duluth
(1%).
These additional taxes increase the total general sales tax rates to 7.875% in Duluth, 7.775% in Minneapolis, 7.625% in Saint Paul, and 7.375% in Rochester.
In addition to general sales taxes, local units of government can, again with legislative approval, impose sales taxes on certain items. Current local option taxes include a "lodging" tax in Duluth (3%), Minneapolis (3%), and Rochester (4%), as well as served "food and beverage" tax in Duluth (2.25%).
Alcohol is taxed at an additional 2.5% gross receipts tax rate above the statewide 6.875% sales tax rate, for a total rate of 9.375%, not including any applicable local taxes. Which adds up to 10.375% in Duluth, 10.275% in Minneapolis, 10.125% in Saint Paul, and 9.875% in Rochester.
has a 7% state sales tax. Cities and towns may implement an additional tourism tax on restaurant and hotel sales. The city of Tupelo
has a 0.25% tax in addition to other taxes. Restaurant and fast food tax is 9%. The city of Hattiesburg
also has a 9% sales tax on Restaurant and fast food tax.
imposes a sales tax upon all sales of tangible personal property, as well as some "taxable services"; it also charges a use tax for the "privilege of storing, using or consuming within this state any article of tangible personal property." The state rate, including conservation and other taxes, is 4.225%, and counties, municipalities, and other political subdivisions charge their own taxes. Those additional local taxes combined with "community improvement district," "transportation development district," and "museum district" taxes can result in merchandise sales taxes in excess of 10%. The state sales tax rate on certain foods is 1.225%.
Missouri provides several exemptions from sales tax, such as purchases by charitable organizations or some common carriers (as opposed to "contract carriers"). Missouri also excludes some purchases from taxation on the grounds that such sales are not sales at retail; these include sales to political subdivisions. The Supreme Court of Missouri
in August, 2009, ruled that when a sale is excluded from taxation - as opposed to exempt from taxation - the seller must self-accrue sales tax on its purchase of the goods and remit the tax on such purchases it made. This decision was reversed by two similar - but not identical - statutes added during the 2010 general assembly's regular session.
Although the purchaser is obligated to pay the tax, the seller is obligated to remit the tax, and when the seller fails to remit, the obligation to pay falls on him. As compensation for collecting and remitting taxes, and as an incentive to timely remit taxes, sellers may keep two percent of all taxes collected each period. There are two exceptions to the general rule that the seller must pay the sales tax when he or she fails to collect it. First, no sales tax is due upon the purchase of a motor vehicle that must be titled. Instead, the purchaser pays the tax directly to the Department of Revenue within one month of purchase. As long as the vehicle is taken out of state within that first month of purchased and titled elsewhere, no tax is due in Missouri. Second, if the purchaser presents an exemption certificate to the buyer at the time of sale, then the purchaser may be assessed taxes on the purchases if the certificate was issued in bad faith.
does not have a state sales tax but some municipalities which are big tourist destinations, such as Whitefish
, Red Lodge
, Big Sky
, and West Yellowstone, have a small sales tax (up to 3%). Hotels, campgrounds and similar lodging charge a "lodging and usage tax", usually at the rate of 7%. Rental car companies charge a 4% tax on the base rental rate.
has a 5.5% state sales tax from which groceries are exempt. Municipalities have the option of imposing an additional sales tax of up to 1.5%, resulting in a maximum rate of 7.0%. Specific tax rates per counties are available on the web. Omaha also has a 2.5% tax on prepared food and drink.
's state sales tax rate is 6.85%. Counties may impose additional rates via voter approval or through approval of the Legislature; therefore, the applicable sales tax will vary by county from 6.85% to 8.1% in Clark County
. Clark County, which includes Las Vegas
, imposes four separate county option taxes in addition to the statewide rate - 0.25% for flood control, 0.50% for mass transit, 0.25% to fund the Southern Nevada Water Authority, and 0.25% for the addition of police officers in that county. In Washoe County
(which includes Reno
), the sales tax rate is 7.725%, due to county option rates for flood control, the ReTRAC train trench project, mass transit, and an additional county rate approved under the Local Government Tax Act of 1991.
For travelers to Las Vegas, note that the lodging tax rate in unincorporated Clark County, which includes the Las Vegas Strip
, is 12%. Within the boundaries of the cities of Las Vegas and Henderson
, the lodging tax rate is 13%.
New Hampshire also imposes excise taxes on gasoline tax at $0.196 per gallon, cigarettes at $1.78 per pack, beer at $0.30 per gallon, and electricity at $0.55 per megawatt-hour.
's sales and use tax rate is 7%. However, there are exceptions to this statewide rate. In Urban Enterprise Zone
s, UEZ-impacted business districts, and in Salem County
, sales tax may be charged at 3.5% (50% of the regular rate) on certain items. In addition, local sales taxes are imposed on sales of certain items sold in Atlantic City
and Cape May County
. For additional information, see Tax Topic Bulletin S&U-4, New Jersey Sales Tax Guide, available at: http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf
A full list of Urban Enterprise Zones is available on the State of New Jersey web site.
New Jersey does not charge sales tax on unprepared food (except certain sweets and pet food), household paper products, medicine, and clothing. New Jersey does not charge sales tax on goods purchased for resale or on capital improvements but does charge sales tax on certain services. See the NJ Division of Taxation website at: http://www.state.nj.us/treasury/taxation/su.shtml
New Jersey does not charge sales tax on gasoline, but gasoline is subject to a $0.145/gallon excise tax.
Sales of clothing and accessories that are made of fur from the hide or pelt of an animal that is valued at $500 or more are subject to a 6% Fur Clothing Gross Receipts Tax.
of 5% on most retail sales or leasing of property or performance of services in New Mexico. The tax is imposed on the seller but it is common for the seller to pass the tax on to the purchaser. The state rate is 5.125%. Municipalities may assess an additional gross receipts tax, resulting in rates between 5.375% and 8.8625%. Numerous specific exemptions and deductions apply.
has a 4% state sales tax. All counties and some cities add local taxes ranging from 3% to 4.75%. The combined sales tax in Utica
, for example, is 8.75%. In New York City
, total sales tax is 8.875%, which includes 0.375% charged for the service of the Metropolitan Transportation Authority
.
As of September 1, 2007, New York State eliminated sales tax on all clothing and shoes if the single item is priced under $110. Most counties and cities have not eliminated their local sales taxes on clothing and shoes. There are however, 5 cities (most notably New York City) and 11 counties (not counting the counties which make up New York City: New York
, Queens
, Kings
, Richmond
, and Bronx
counties) that have done so. The counties where the year-round exemption will apply include Broome
, Chautauqua
, Chenango
, Columbia
, Delaware
, Dutchess
, Greene
, Hamilton
, Madison
(outside the city of Oneida
), Rensselaer
, Tioga
, and Wayne
. The cities where the year-round exemption will apply include Binghamton
, Gloversville
, New York City
, Norwich
, Olean
, and Sherrill
. New York also exempts college textbooks from sales tax.
As of June 1, 2008, when products are purchased online and shipped into New York State, some retailers must charge the tax amount appropriate to the locality where the goods are shipped, and in addition, must also charge the appropriate tax on the cost of shipping and handling. The measure states that any online retailer that generates more than $10,000 in sales via in-state sales affiliates must collect New York sales tax. The cumulative gross receipts from sales to New York customers as a result of referrals by all of the seller’s resident representatives total more than $10,000 during the preceding four quarterly sales tax periods.
Effective October 1, 2010 and lasting through March 31, 2011, statewide sales and use tax exemption for clothing and footwear sold for less than $110 will be eliminated. For New York City, this means article of clothing costing less than $110 will now be charged 4.375% tax. A state sales tax exemption for clothing and footwear under $55 will be reinstated from April 1, 2011 through March 31, 2012. The original ($110) exemption will be reinstated after March 31, 2012.
has a state-levied sales tax of 4.75%, effective July 1, 2011, with most counties adding an additional 2% tax, for a total tax of 6.75% in 92 of the 100 counties. Mecklenburg County
levies an additional 0.5% tax, which is directed towards funding the light rail system
, for a total of 7.25% and the sales tax in a few other counties is 7%.
There is a 30.2¢ tax per gallon on gas
, a 45¢ tax per pack of cigarettes, a 79¢ tax per gallon on wine, and a 53¢ tax per gallon on beer. Most non-prepared food purchases are taxed at a reduced rate of 2%. Candy, soft drinks, and prepared foods are taxed at the full combined 7.75%-8.25% rate, with some counties levying an additional 1% tax on prepared foods. For the benefit of back-to-school shoppers, there is a sales tax holiday on the first Friday in August through the following Sunday which includes school supplies, school instructional materials, clothing, footwear, sports and recreation equipment, and computers and computer accessories.
has a 5% state sales tax for general sales, but varies depending on the category (5%, 7%, 3% and 2%). These additional taxes increase the total general sales tax rates to 7.5% in Valley City
and Pembina
; 7.25% in Grafton
; 7.0% in Fargo
and Minot
; 6.75% in Grand Forks
; 6.5 in Dickinson
; and 6.0% in Bismarck
, West Fargo
and Mandan
.
has a 5.5% state sales tax. Counties may levy a permissive sales tax of from 0.25% up to 1.5% and transit authorities, mass transit districts usually centered on one primary county, may levy a sales tax of from 0.25% up to 1.5%. Cuyahoga County
has the highest sales tax of 7.75%. Tax increments may not be less than 0.25%, and the total tax rate, including the state rate, may not exceed 8.5%. County permissive taxes may be levied by emergency resolution of the county boards of commissioners. Transit authority taxes must and county permissive taxes may be levied by a vote of the electors of the district or county. Shipping and handling charges are also taxable. Ohio law requires virtually every type of business to obtain a Ohio Sales Tax Certificate Number. If you sell goods on eBay or the internet and ship them to someone in the state you reside, then you must collect sales tax from the buyer and pay the collected tax to your state on a monthly or quarterly basis. If you sell less than $4 million in annual sales, you do not have to collect or pay sales tax on out-of-state sales.
Ohio Sales Tax Resale Certificate Example: If you live in Ohio and you sell or ship something to someone else in Ohio, then you must collect and pay sales tax to the State of Ohio. But if you sell the same item to someone outside the State of Ohio, you need not charge sales tax, but must report the exempt tax sale to 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 the full 7%.
has a 4.5% sales tax rate. Cities have an additional sales tax which varies, but is generally 3-4% resulting in a total sales tax rate of 7.5% to 8.5%.
has no statewide sales tax, although local municipalities may impose sales taxes if they choose to do so, such as Ashland, which imposes a 5% prepared food tax.
has a 6% sales tax rate. Allegheny County
has local sales tax of 1% on top of the PA sales tax rate that totals 7%. Philadelphia County
has a local sales tax of 2% on top of the PA sales tax rate that totals 8%, which became effective October 8, 2009.
Food, most clothing, and footwear are among the items most frequently exempted. However, taxed food items include soft drink
s and powdered mixes, sports drink
s, hot beverages, hot prepared foods, sandwich
es, and salad bar
meals, unless these items are purchased with food stamps. Additionally, catering and delivery fees are taxed if the food itself is taxed.
Additional exemptions include internet service, newspaper
s, textbook
s, disposable diaper
s, feminine hygiene
products, toilet paper
, wet wipe
s, prescription drug
s, many over-the-counter drug
s and supplies, oral hygiene
items (including toothbrush
es and toothpaste
), contact lens
es and eyeglasses
, health club
and tanning booth
fees, burial items (like coffin
s, urn
s, and headstone
s), personal protective equipment
for production personnel, work uniform
s, veterinary
services, pet medications, fuel
for residential use (including coal
, firewood
, fuel oil
, natural gas
, wood pellets
, steam
, and electricity
), many farm
ing supplies and equipment, ice
, and tea (including powdered, hot, cold, and flavored).
The taxability of alcoholic beverages is slightly complicated. In Pennsylvania, alcohol is sold to businesses and consumers through the Pennsylvania Liquor Control Board
(PLCB). The PLCB always charges sales tax directly to the purchasing entity. Therefore, if a consumer purchases alcohol in PLCB stores, the sales tax is assessed at the point of purchase, but if a consumer purchases alcohol at a licensed business (such as a bar or restaurant), the sales tax is not applied because it had already been paid when the business purchased the alcohol from the PLCB. The PLCB charges an additional 18% levy on liquor and wine, but this tax is always included in the price regardless of the purchasing location. Beer is subject to an excise of $0.08 per gallon.
has a 5.5% commonwealth sales tax that applies to both products and services with few exemptions (including items such as unprocessed foods, prescription medicines and business-to-business services). Additionally, most municipalities have a city sales tax of 1.5% for a total of 7%. Some items that are exempt from commonwealth sales tax, specifically unprocessed foods, may still be subject to the city sales tax in the municipalities.
has a state sales tax of 7%. The rate was raised from 5% to 6% as a temporary measure in the 1970s, but has not since been lowered. Rhode Island raised its sales tax from 6% to 7% in the early 1990s to pay for the bailout of the state's failed credit unions. The change was initially proposed as a temporary measure, but was later made permanent. Other taxes may also apply, such as the state's 1% restaurant tax. Many items are exempt from the state sales tax, e.g., food (excluding single serve items), prescription drugs, clothing and footwear, newspapers, coffins, and original artwork.
has a 6% state sales tax but when combined with local, county and hospitality taxes South Carolina has a maximum sales tax of 10.5%.
In Charleston
, the tax rate equals 10.5% with state tax, county tax, local option tax, and the hospitality tax. The City of Myrtle Beach
states that mixed liquor drinks can have taxes added as high as 16.5%.
As of June 1, 2007 counties and some cities may impose an additional 1% to 3% sales tax. As of mid-2005, 35 of 46 counties do so. Restaurants may also charge an extra 1-2% tax on prepared food (fast food or take-out) in some places. The state's sales tax on unprepared food disappeared completely November 1, 2007. There is a cap of $300 on sales tax for most vehicles.
Additionally, signs posted in many places of business inform that South Carolina residents over the age of 85 are entitled to a 1% reduction in sales tax.
For the benefit of back-to-school shoppers, there is a sales tax holiday on the first Friday in August through the following Sunday which includes school supplies, school instructional materials, clothing, footwear, sports and recreation equipment, and computers and computer accessories.
has a 4% state sales tax, plus any additional local taxes. An additional 1.5% sales tax is added during the summer season on sales occurring in tourism-related businesses and dedicated to the state's office of tourism.
City governments are allowed a maximum of 2% sales tax for use by the local government. Tribal governments are allowed to charge a higher local government tax rate, as they have a special agreement with the State of South Dakota.
While city governments are not restricted to a 2% tax, they can impose a gross receipts tax on things like lodging, alcohol, restaurants, and admissions. These gross receipts are passed on by the business as a tax and could be considered a sales tax.
charges 5.5% sales tax on groceries as of January 1, 2008, and 7% on other items. Counties also tax up to 2.75% in increments of 0.25% — most do so around 2.25% = the majority of TN taxpayers pay 9.75%. If a county does not charge the maximum, its cities can charge and keep all or part of the remainder. Several cities are in more than one county, but none charge a city tax, thus paying only the county taxes.
state sales and use tax rate is 6.25%, but local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities, but specifically not including school districts) may also impose sales and use taxes up to 2% for a total of 8.25%. The main items exempt from sales tax include medicines (prescription and over-the-counter), food and food seeds (but prepared food, such as from a restaurant, is subject to sales tax).
Motor vehicle and boat sales are taxed at only the 6.25% state rate; there is no local sales and use tax on these items. In addition, a motor vehicle or boat purchased outside the state is assessed a use tax at the same rate as one purchased inside the state. The sales tax is calculated on the greater of either the actual purchase price or the "standard presumptive value" of the vehicle, as determined by the state, except for certain purchases (mainly purchases from licensed dealers or from auctions).
Lodging rates are subject to a 6% rate at the state level, with local entities being allowed to charge additional amounts. 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 merchant for collecting the tax from consumers for the state.
Texas provides one sales tax holiday per year (generally in August prior to the start of the school year, running from Friday to Sunday of the designated weekend). Clothing less than $100 (except for certain items, such as golf shoes) and school supplies are exempt from all sales tax (state and local) on this one weekend only. There has also been talks of a tax free weekend in December to help with the Holiday shopping season.
has a 4.7% state sales tax. Additionally, local taxing authorities can impose their own sales tax. Currently the majority of Utah's aggregate sales taxes are in the range of 5.95% - 8.35%. Utah has a 16.350% sales tax on rental cars in Salt Lake City.
4.7 is usually for food sales.
has a 6% sales tax. The following jurisdictions have an additional 1% Local Option Sales Tax: Burlington
, Dover
, Killington
, Manchester, Middlebury, Rutland Town
, South Burlington
, Stratton
, Williston
, and Winhall
. The meal tax is 9% plus a 1% Local Option. Alcoholic beverages are taxed at 10% plus a 1% Local Option.
has a sales tax rate of 5.00% (4% state tax and 1% local tax). Consumers are taxed on every 'eligible food item.' For example, fresh local produce
sold at farmers markets and grocery stores, or basic, unprepared cold grocery foods, are taxed 2.5% (1.5% state tax and 1% local tax). Cities and counties may also charge an additional "Food and Beverage Tax" on restaurant meals, up to an additional 4% in counties and 6.5% in cities. Virginia also has a tax on alcohol of 11.5%.
Virginia's use tax also applies at the same rate for out of state purchases (food 2.5%, non-food 5%) exceeding $100 per year "from mail order catalogs". Various exemptions include prescription and non-prescription medicine, gasoline, and postage stamps, or the labor portion of vehicle repair. "Cost price" does not include separately stated "shipping" charges but it does include a separate "handling" charge or "shipping and handling" charges if listed as a combined item on the sales invoice. However, unlike Maryland and West Virginia consumer use tax forms, the Virginia CU-7 Consumer Use Tax Form does not recognize that it is possible to be under-taxed in another state and so only addresses untaxed items. Unlike Maryland's quarterly filing, Virginia's CU-7 is due annually between January 1 and May 1 or can be filed optionally instead with Schedule A with Form 760, or Schedule NPY with Form 760PY. As with all states, Virginia has penalties and interest for non-filing, but Virginia's use tax is no more practically enforceable than that of any other state.
As of December 2, 2010, sales taxes cannot be applied to unprepared food items and prescription medications. Prepared food, over-the-counter medications, and "medical marijuana" are not exempt from sales tax.
The sale or lease of motor vehicles for use on the road incurs an additional 0.3% tax, rental of a car for less than 30 days has an additional state/local tax of 8.9%. When renting a car for less than 30 days in Seattle, the total sales tax is 18.6%. When purchasing an automobile, if one trades in a car, the state subtracts the price of the trade when calculating the sales tax to be paid on the automobile (e.g., purchasing a $40,000 car, and trading a $20,000 car, a person would be taxed on the difference of $20,000 only, not the full amount of the new vehicle).
When staying at a hotel (60+ rooms capacity) in Seattle, the sales tax is 15.6%. Residents of Canada and U.S. states or possessions (only U.S. and Canadian locations having a sales tax of less than 3%, e.g., Oregon, Alaska, and Alberta
) are exempt from sales tax on purchases of tangible personal property
for use outside the state. Stores at the border will inquire about residency, and exempt qualified purchasers from the tax.
A seller of a house or real estate pays excise taxes on the full sale price. The amount varies by county. In King
and Snohomish
counties, it is up to 1.78%. For example, selling a house for $500,000 will incur a tax of $8,900.
Residents of Washington, who purchase goods for use in Washington, must pay a use tax in lieu of a sales tax, if any one of four conditions is true: If a Washington resident purchases goods and certain services in other states that do not charge a sales tax or charge a sales tax rate less than the sales-tax rate in Washington, or if an out-of-state seller does not collect Washington sales tax, the resident must pay a use tax on all goods that will be used in Washington. Use tax must also be paid if a Washington resident purchases goods from a seller who is not authorized to collect sales tax or if personal property is acquired with the purchase of real property. Washington state does not typically pursue use tax collection for most purchases. However, in 2005, the Washington State Department of Revenue began to make a concerted effort to collect use tax on artworks acquired in other states.
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% tax on prepared food and beverages in King County.
April 1, 2008 saw tax increases in King County (+.001), Kittitas County (+.003), Mason County (+.001), and the city of Union Gap
(+.002).
On July 1, 2008, Washington stopped charging an origin-based sales tax, and started charging a destination-based sales tax. This change only applies to transactions beginning and ending within state lines and does not apply to other states. Additionally, Washington started collecting taxes from online retailers that have voluntarily agreed to start collecting the sales tax in return for not being sued for back taxes.
The city of Seattle charges a 10% tax on charges for parking garages to go toward mass transit. Total tax at parking garages is now 19.5%. This rate was set to go up to 12.5% on 1 January 2011, making the parking tax total 22%.
On November 4, 2008, voters in King County (Seattle) approved a 0.5% increase in the sales tax. Taxes within the city were increased to 9.5% on retail purchases. This increase was supposed to be effective January 1, 2009, but was pushed back until April 2009. (For the first quarter of 2009, the tax rate in Seattle was 9%.)
Midterm elections that occurred on November 2, 2010, saw sweeping voter-enacted tax changes with the passage of Initiative 1107. The initiative repealed all taxes levied on candy, gum, snack foods, carbonated beverages, and bottled water that had been imposed by the state legislature on June 1, 2010. Initiative 1107 also lowered the B&O tax on food products that contain meat. The Department of Revenue stated that all tax rollbacks were to take effect on December 2, 2010, directing retailers to stop collecting the sales tax at that time. The language of the initiative did not order the state to refund any tax that had been previously collected.
has the distinction of being the first US state to enact a sales tax. It currently stands at 6%. The sales tax on food currently stands at 3%. Effective January 1, 2006, the sales tax on food was lowered to 5%, and on July 1, 2007, it was lowered further to 4%. The sales tax on food was again lowered to 3% on July 1, 2008. However, the reduced rate of tax does not apply to sales, purchases and uses by consumers of prepared food. Prescription drugs are not subject to sales tax. Credit is allowed for sales or use taxes paid to another state with respect to the purchase.
An individual who titles a motor vehicle with the West Virginia Division of Motor Vehicles must pay a $10.00 title fee and a 5 percent title privilege tax (rather than the 6 percent sales tax). For vehicles purchased new by West Virginia residents, the measure of this tax is the net sales price of the vehicle. For used vehicles, and for vehicles previously titled in other states, the tax is measured by the National Automobile Dealers Association
book value of the vehicle at the time of registration. No credit is issued for any taxes paid to another state. Trailers, motorboats, all-terrain vehicles and snowmobiles are also subject to this tax. As of June 7, 2007, new residents of West Virginia no longer have to pay the 5 percent title privilege tax on vehicles, as long as the vehicles were validly titled to the same owner outside the state.
West Virginia is a member of the Streamlined Sales Tax Project
. The streamlined sales tax agreement has effected significant in-state tax changes. West Virginia's Energy Star Sales Tax Free Holiday was inspired by similar holidays in other states. The reduction of the food tax was similarly influenced. West Virginia adopted the definition of food found in the Streamlined Sales Tax Agreement in deciding what food is subject to preferential tax rates.
has a 5% state sales tax, with 62 of the 72 counties charging an extra 0.5% "County Tax".
The state instituted a 0.1% sales tax in five counties (Milwaukee, Ozaukee, Racine, Washington, Waukesha
), effective January 1, 1996, to cover the cost of building Miller Park in Milwaukee. The tax was originally scheduled to be retired in 2014, however it is now not expected to collect enough taxes to cover the entire cost until 2017. There had been talk of extending the tax to pay for a new stadium for the Milwaukee Bucks
, but the plan failed to gain any momentum.
Brown County collects a 0.5% tax for all purchases which funded the remaining cost of a $295 million renovation of Lambeau Field
, as well as a payment to the Green Bay Packers
to cover part of the cost of operating and maintaining the stadium through the year 2031. The necessary funds are expected to all be collected by about 2015, when the tax is currently scheduled to end.
The municipalities of Lake Delton
, Wisconsin Dells
, Bayfield
, and Eagle River
have also been authorized to adopt an additional 1% sales tax, due to their status as popular tourist destinations.
Milwaukee County also has an additional local exposition tax on hotel rooms, car rentals, and food and beverage, which funds the Wisconsin Center Tax District.
In all cases, prescriptions, most foods (with the exception of candy, dietary supplements, soft drinks, and prepared foods), and newspapers, among other items, are exempt from sales tax, however over-the-counter medications, and certain types of repair and installation services are not tax exempt.
has a 4% state sales tax, with counties adding up to an additional 3%, resulting in a maximum rate of 7%. In addition, resort district areas have the option to impose an additional 3% tax. Exemptions include food which is not designed to be consumed on-premises and sales of agricultural equipment. Unlike most states, in Wyoming labor falls under the jurisdiction of sales tax. All labor on both tangible and intangible property are taxable, however labor which permanently modifies real property
is exempt.
Unlike the value added tax
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
, a sales tax is imposed only once, at the retail level, on any particular item. However, 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 jurisdictions provide numerous categories of goods and services that are exempt from sales tax, or taxed at reduced rates. The purchase of goods for further manufacture or for resale is uniformly exempt from sales tax. Most jurisdictions exempt food sold in grocery stores, prescription medications, and many agricultural supplies.
Sales taxes, including those imposed by local governments, are generally administered at the state level. States imposing sales tax require retail sellers to collect tax from customers, file returns, and remit the tax to the state. 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. States are prohibited from requiring out of state sellers to collect tax unless the seller has established a physical presence in the state sufficient to establish a nexus.
What is taxed
Sales taxes are imposed only on taxable transfers of property 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 may be imposed on sales to consumers and to businesses. All states exempt certain types of goods from sales and use tax. Those states that tax services tax only certain services. Some states tax certain types of property rentals. Most transfers of intangible property are not subject to sales tax. Definitions become critical.Taxable sales
Transfers of tangible personal property for cash or the promise to pay cash (sales) are often subject to sales tax, with exceptions. Sales tax does not apply to transfers of real property, though some states impose a real estate transfer or documentary tax on such transfers. All states provide some exemptions from sales tax for wholesale sales, that is, sales for resale. However, some states tax sales for resale through vending machines. Most states also exempt bulk sales, such as sales of an entire business. Most states exempt from sales tax goods purchased for use as ingredients or parts in further manufacturing. Buyers in exempt sales must follow certain procedures or face tax.Sales to businesses and to consumers are generally taxed the same, except as noted in the preceding paragraph. Businesses receive no offset to sales tax collection and payment obligations for their own purchases. This differs significantly from value added taxes.
The place and manner of sale may affect whether a sale of particular goods is taxable. Many states tax food for consumption on premises but not food sold for off premises consumption. The use to which goods are put may also affect whether the sale is subject to tax. Goods used as ingredients in manufacturing may avoid tax, where the same goods used as supplies may not.
Rentals
Many states tax rental of tangible personal property. Often the tax is not dependent on the use to which the property will be put.Exempt organizations
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.Use tax
The states imposing sales taxes also impose a similar tax on buyers of taxable property or services in those cases where sales 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.Taxable value
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 goods.
Taxable goods
No state imposes sales tax on all types of goods. State laws vary widely as to what goods are subject to tax. Food for preparation and consumption in the home is generally not taxable, nor are prescription medications. By contrast, restaurant meals are often taxed. See the table below for a brief sample.Many states provide exemptions for specific types of goods, and not for others. Certain types of foods may be exempt, and certain types taxable, even when sold in a grocery store for home consumption. Lists of what goods are taxable and what are not may be voluminous.
Services and construction
Most states tax some services, and some states tax many services. However, taxation of services is the exception rather than the rule. Few states tax the services of a doctor, dentist, or attorney. Services performed in connection with sale of tangible personal property are often taxed. Most states, however, tax services that are an integral part of producing goods, such as printing or cabinet making.Telecommunications services are subject to a tax similar to a sales tax in most states. Only a few states tax internet access or other information services.
Construction services are rarely taxed by states. Materials used in construction of real property 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.
Intangible property
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.Sales for resale
All states exempt from sales or use tax purchases of goods made for resale in the same form. In many states, resale includes rental of the purchased property. Where the purchased property is not exactly the property resold, the purchase may be taxable. Further, use of the property before sale may defeat the resale exemption. Goods purchased for free distribution may be taxed on purchase in some states, and not in others.Goods purchased to be used as ingredients in manufacturing tangible personal property are generally not taxable. Purchases of food by a restaurant generally are not taxable in those states that tax sales by restaurants, even though the ingredients are transformed. Steel purchased to be part of machines is generally not taxable. However, supplies consumed by the same businesses may be taxable. Criteria vary widely by state.
Purchase of goods to be provided as part of performance of services may be taxed. Airlines and hotels may be taxed on purchases of food to be provided as part of their services, such as in-flight meals or free breakfast. Where there is a separate charge for such goods, they may be considered purchased for resale.
Distinguishing goods from nontaxable items
Since services and intangibles are typically not taxed, the distinction between a taxable sale of tangible property and a nontaxable service or intangible transfer is a major source of controversy. Many state tax administrators and courts look to the "true object" or "dominant purpose" of the transaction to determine if it is a taxable sale. Some courts have looked at the significance of the property in relation to the services provided. Where property is sold with an agreement to provide service (such as an extended warranty or service contract), the service agreement is generally treated as a separate sale if it can be purchased separately. Michigan and Colorado courts have adopted a more holistic approach, looking at various factors for a particular transaction.Collection, payment and tax returns
Sales taxes are collected by vendors in most states. Use taxes are self assessed by purchasers.Many states require individuals and businesses who regularly make sales to register with the state. All states imposing sales tax require that taxes collected be paid to the state at least quarterly. Most states have thresholds at which more frequent payment is required. Some states provide a discount to vendors upon payment of collected tax.
Sales taxes collected in some states are considered to be money owned by the state, and consider a vendor failing to remit the tax as in breach 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 many local jurisdictions require separate reporting. Some jurisdictions permit or require electronic filing of returns.
Purchasers of goods who have not paid sales tax in their own jurisdiction must file use tax returns to report taxable purchases. Many states permit such filing for individuals as part of individual income tax returns.
Exemption certificates
Purchasers are required to pay sales tax unless they present the seller with certification that the purchase is exempt from tax (exemption certificate). The certificate must be on a form approved by the state. 38 states have approved use of the Multistate Tax CommissionMultistate Tax Commission
The Multistate Tax Commission is a United States intergovernmental state tax agency created by the in 1967. As of 2011, 47 states are members of the Commission in some capacity. The Commission members, acting together, attempt to promote uniformity in state tax laws...
's Uniform Sales and Use Tax Certificate.
Penalties
Persons required to file sales or use tax returns who do not file are subject to penalties. Persons who fail to properly pay sales and use tax when due are also subject to penalties. The penalties tend to be based on the amount of tax not paid, and vary by jurisdiction.Tax audits
All states imposing sales taxes examine sales and use tax returns of many taxpayers each year. Upon such audit, the state may propose adjustment of the amount of tax due. Taxpayers have certain rights of appeal, which vary by jurisdiction. Some states require payment of tax prior to judicial appeal, and some states consider payment of tax an admission of the tax liability.Constitutional limitations
The United States Constitution generally does not limit the ability of a state to impose a sales or use tax on persons using goods within the state. However, it does impose limitations on each state's ability to tax interstate commerce under the Commerce ClauseCommerce Clause
The Commerce Clause is an enumerated power listed in the United States Constitution . The clause states that the United States Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." Courts and commentators have tended to...
and the Due Process Clause. Only sellers with some minimal connection (nexus) with the state can be required to collect sales tax.
Several state constitutions impose limitations on sales tax. These limitations restrict or prohibit the taxing of certain items, such as food,
By jurisdiction
Sales tax rates and what is taxed vary by jurisdiction. The following table compares taxes on selected classes of goods in the states. Significant other differences apply. Following the table is abbreviated coverage of selected sales tax rates by state.Summary table
| State | General Tax | Total With Max Local Surtax | |Prepared Food | |Non-prescription Drug | |||
|---|---|---|---|---|---|---|---|
| Alaska | 0% | 7% | |||||
| Arizona | 9.1% | 10.6% | |||||
| Arkansas | 6% | 9.25% | 1.5%+ | ||||
| California | 7.25% | 9.75% | |||||
| Colorado | 2.9% | 8% | |||||
| Connecticut | 6% | 6.35% | |||||
| Delaware | 0% | 0% | |||||
| District of Columbia | 6% | 6% | 10% | ||||
| Florida | 6% | 7.5% | 9% (max) | ||||
| Georgia | 4% | 8% | |||||
| Hawaii | 4% | 4.712% | |||||
| Idaho | 6% | 6% | |||||
| Illinois | 6.25% | 11.5% | 1% | 1% | 1% | ||
| Indiana | 7% | 9% | 9% (max) | ||||
| Iowa | 6% | 7% | |||||
| Kansas | 7.3% | 8.65% | |||||
| Kentucky | 6% | 6% | |||||
| Louisiana | 4% | 9% | |||||
| Maine | 5% | 5% | 7% | ||||
| Maryland | 6% | 6% | |||||
| Massachusetts | 6.25% | 6.25% | 7% (max) | > $175 | |||
| Michigan | 6% | 6% | |||||
| Minnesota | 6.875% | 7.875% | 9.75% (max) | ||||
| Mississippi | 7% | 9% | |||||
| Missouri | 4.225% | 9.241% | 1.225% | ||||
| Montana | 0% | 3% | |||||
| Nebraska | 5.5% | 7% | 9.5% (Omaha) |
||||
| Nevada | 6.85% | 8.1% | |||||
| New Hampshire | 0% | 0% | 9% | ||||
| New Jersey | 7% | 7% | |||||
| New Mexico | 5.125% | 8.5625% | |||||
| New York | 4% | 8.875% | |||||
| North Carolina | 4.75% | 7.25% | 2% | 9.25% (max) | |||
| North Dakota | 5% | 7% | |||||
| Ohio | 5.5% | 7.75% | |||||
| Oklahoma | 4.5% | 8.5% | |||||
| Oregon | 0% | 5% | |||||
| Pennsylvania | 6% | 8% | |||||
| Puerto Rico | 5.5% | 7% | |||||
| Rhode Island | 7% | 7% | 8% | ||||
| South Carolina | 6% | 9% | 10.5% | ||||
| South Dakota | 4% | 6% | |||||
| Tennessee | 7% | 9.75% | 5.5% | ||||
| Texas | 6.25% | 8.25% | |||||
| Utah | 5.95% | 8.35% | 4% | ||||
| Vermont | 6% | 7% | 10% | ||||
| Virginia | 5% | 5% | 2.5% | 5%+ | |||
| Washington | 6.5% | 9.5% | 10% (max) | ||||
| West Virginia | 6% | 6% | 3% | ||||
| Wisconsin | 5% | 5.6% | |||||
| Wyoming | 4% | 7% |
| Color | Explanation |
|---|---|
| Exempt from general sales tax | |
| Subject to general sales tax | |
| 7% | Taxed at a higher rate than the general rate |
| 3% | Taxed at a lower rate than the general rate |
| 3%+ | Some locations tax more |
| 3% (max) | Some locations tax less |
| > $50 | Taxed purchases over $50 (otherwise exempt) |
| No state-wide general sales tax |
(1) Some states tax food, but allow an (income) tax credit to compensate poor households. They are: HI, ID, KS, OK, SD, and WY.
(2) Includes statewide local tax of 1.0% in California and 1.0% in Virginia.
(3) Tax rate may be adjusted annually according to a formula based on balances in the unappropriated general fund and the school foundation fund.
(4) Food sales are subject to local sales taxes.
Alabama
AlabamaAlabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
has a state general sales tax of 4.00%, plus any additional local taxes which can amount to a combined total sales tax of up to 12 percent in some cities http://www.revenue.alabama.gov/salestax/sales/index.cfm. Alabama is one of several states that do not exempt food from state taxes. The capital of Montgomery
Montgomery, Alabama
Montgomery is the capital of the U.S. state of Alabama, and is the county seat of Montgomery County. It is located on the Alabama River southeast of the center of the state, in the Gulf Coastal Plain. As of the 2010 census, Montgomery had a population of 205,764 making it the second-largest city...
has a sales tax of 10%. The state's largest city, Birmingham
Birmingham, Alabama
Birmingham is the largest city in Alabama. The city is the county seat of Jefferson County. According to the 2010 United States Census, Birmingham had a population of 212,237. The Birmingham-Hoover Metropolitan Area, in estimate by the U.S...
, has a sales tax of 10 percent.
Alaska
There is no state sales tax in AlaskaAlaska
Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...
; however, local governments - which include boroughs, the Alaska equivalent of counties
County (United States)
In the United States, a county is a geographic subdivision of a state , usually assigned some governmental authority. The term "county" is used in 48 of the 50 states; Louisiana is divided into parishes and Alaska into boroughs. Parishes and boroughs are called "county-equivalents" by the U.S...
, and municipalities - may levy up to 7.5 percent. As of January 2009, 108 boroughs and municipalities of them do so. Municipal sales taxes are collected in addition to borough sales taxes, if any. Regulations and exemptions vary widely across the state. The two largest cities, Anchorage
Anchorage, Alaska
Anchorage is a unified home rule municipality in the southcentral part of the U.S. state of Alaska. It is the northernmost major city in the United States...
and Fairbanks
Fairbanks, Alaska
Fairbanks is a home rule city in and the borough seat of the Fairbanks North Star Borough in the U.S. state of Alaska.Fairbanks is the largest city in the Interior region of Alaska, and second largest in the state behind Anchorage...
, do not charge a local sales tax. The state capital, Juneau
Juneau, Alaska
The City and Borough of Juneau is a unified municipality located on the Gastineau Channel in the panhandle of the U.S. state of Alaska. It has been the capital of Alaska since 1906, when the government of the then-District of Alaska was moved from Sitka as dictated by the U.S. Congress in 1900...
, has a 5 percent sales tax rate.
Arizona
ArizonaArizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
has a transaction privilege tax
Transaction privilege tax
Transaction privilege tax refers to a gross receipts tax levied by the state of Arizona on certain persons for the privilege of conducting business in the state. TPT differs from the “true” sales tax imposed by many other U.S. states as it is imposed upon the seller or lessor rather than the...
(TPT) that differs from a "true" sales tax in that it is a gross receipts tax
Gross receipts tax
A gross receipts tax or gross excise tax is a tax on the total gross revenues of a company, regardless of their source. A gross receipts tax is similar to a sales tax, but it is levied on the seller of goods or service consumers...
, a tax levied on the gross receipts of the vendor and not a liability of the consumer. (As explained in Arizona Administrative Code rule R15-5-2202, vendors are permitted to pass the amount of the tax on to the consumer, but remain the liable parties for the tax to the state.) TPT is imposed under 16 tax classifications (as of November 1, 2006), with the tax rate most commonly encountered by Arizona consumers (e.g., for retail transactions) set at 6.6 percent.
Cities and counties can add as much as 6 percent to the total rate. Food for home consumption and prescription drugs (including prescription drug
Prescription drug
A prescription medication is a licensed medicine that is regulated by legislation to require a medical prescription before it can be obtained. The term is used to distinguish it from over-the-counter drugs which can be obtained without a prescription...
s and certain prescribed homeopathic medication
Homeopathy
Homeopathy is a form of alternative medicine in which practitioners claim to treat patients using highly diluted preparations that are believed to cause healthy people to exhibit symptoms that are similar to those exhibited by the patient...
) are two of many items of tangible personal property that are statutorily exempt from the state retail TPT; cities can 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. The capital and largest city of Phoenix
Phoenix, Arizona
Phoenix is the capital, and largest city, of the U.S. state of Arizona, as well as the sixth most populated city in the United States. Phoenix is home to 1,445,632 people according to the official 2010 U.S. Census Bureau data...
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.
Arkansas
ArkansasArkansas
Arkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River...
has a state sales tax of 7.00%, plus any additional local taxes; for instance, Little Rock
Little Rock, Arkansas
Little Rock is the capital and the largest city of the U.S. state of Arkansas. The Metropolitan Statistical Area had a population of 699,757 people in the 2010 census...
charges a 0.5% city sales tax.
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 on groceries remained unchanged.
California
CaliforniaCalifornia
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
has a sales tax of 7.25%, which can total up to 9.75% with local sales tax included. Partly this rate compensates for the much reduced property tax revenue brought on by Proposition 13. Sales and use taxes in the state of California are collected by the publicly elected Board of Equalization, whereas income and franchise taxes are collected by the Franchise Tax Board
California Franchise Tax Board
The California Franchise Tax Board collects state personal income tax and corporate income tax of California. It is part of the California State and Consumer Services Agency....
.
In general, sales tax is required on all purchases of tangible personal property to its ultimate consumer. Services are not subject to sales tax (but may be subject to other taxes). Liability for sales tax attaches to the seller, not the buyer; but the seller is allowed by law to collect the tax from the buyer (and if the seller does so, the buyer is obligated to pay it). Unprepared food, bakery items, hot beverages, livestock, crops and seeds, fertilizer used to grow food, certain devices related to alternative energy, and one-time sales are among the items exempt from sales tax.
Critics of the current sales tax regime charge that it gives local governments an incentive to promote commercial development (through zoning and other regulations) over residential development, including the use of eminent domain condemnation proceedings to transfer real estate to higher sales tax generating businesses.
Colorado
ColoradoColorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
's state sales tax is 2.9% with some cities and counties levying additional taxes. Denver's tangibles tax is 3.62%, with food eaten away from the home being taxed at 4%, most unprepared food (groceries) are exempt. There is also a football stadium tax, mass transit tax, and scientific and cultural facilities tax. The total sales tax varies by city and county. Total sales tax on an item purchased in Falcon, Colorado
Falcon, Colorado
Falcon is an unincorporated exurb in El Paso County, Colorado, United States. It lies along US 24 about 14 miles northeast of Colorado Springs. A railroad hub in the early 20th century, the town spent several decades as a quiet ranching community until it experienced rapid residential growth...
, would be 4.9% (2.9% state, 1% county, and 1% RTA). The sales tax rate in Larimer County is roughly 7.5%. Most transactions in Denver and the surrounding area are taxed at a total of about 8%. The exact sales tax rate for Denver is 7.72%.
Connecticut
ConnecticutConnecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
has a 6.35% sales tax, with no additional local taxes. Most non-prepared food products are exempt, as are most prescription and nonprescription medications, all internet services, all magazine and newspaper subscriptions, and textbooks (for college students only). Also Compact Fluorescent Light Bulbs are tax exempt per Connecticut State Law
Shipping and delivery charges (including charges for U.S. postage) made by a retailer to a customer are subject to sales and use taxes when provided in connection with the sales of taxable tangible personal property or services. The tax applies even if the charges are separately stated and applies regardless of whether the shipping or delivery is provided by the seller or by a third party. No tax is due on shipping and delivery charges in connection with any sale that is not subject to sales or use tax. Shipping or delivery charges related to sales for resale or sales of exempt items are not taxable. Likewise, charges for mailing or delivery services are not subject to tax if they are made in connection with the sale of nontaxable services.
Delaware
DelawareDelaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
does not assess a sales tax on consumers. The state does, however, impose a tax on the gross receipts of most businesses. Business and occupational license tax rates range from 0.096 percent to 1.92 percent, depending upon the category of business activity. However, it does charge a 3.75% 'document' fee on vehicle registrations.
District of Columbia
Washington, D.C.Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, has a sales tax rate of 6.00%. The tax is imposed on sale of tangible personal property and selected services. A 10% tax is imposed on liquor sold for off premises consumption, 10% on restaurant meals (including carry-out) and rental cars, 12% on parking, and 14% on hotel accommodations. Groceries, prescription and non-prescription drugs, and residential utilities services are exempt from the District's sales tax.
The District once had two sales tax holidays each year, one during "back-to-school" and one preceding the holiday shopping season. The 'back to school' tax holiday was repealed on May 12, 2009.
Florida
FloridaFlorida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
has a general sales tax rate of 6%. The tax is imposed on the sale or rental of goods, the sale of admissions, the lease, license, or rental of real property, the lease or rental of transient living accommodations, and the sale of a limited number of services such as commercial pest control, commercial cleaning, and certain protection services. There are a variety of exemptions from the tax, including groceries and prescriptions.
A "discretionary sales surtax" may be imposed by the counties of up to 1.5%, charged at the rate of the destination county (if shipped). This is 1% in most counties, 0.5% in many, 1.5% in a few such as Leon
Leon County, Florida
Leon County is a county located in the state of Florida, named after the Spanish explorer Juan Ponce de León. At the 2010 Census, the population was 275,487. The county seat of Leon County is Tallahassee which also serves as the state capital. The county seat is home to two of Florida's major...
, and 0.25% in one county (Alachua
Alachua County, Florida
Alachua County is a county located in the U.S. state of Florida. The U.S. Census Bureau 2006 estimate for the county is 227,120. Its county seat is Gainesville, Florida. Alachua County is the home of the University of Florida and is also known for its diverse culture, local music, and artisans...
). A few have none at all. Most have an expiration date
Expiration date
Expiration date can refer to:*The shelf life of a grocery item*Expiration *Copyright expiration*Expiration Date , a 2006 comedy* Expiration Date, a novel by Tim Powers...
, but a few do not. Only the first $5,000 of a large purchase is subject to the surtax rate. Most counties levy the surtax for education or transportation improvements.
There are annual sales tax holidays, such as a back-to-school holiday on clothing, books, and school supplies under a certain price, as well as one in June 2007 to promote hurricane preparedness
Hurricane preparedness
Hurricane preparedness encompasses the actions and planning taken before a tropical cyclone strikes to mitigate damage and injury from the storm...
. The 2008 Legislators did not enact any sales tax holidays.
Florida also permits counties to raise a "tourist development tax" of up to an additional 6% for stays of 6 months or less on any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, roominghouse, mobile home park, recreational vehicle park, condominium, or timeshare resort.
Georgia
GeorgiaGeorgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
has a 4% state sales tax rate. Groceries are exempt from the state sales tax, but still subject to tax by the local sales tax rate. Counties may impose local sales tax of 1%, 2%, or 3%, consisting of up to three 1% local-option sales taxes (out of a set of five) as permitted by Georgia law. These include a SPLOST, a homestead exemption
Homestead exemption
Homestead exemption is a legal regime designed to protect the value of the homes of residents from property taxes, creditors, and circumstances arising from the death of the homeowner spouse...
(HOST), and one for public schools which can be put forth for a referendum
Referendum
A referendum is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment, a law, the recall of an elected official or simply a specific government policy. It is a form of...
by the school board instead of the county commission
County commission
A county commission is a group of elected officials charged with administering the county government in local government in some states of the United States. County commissions are usually made up of three or more individuals...
(in cooperation with its city council
City council
A city council or town council is the legislative body that governs a city, town, municipality or local government area.-Australia & NZ:Because of the differences in legislation between the States, the exact definition of a City Council varies...
s). Also, the city of Atlanta imposes an additional 1% municipal-option sales tax (MOST), as allowed by special legislation
Special legislation
Special legislation is a legal term of art used in the United States which refers to acts of a state legislature which apply only to a specific municipality which is identified by name in the legislation.In some states, such as Pennsylvania, the state constitution prohibits special legislation;...
of the Georgia General Assembly
Georgia General Assembly
The Georgia General Assembly is the state legislature of the U.S. state of Georgia. It is bicameral, being composed of the Georgia House of Representatives and the Georgia Senate....
, solely for the purpose of fixing its water and sewerage
Sanitary sewer
A sanitary sewer is a separate underground carriage system specifically for transporting sewage from houses and commercial buildings to treatment or disposal. Sanitary sewers serving industrial areas also carry industrial wastewater...
systems.
As of July 2008, total sales tax rates in Georgia are 3% for groceries and 7% for other items in the vast majority of its 159 counties. A few counties charge only 2% local tax (6% total on non-grocery items), and four partially exempt groceries from the local tax by charging 2% on food, and 3% (7% total) on other items. Fulton
Fulton County, Georgia
Fulton County is a county located in the U.S. state of Georgia. Its county seat is Atlanta, the state capital since 1868 and the principal county of the Atlanta metropolitan area...
and DeKalb
DeKalb County, Georgia
DeKalb County is a county located in the U.S. state of Georgia. The population of the county was 691,893 at the 2010 census. Its county seat is the city of Decatur. It is bordered to the west by Fulton County and contains roughly 10% of the city of Atlanta...
counties charge 1% for MARTA
Metropolitan Atlanta Rapid Transit Authority
The Metropolitan Atlanta Rapid Transit Authority or MARTA is the principal rapid-transit system in the Atlanta metropolitan area and the ninth-largest in the United States. Formed in 1971 as strictly a bus system, MARTA operates a network of bus routes linked to a rapid transit system consisting...
, and adjacent metro Atlanta
Metro Atlanta
The Atlanta metropolitan area or metro Atlanta, officially designated by the US Census Bureau as the Atlanta-Sandy Springs-Marietta Metropolitan Statistical Area, is the most populous metro area in the U.S. state of Georgia and the ninth-largest metropolitan statistical area in the United States...
counties may do so by referendum if they so choose. For the portions of Fulton and DeKalb within the city of Atlanta, the total is at 8% (4% on groceries) due to the MOST.
Similar to Florida and certain other states, Georgia used to have two sales tax holidays per year. One was for back-to-school sales the first weekend in August, but sometimes starting at the end of July. A second usually occurred in October, for energy-efficient
Efficient energy use
Efficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...
home appliance
Home appliance
Home appliances are electrical/mechanical machines which accomplish some household functions, such as cooking or cleaning. Home appliances can be classified into:*Major appliances, or White goods*Small appliances, or Brown goods...
s with the Energy Star
Energy Star
Energy Star is an international standard for energy efficient consumer products originated in the United States of America. It was first created as a United States government program during the early 1990s, but Australia, Canada, Japan, New Zealand, Taiwan and the European Union have also adopted...
certification
Certification
Certification refers to the confirmation of certain characteristics of an object, person, or organization. This confirmation is often, but not always, provided by some form of external review, education, assessment, or audit...
. There were no sales tax holidays in 2010.
Georgia has many exemptions available to specific businesses and industries. To identify potential exemptions, businesses and consumers must research the laws and rules for sales and use tax and review current exemption forms.
Hawaii
HawaiiHawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
does not have a sales tax per se, but it does have a gross receipts tax
Gross receipts tax
A gross receipts tax or gross excise tax is a tax on the total gross revenues of a company, regardless of their source. A gross receipts tax is similar to a sales tax, but it is levied on the seller of goods or service consumers...
(called the General Excise Tax) which applies to nearly every conceivable type of transaction
Financial transaction
A financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...
(including services), and is technically charged to the business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
rather than the consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
. Hawaii law allows business to pass on the tax to the consumer in similar fashion to a sales tax.
Unlike other states, rent, medical services and perishable foods are subject to the excise tax. Also, unlike other states, businesses may or may not show the tax separately on the receipt
Receipt
A receipt is a written acknowledgment that a specified article or sum of money has been received as an exchange for goods or services. The receipt is evidence of purchase of the property or service obtained in the exchange.-Printed:...
, as it is technically part of the selling price. 4.0% is charged at retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
with an additional 0.5% surcharge in the City and County of Honolulu (for a total of 4.5% on Oahu sales), and 0.5% is charged on wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
. However, the state also allows "tax on tax" to be charged, which effectively means a customer can be billed as much as 4.166% (4.712% on Oahu
Oahu
Oahu or Oahu , known as "The Gathering Place", is the third largest of the Hawaiian Islands and most populous of the islands in the U.S. state of Hawaii. The state capital Honolulu is located on the southeast coast...
). The exact dollar or percentage amount to be added must be quoted to customers within or along with the price. The 0.5% surcharge on Oahu was implemented to fund the new rail transport system. As with sales tax in other states, nonprofit organizations may apply for an exemption from the tax.
Idaho
IdahoIdaho
Idaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state....
has a 6.0% state sales tax. Some localities levy an additional local sales tax.
Illinois
IllinoisIllinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
' sales and use tax scheme includes four major divisions: Retailers' Occupation Tax, Use Tax, Service Occupation Tax and the Service Use Tax. Each of these taxes is administered by the Illinois Department of Revenue. The Retailers' Occupation Tax is imposed upon persons engaged in the business of selling tangible personal property to purchasers for use or consumption. It is measured by the gross receipts of the retailer. The base rate of 6.25% is broken down as follows: 5% State, 1% City, 0.25% County. Local governments may impose additional tax resulting in a combined rate that ranges from the State minimum of 6.25% to a current high of 11.50% in certain business districts in Cook County
Cook County, Illinois
Cook County is a county in the U.S. state of Illinois, with its county seat in Chicago. It is the second most populous county in the United States after Los Angeles County. The county has 5,194,675 residents, which is 40.5 percent of all Illinois residents. Cook County's population is larger than...
. Springfield charges 8.00% total (including state tax). A complementary Use Tax is imposed upon the privilege of using or consuming property purchased anywhere at retail from a retailer. Illinois registered retailers are authorized to collect the Use Tax from their customers and use it to offset their obligations under the Retailers' Occupation Tax Act. Since the Use Tax rate is equivalent to the corresponding Retailers' Occupation Tax rate, the amount collected by the retailer matches the amount the retailer must submit to the Illinois Department of Revenue. The combination of these two taxes is what is commonly referred to as "sales tax." If the purchaser does not pay the Use Tax directly to a retailer (for instance, on an item purchased from an Internet seller), they must remit it directly to the Illinois Department of Revenue.
The Service Occupation Tax is imposed upon the privilege of engaging in service businesses and is measured by the selling price of tangible personal property transferred as an incident to providing a service. The Service Use Tax is imposed upon the privilege of using or consuming tangible personal property transferred as an incident to the provision of a service. An example would be a printer of business cards. The printer owes Service Occupation Tax on the value of the paper and ink transferred to the customer in the form of printed business cards. 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 State of Illinois, the government of the United States of America, or the government of any foreign country.
The city of Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
once had the highest total sales tax of all major U.S. cities (10.25%), including a 3% Chicago Soft Drink Tax and a 1% food and beverage tax on prepared food and beverage purchases in the downtown area.
Illinois requires residents who make purchases online or when traveling out-of-state to report those purchases on their state income tax form and pay use tax.
Indiana
IndianaIndiana
Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...
has a 7% state sales tax. The tax rate was raised from 6% on April 1, 2008, to offset the loss of revenue from the statewide property tax reform, which is expected to significantly lower property taxes. Untaxed retail items include medications, water, ice and unprepared, raw staple foods or fruit juices. Many localities, inclusive of either counties or cities, in the state of Indiana also have a sales tax on restaurant food and beverages consumed in the restaurant or purchased to go. Revenues are usually used for economic development and tourism projects. This additional tax rate may be 1% or 2% or other amounts depending on the county in which the business is located. For example, in Marion County
Marion County, Indiana
Marion County is a county located in the U.S. state of Indiana. Census 2010 recorded a population of 903,393, making it the largest county in the state and 55th most populated county in the country, greater than the population of six states. The county seat is Indianapolis, the state capital and...
, the sales tax for restaurants is 9%. There is an additional 2% tax on restaurant sales in Marion County to pay for Lucas Oil Stadium
Lucas Oil Stadium
Lucas Oil Stadium is a multi-purpose sports stadium in Downtown Indianapolis, Indiana. The stadium celebrated its grand opening on August 24, 2008, and its ribbon-cutting ceremony August 16, 2008. It replaced the RCA Dome as the home field of the NFL's Indianapolis Colts. The stadium was built to...
and expansion of the Indiana Convention Center
Indiana Convention Center
The Indiana Convention Center is a convention center located in Downtown Indianapolis, Indiana. It contains over of open exhibit space and almost of group meeting space. It was finished in late 1983 along with the Hoosier Dome , which it was connected to prior the Dome's deconstruction in 2008....
.
Iowa
IowaIowa
Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...
has a 5% state sales tax, including 1% dedicated to local school districts. A local option sales tax of 1% is imposed in most cities and in the unincorporated portion of most counties, bringing the total up to a maximum of 7%. There is no tax on most unprepared food. The Iowa Department of Revenue provides information about local option sales taxes, including sales tax rate lookup.
Kansas
KansasKansas
Kansas is a US state located in the Midwestern United States. It is named after the Kansas River which flows through it, which in turn was named after the Kansa Native American tribe, which inhabited the area. The tribe's name is often said to mean "people of the wind" or "people of the south...
has a 6.3% state sales tax as of July 1, 2010. More than 700 jurisdictions within the state (cities, counties, and special districts) may impose additional taxes. For example, in the capital city of Topeka, retailers must collect 6.3% for the state, 1.15% for Shawnee County, and 1% for the city, for a total rate of 8.45%. As of July 2010, the highest rate was 8.85%, in Douglas County
Douglas County, Kansas
Douglas County is a county located in northeast Kansas, in the Central United States. As of the 2010 census, the county population was 110,826...
.
Kentucky
KentuckyKentucky
The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth...
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
LouisianaLouisiana
Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties...
has a 4% state sales tax: 3.97% to sales tax and .03% to Louisiana tourism district. The state sales tax is not charged on unprepared food. There are also taxes on the parish (county) level and some on the city levels, Baton Rouge
Baton Rouge, Louisiana
Baton Rouge is the capital of the U.S. state of Louisiana. It is located in East Baton Rouge Parish and is the second-largest city in the state.Baton Rouge is a major industrial, petrochemical, medical, and research center of the American South...
has a 5% sales tax. Parishes may add local taxes up to 5%, while local jurisdictions within parishes may add more. Louisiana also bids out sales tax audits to private companies, with many being paid on a percentage collected basis.
Orleans Parish collects the maximum 5% tax rate for a total of 9% on general purpose items. This 5% is also charged on groceries.
Maine
MaineMaine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...
has a 5% general, service provider and use tax. The tax on lodging and prepared food is 7% and short term auto rental is 10%. These are all generally known as "sales tax".
Maryland
MarylandMaryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
has a 6% state sales and use tax (raised from 5% in 2007) (7% restaurant sales tax in Worcester County
Worcester County, Maryland
-2010:Whereas according to the 2010 U.S. Census Bureau:*82.0% White*13.6% Black*0.3% Native American*1.1% Asian*0.0% Native Hawaiian or Pacific Islander*1.7% Two or more races*1.3% Other races*3.2% Hispanic or Latino -2000:...
) as of January 3, 2008, with exceptions for medicine, residential energy, and most non-prepared foods (excluding candy, soda, and alcoholic beverages). Currently, many services (e.g., auto repair labor, haircuts, accounting) are not taxed. With this tax increase, Maryland added sales tax on Internet purchases and other mail items such as magazine subscriptions. Clothing is also taxable. Maryland has a "back-to-school" tax holiday on a limited number of consumer items. On July 1, 2011 the sales tax on alcohol was raised to 9% from 6%.
Massachusetts
MassachusettsMassachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
has a 6.25% state sales tax (raised from 5% in 2009). Meal tax on prepared food is 6.25% statewide, however
in some towns, voters chose to add in 0.75% (raising the tax to 7%), with that incremental revenue coming back to the town. Sales tax on liquor was repealed in a 2010 referendum vote.
Michigan
MichiganMichigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
has a 6% sales tax (raised from 4% in 1994). Michigan has a use tax of 6%, which is a tax that is applied to items that were brought into Michigan but not bought there, and of which taxes were not paid to the state in which the item was bought in. The tax is supposed to be paid when filing a resident's annual income tax.
A service tax was approved in September 2007, effective December 1, 2007, allowing certain services to be taxed. The services tax was repealed the same day it went into effect. There is no local sales tax in Michigan. There is now a Michigan sales tax on the total amount of online orders, meaning that shipping charges are now taxed. Food, periodicals, and prescription drugs are not taxed. Restaurants, however, do have a tax, but the tax is for the service and not on the food. Michigan also has recently introduced a business tax called the Michigan Business Tax (MBT) which replaces the Single Business Tax (SBT).
While not necessarily a tax, Michigan has the highest bottle deposit
Container deposit legislation
Container-deposit legislation is any law that requires collection of a monetary deposit on soft-drink, juice, milk, water, alcoholic-beverage, and/or other containers at the point of sale...
for carbonated beverages ($0.10) in the United States; however, it is refunded as an incentive for recycling. The bottle deposit was originally instituted in 1978 as a litter control initiative.
Minnesota
MinnesotaMinnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
currently has a 6.875% statewide sales tax. The statewide portion consists of two parts: a 6.5% sales tax with receipts going to the state General Fund, and a 3/8 of 1 percent tax going to arts and environmental projects. The 3/8 of 1 percent tax was passed by a statewide referendum on Nov. 4, 2008, and went into effect on July 1, 2009. Generally, food (not including prepared food, some beverages such as soda pop, and other items such as candy) and clothing are exempt from the sales tax. Prescription drugs are also exempt.
Local units of government may, with legislative approval, impose additional general sales taxes. As of July 1, 2008, an additional 0.25% Transit Improvement tax was phased in across five counties in the Minneapolis-St. Paul metropolitan area for transit development. These counties are Hennepin
Hennepin County, Minnesota
Hennepin County is a county located in the U.S. state of Minnesota, named in honor of the 17th-century explorer Father Louis Hennepin. As of 2010 the population was 1,152,425. Its county seat is Minneapolis. It is by far the most populous county in Minnesota; more than one in five Minnesotans live...
, Ramsey
Ramsey County, Minnesota
Ramsey County is a county located in the U.S. state of Minnesota, founded in 1849. As of 2010, the population was 508,640. Its county seat is St. Paul, which is also Minnesota's state capital. The county is named for Alexander Ramsey , the first governor of the Minnesota Territory...
, Anoka
Anoka County, Minnesota
Anoka County is the fourth-most populous county in the U.S. state of Minnesota. The county is bordered by the counties of Isanti on the north, Chisago and Washington on the east, Hennepin and Ramsey on the south, Sherburne on the west, and the Mississippi River on the southwest.As of 2010, Anoka...
, Dakota
Dakota County, Minnesota
Dakota County is the third most populous county in the U.S. state of Minnesota. The county is bordered by the Minnesota and Mississippi Rivers on the north, and the state of Wisconsin on the east. Dakota County comprises the southeast portion of seven-county Minneapolis-St. Paul, the thirteenth...
, and Washington
Washington County, Minnesota
Washington County is a county established in 1849 in the U.S. state of Minnesota. As of 2010, the population was 238,136. Its county seat is Stillwater.-History:...
. A 0.15% sales tax is imposed in Hennepin County to finance the Minnesota Twins
Minnesota Twins
The Minnesota Twins are a professional baseball team based in Minneapolis, Minnesota. They play in the Central Division of Major League Baseball's American League. The team is named after the Twin Cities area of Minneapolis and St. Paul. They played in Metropolitan Stadium from 1961 to 1981 and the...
' new Target Field
Target Field
Target Field is a baseball park located in downtown Minneapolis, Minnesota. It is the home ballpark of the Minnesota Twins, the city's Major League Baseball franchise. It is the franchise's sixth ballpark and third in Minnesota. The Twins moved to Target Field for the 2010 Major League Baseball...
. Several cities impose their own citywide sales tax: Saint Paul
Saint Paul, Minnesota
Saint Paul is the capital and second-most populous city of the U.S. state of Minnesota. The city lies mostly on the east bank of the Mississippi River in the area surrounding its point of confluence with the Minnesota River, and adjoins Minneapolis, the state's largest city...
(0.5%), Minneapolis (0.5%), Rochester
Rochester, Minnesota
Rochester is a city in the U.S. state of Minnesota and is the county seat of Olmsted County. Located on both banks of the Zumbro River, The city has a population of 106,769 according to the 2010 United States Census, making it Minnesota's third-largest city and the largest outside of the...
(0.5%), and Duluth
Duluth, Minnesota
Duluth is a port city in the U.S. state of Minnesota and is the county seat of Saint Louis County. The fourth largest city in Minnesota, Duluth had a total population of 86,265 in the 2010 census. Duluth is also the second largest city that is located on Lake Superior after Thunder Bay, Ontario,...
(1%).
These additional taxes increase the total general sales tax rates to 7.875% in Duluth, 7.775% in Minneapolis, 7.625% in Saint Paul, and 7.375% in Rochester.
In addition to general sales taxes, local units of government can, again with legislative approval, impose sales taxes on certain items. Current local option taxes include a "lodging" tax in Duluth (3%), Minneapolis (3%), and Rochester (4%), as well as served "food and beverage" tax in Duluth (2.25%).
Alcohol is taxed at an additional 2.5% gross receipts tax rate above the statewide 6.875% sales tax rate, for a total rate of 9.375%, not including any applicable local taxes. Which adds up to 10.375% in Duluth, 10.275% in Minneapolis, 10.125% in Saint Paul, and 9.875% in Rochester.
Mississippi
MississippiMississippi
Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...
has a 7% state sales tax. Cities and towns may implement an additional tourism tax on restaurant and hotel sales. The city of Tupelo
Tupelo, Mississippi
Tupelo is the largest city in and the county seat of Lee County, Mississippi, United States. It is the seventh largest city in the state of Mississippi, smaller than Meridian, and larger than Greenville. As of the 2000 United States Census, the city's population was 34,211...
has a 0.25% tax in addition to other taxes. Restaurant and fast food tax is 9%. The city of Hattiesburg
Hattiesburg, Mississippi
Hattiesburg is a city in Forrest County, Mississippi, United States. The population was 44,779 at the 2000 census . It is the county seat of Forrest County...
also has a 9% sales tax on Restaurant and fast food tax.
Missouri
MissouriMissouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
imposes a sales tax upon all sales of tangible personal property, as well as some "taxable services"; it also charges a use tax for the "privilege of storing, using or consuming within this state any article of tangible personal property." The state rate, including conservation and other taxes, is 4.225%, and counties, municipalities, and other political subdivisions charge their own taxes. Those additional local taxes combined with "community improvement district," "transportation development district," and "museum district" taxes can result in merchandise sales taxes in excess of 10%. The state sales tax rate on certain foods is 1.225%.
Missouri provides several exemptions from sales tax, such as purchases by charitable organizations or some common carriers (as opposed to "contract carriers"). Missouri also excludes some purchases from taxation on the grounds that such sales are not sales at retail; these include sales to political subdivisions. The Supreme Court of Missouri
Supreme Court of Missouri
The Supreme Court of Missouri is the highest court in the state of Missouri. It was established in 1820, and is located in Jefferson City, Missouri. Missouri voters have approved changes in the state's constitution to give the Supreme Court exclusive jurisdiction- the sole legal power to hear -...
in August, 2009, ruled that when a sale is excluded from taxation - as opposed to exempt from taxation - the seller must self-accrue sales tax on its purchase of the goods and remit the tax on such purchases it made. This decision was reversed by two similar - but not identical - statutes added during the 2010 general assembly's regular session.
Although the purchaser is obligated to pay the tax, the seller is obligated to remit the tax, and when the seller fails to remit, the obligation to pay falls on him. As compensation for collecting and remitting taxes, and as an incentive to timely remit taxes, sellers may keep two percent of all taxes collected each period. There are two exceptions to the general rule that the seller must pay the sales tax when he or she fails to collect it. First, no sales tax is due upon the purchase of a motor vehicle that must be titled. Instead, the purchaser pays the tax directly to the Department of Revenue within one month of purchase. As long as the vehicle is taken out of state within that first month of purchased and titled elsewhere, no tax is due in Missouri. Second, if the purchaser presents an exemption certificate to the buyer at the time of sale, then the purchaser may be assessed taxes on the purchases if the certificate was issued in bad faith.
Montana
MontanaMontana
Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,...
does not have a state sales tax but some municipalities which are big tourist destinations, such as Whitefish
Whitefish, Montana
Whitefish is a city in Flathead County, Montana, United States. The population was 5,032 at the 2000 census. It is home to a ski resort on Big Mountain called Whitefish Mountain Resort. Montana Governor Brian Schweitzer hails from Whitefish....
, Red Lodge
Red Lodge, Montana
Red Lodge is a city in and the county seat of Carbon County, Montana, United States. It is part of the Billings, Montana Metropolitan Statistical Area...
, Big Sky
Big Sky, Montana
Big Sky is a census-designated place in Gallatin and Madison counties in the southwestern part of the U.S. state of Montana. This unincorporated community straddles the two counties, is not considered a town, and has no town government. The primary industry of the area is tourism.Big Sky is...
, and West Yellowstone, have a small sales tax (up to 3%). Hotels, campgrounds and similar lodging charge a "lodging and usage tax", usually at the rate of 7%. Rental car companies charge a 4% tax on the base rental rate.
Nebraska
NebraskaNebraska
Nebraska is a state on the Great Plains of the Midwestern United States. The state's capital is Lincoln and its largest city is Omaha, on the Missouri River....
has a 5.5% state sales tax from which groceries are exempt. Municipalities have the option of imposing an additional sales tax of up to 1.5%, resulting in a maximum rate of 7.0%. Specific tax rates per counties are available on the web. Omaha also has a 2.5% tax on prepared food and drink.
Nevada
NevadaNevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
's state sales tax rate is 6.85%. Counties may impose additional rates via voter approval or through approval of the Legislature; therefore, the applicable sales tax will vary by county from 6.85% to 8.1% in Clark County
Clark County, Nevada
-Demographics:As of the census of 2000, there were 1,375,765 people, 512,253 households, and 339,693 families residing within the MSA. The racial makeup of the MSA was 71.6% White , 9.1% Black, 5.7% Asian, 0.8% American Indian and 12.8% of other or mixed race. 22.0% were Hispanic of any race...
. Clark County, which includes Las Vegas
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
, imposes four separate county option taxes in addition to the statewide rate - 0.25% for flood control, 0.50% for mass transit, 0.25% to fund the Southern Nevada Water Authority, and 0.25% for the addition of police officers in that county. In Washoe County
Washoe County, Nevada
Washoe County is a county located in the U.S. state of Nevada. The population was 421,407 at the 2010 census. Its county seat is Reno. Washoe County includes the Reno-Sparks metropolitan area.-History:...
(which includes Reno
Reno, Nevada
Reno is the county seat of Washoe County, Nevada, United States. The city has a population of about 220,500 and is the most populous Nevada city outside of the Las Vegas metropolitan area...
), the sales tax rate is 7.725%, due to county option rates for flood control, the ReTRAC train trench project, mass transit, and an additional county rate approved under the Local Government Tax Act of 1991.
For travelers to Las Vegas, note that the lodging tax rate in unincorporated Clark County, which includes the Las Vegas Strip
Las Vegas Strip
The Las Vegas Strip is an approximately stretch of Las Vegas Boulevard in Clark County, Nevada; adjacent to, but outside the city limits of Las Vegas proper. The Strip lies within the unincorporated townships of Paradise and Winchester...
, is 12%. Within the boundaries of the cities of Las Vegas and Henderson
Henderson, Nevada
-Demographics:According to the 2000 census, there were 175,381 people, 66,331 households, and 47,095 families residing in the city. The population density was 2,200.8 people per square mile . There were 71,149 housing units at an average density of 892.8 per square mile...
, the lodging tax rate is 13%.
New Hampshire
Sales tax in New Hampshire is limited to a 9% tax on prepared meals, 9% on hotel and similar room rental for less than 185 days, 9% on motor vehicle rentals, and 7% on telecommunications services. A 1.5% transfer tax is levied on real estate sales. Taxable meals exclude food and beverages for consumption off premises, but catered and restaurant meals are taxable.New Hampshire also imposes excise taxes on gasoline tax at $0.196 per gallon, cigarettes at $1.78 per pack, beer at $0.30 per gallon, and electricity at $0.55 per megawatt-hour.
New Jersey
The state of New JerseyNew Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
's sales and use tax rate is 7%. However, there are exceptions to this statewide rate. In Urban Enterprise Zone
Urban Enterprise Zone
In the United States, Urban Enterprise Zones , also known as Enterprise Zones, are intended to encourage development in blighted neighborhoods through tax and regulatory relief to entrepreneurs and investors who launch businesses in the area. UEZs are areas where companies can locate free of...
s, UEZ-impacted business districts, and in Salem County
Salem County, New Jersey
-Demographics:As of the census of 2000, there were 64,285 people, 24,295 households, and 17,370 families residing in the county. The population density was 190 people per square mile . There were 26,158 housing units at an average density of 77 per square mile...
, sales tax may be charged at 3.5% (50% of the regular rate) on certain items. In addition, local sales taxes are imposed on sales of certain items sold in Atlantic City
Atlantic City, New Jersey
Atlantic City is a city in Atlantic County, New Jersey, United States, and a nationally renowned resort city for gambling, shopping and fine dining. The city also served as the inspiration for the American version of the board game Monopoly. Atlantic City is located on Absecon Island on the coast...
and Cape May County
Cape May County, New Jersey
-Climate:Being the southernmost point in New Jersey, Cape May has fairly mild wintertime temperatures. Contrary to that, the summertime has lower temperatures than most places in the state, making the county a popular place to escape the heat. It is in zone 7a/7b, which is the same as parts of...
. For additional information, see Tax Topic Bulletin S&U-4, New Jersey Sales Tax Guide, available at: http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf
A full list of Urban Enterprise Zones is available on the State of New Jersey web site.
New Jersey does not charge sales tax on unprepared food (except certain sweets and pet food), household paper products, medicine, and clothing. New Jersey does not charge sales tax on goods purchased for resale or on capital improvements but does charge sales tax on certain services. See the NJ Division of Taxation website at: http://www.state.nj.us/treasury/taxation/su.shtml
New Jersey does not charge sales tax on gasoline, but gasoline is subject to a $0.145/gallon excise tax.
Sales of clothing and accessories that are made of fur from the hide or pelt of an animal that is valued at $500 or more are subject to a 6% Fur Clothing Gross Receipts Tax.
New Mexico
New Mexico imposes a gross receipts taxGross receipts tax
A gross receipts tax or gross excise tax is a tax on the total gross revenues of a company, regardless of their source. A gross receipts tax is similar to a sales tax, but it is levied on the seller of goods or service consumers...
of 5% on most retail sales or leasing of property or performance of services in New Mexico. The tax is imposed on the seller but it is common for the seller to pass the tax on to the purchaser. The state rate is 5.125%. Municipalities may assess an additional gross receipts tax, resulting in rates between 5.375% and 8.8625%. Numerous specific exemptions and deductions apply.
New York
New YorkNew York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
has a 4% state sales tax. All counties and some cities add local taxes ranging from 3% to 4.75%. The combined sales tax in Utica
Utica, New York
Utica is a city in and the county seat of Oneida County, New York, United States. The population was 62,235 at the 2010 census, an increase of 2.6% from the 2000 census....
, for example, is 8.75%. In New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, total sales tax is 8.875%, which includes 0.375% charged for the service of the Metropolitan Transportation Authority
Metropolitan Transportation Authority (New York)
The Metropolitan Transportation Authority of the State of New York is a public benefit corporation responsible for public transportation in the U.S...
.
As of September 1, 2007, New York State eliminated sales tax on all clothing and shoes if the single item is priced under $110. Most counties and cities have not eliminated their local sales taxes on clothing and shoes. There are however, 5 cities (most notably New York City) and 11 counties (not counting the counties which make up New York City: New York
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
, Queens
Queens
Queens is the easternmost of the five boroughs of New York City. The largest borough in area and the second-largest in population, it is coextensive with Queens County, an administrative division of New York state, in the United States....
, Kings
Brooklyn
Brooklyn is the most populous of New York City's five boroughs, with nearly 2.6 million residents, and the second-largest in area. Since 1896, Brooklyn has had the same boundaries as Kings County, which is now the most populous county in New York State and the second-most densely populated...
, Richmond
Staten Island
Staten Island is a borough of New York City, New York, United States, located in the southwest part of the city. Staten Island is separated from New Jersey by the Arthur Kill and the Kill Van Kull, and from the rest of New York by New York Bay...
, and Bronx
The Bronx
The Bronx is the northernmost of the five boroughs of New York City. It is also known as Bronx County, the last of the 62 counties of New York State to be incorporated...
counties) that have done so. The counties where the year-round exemption will apply include Broome
Broome County, New York
Broome County is a county located in the U.S. state of New York. As of the 2010 census, the population was 200,600. It was named in honor of John Broome, who was lieutenant governor in 1806 when Broome County was established. Its county seat is Binghamton, which is also its major city. The current...
, Chautauqua
Chautauqua County, New York
-Major highways:* Interstate 86/New York State Route 17 * Interstate 90 * U.S. Route 20* U.S. Route 62* New York State Route 5* New York State Route 39* New York State Route 60* New York State Route 394...
, Chenango
Chenango County, New York
Chenango County is a county located in the U.S. state of New York. As of the 2010 census, the population was 50,477. The county's name originates from an Oneida word meaning "large bull-thistle." Its county seat is Norwich.-History:...
, Columbia
Columbia County, New York
Columbia County is a county located in the U.S. state of New York. As of the 2010 census, the population was 63,096. The county seat is Hudson. The name comes from the Latin feminine form of the name of Christopher Columbus, which was at the time of the formation of the county a popular proposal...
, Delaware
Delaware County, New York
Delaware County is a county located in the U.S. state of New York. As of 2010 the population was 47,980. The county seat is Delhi. It is named after the Delaware River, which was named in honor of Thomas West, 3rd Baron De La Warr, appointed governor of Virginia in 1609.-History:When counties...
, Dutchess
Dutchess County, New York
Dutchess County is a county located in the U.S. state of New York, in the state's Mid-Hudson Region of the Hudson Valley. The 2010 census lists the population as 297,488...
, Greene
Greene County, New York
Greene County is a county located in the U.S. state of New York. Its name is in honor of the American Revolutionary War general Nathanael Greene. Its county seat is Catskill...
, Hamilton
Hamilton County, New York
Hamilton County is a county located in the U.S. state of New York. It is named after Alexander Hamilton, the only member of the New York State delegation who signed the United States Constitution in 1787 and later the first United States Secretary of the Treasury. Its county seat is Lake Pleasant...
, Madison
Madison County, New York
Madison County is a county located in the U.S. state of New York. As of the 2010 census, the population was 73,442. It is named after James Madison, fourth President of the United States of America...
(outside the city of Oneida
Oneida, New York
Oneida is a city in Madison County located west of Oneida Castle and east of Canastota, New York, United States. The population was 10,987 at the 2000 census. The city, like both Oneida County and the nearby silver and china maker, takes its name from the Oneida tribe...
), Rensselaer
Rensselaer County, New York
Rensselaer County is a county in the U.S. state of New York. As of the 2010 census, the population was 159,429. Its name is in honor of the family of Kiliaen van Rensselaer, the original Dutch owner of the land in the area. Its county seat is Troy...
, Tioga
Tioga County, New York
As of the census of 2010, there were 51,125 people residing in the county, with 22,203 housing units, of these 20,350 occupied, 1,853 vacant. The population density was 98 people per square mile...
, and Wayne
Wayne County, New York
Wayne County is a county located in the US state of New York. It is part of the Rochester, New York Metropolitan Statistical Area and lies on the south shore of Lake Ontario, forming part of the northern border of the United States with Canada. The name honors General Anthony Wayne, an American...
. The cities where the year-round exemption will apply include Binghamton
Binghamton, New York
Binghamton is a city in the Southern Tier of New York in the United States. It is near the Pennsylvania border, in a bowl-shaped valley at the confluence of the Susquehanna and Chenango Rivers...
, Gloversville
Gloversville, New York
Gloversville is a city in Fulton County, New York, that was once the hub of America's glovemaking industry with over two hundred manufacturers in Gloversville and Johnstown. In 2000, Gloversville had a population of 15,413. Ten years later, the population had increased to 15,665- History :The...
, New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, Norwich
Norwich (city), New York
Norwich is a city in Chenango County, New York, United States. Surrounded on all sides by the Town of Norwich, the city is the county seat of Chenango County. The name is taken from Norwich, Connecticut. Its population was 7,355 at the 2000 census.Lt...
, Olean
Olean, New York
Olean is a city in Cattaraugus County, New York, United States. Olean is the largest city in Cattaraugus County, and serves as the financial, business, transportation and entertainment center of the county. It is one of the principal cities of the Southern Tier region of New York.The city is...
, and Sherrill
Sherrill, New York
Sherrill is a city in Oneida County, New York, United States. With a population of 3,147 , it is the least populous city in the state. Sherill is located at the western end of the Town of Vernon on Route 5. Sherrill is referred to as The Silver City.-History:Sherrill was founded in 1916 through a...
. New York also exempts college textbooks from sales tax.
As of June 1, 2008, when products are purchased online and shipped into New York State, some retailers must charge the tax amount appropriate to the locality where the goods are shipped, and in addition, must also charge the appropriate tax on the cost of shipping and handling. The measure states that any online retailer that generates more than $10,000 in sales via in-state sales affiliates must collect New York sales tax. The cumulative gross receipts from sales to New York customers as a result of referrals by all of the seller’s resident representatives total more than $10,000 during the preceding four quarterly sales tax periods.
Effective October 1, 2010 and lasting through March 31, 2011, statewide sales and use tax exemption for clothing and footwear sold for less than $110 will be eliminated. For New York City, this means article of clothing costing less than $110 will now be charged 4.375% tax. A state sales tax exemption for clothing and footwear under $55 will be reinstated from April 1, 2011 through March 31, 2012. The original ($110) exemption will be reinstated after March 31, 2012.
North Carolina
North CarolinaNorth Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
has a state-levied sales tax of 4.75%, effective July 1, 2011, with most counties adding an additional 2% tax, for a total tax of 6.75% in 92 of the 100 counties. Mecklenburg County
Mecklenburg County, North Carolina
-Air:The county's primary commercial aviation airport is Charlotte Douglas International Airport in Charlotte.- Intercity rail :With twenty-five freight trains a day, Mecklenburg is a freight railroad transportation center, largely due to its place on the NS main line between Washington and Atlanta...
levies an additional 0.5% tax, which is directed towards funding the light rail system
LYNX Rapid Transit Services
Lynx Rapid Transit Services comprises a light rail line serviced by the Charlotte Area Transit System in Charlotte, North Carolina, United States...
, for a total of 7.25% and the sales tax in a few other counties is 7%.
There is a 30.2¢ tax per gallon on gas
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
, a 45¢ tax per pack of cigarettes, a 79¢ tax per gallon on wine, and a 53¢ tax per gallon on beer. Most non-prepared food purchases are taxed at a reduced rate of 2%. Candy, soft drinks, and prepared foods are taxed at the full combined 7.75%-8.25% rate, with some counties levying an additional 1% tax on prepared foods. For the benefit of back-to-school shoppers, there is a sales tax holiday on the first Friday in August through the following Sunday which includes school supplies, school instructional materials, clothing, footwear, sports and recreation equipment, and computers and computer accessories.
North Dakota
North DakotaNorth Dakota
North Dakota is a state located in the Midwestern region of the United States of America, along the Canadian border. The state is bordered by Canada to the north, Minnesota to the east, South Dakota to the south and Montana to the west. North Dakota is the 19th-largest state by area in the U.S....
has a 5% state sales tax for general sales, but varies depending on the category (5%, 7%, 3% and 2%). These additional taxes increase the total general sales tax rates to 7.5% in Valley City
Valley City, North Dakota
As of the census of 2000, there were 6,826 people, 2,996 households, and 1,668 families residing in the city. The population density was 2,062.5 per square mile . There were 3,250 housing units at an average density of 982.0 per square mile...
and Pembina
Pembina, North Dakota
Pembina is a city in Pembina County, North Dakota in the United States. The population was 592 at the 2010 census.The area of Pembina was long inhabited by various indigenous peoples...
; 7.25% in Grafton
Grafton, North Dakota
-Education:The city of Grafton is served by the Grafton Public Schools system. The system includes Century Elementary School , Central Middle School , and Grafton High School .-Library:...
; 7.0% in Fargo
Fargo, North Dakota
Fargo is the largest city in the U.S. state of North Dakota and the county seat of Cass County. In 2010, its population was 105,549, and it had an estimated metropolitan population of 208,777...
and Minot
Minot, North Dakota
Minot is a city located in north central North Dakota in the United States. It is most widely known for the Air Force base located approximately 15 miles north of the city. With a population of 40,888 at the 2010 census, Minot is the fourth largest city in the state...
; 6.75% in Grand Forks
Grand Forks, North Dakota
Grand Forks is the third-largest city in the U.S. state of North Dakota and the county seat of Grand Forks County. According to the 2010 census, the city's population was 52,838, while that of the city and surrounding metropolitan area was 98,461...
; 6.5 in Dickinson
Dickinson, North Dakota
As of the census of 2000, there were 16,010 people, 6,517 households, and 4,020 families residing in the city. The population density was 1,690.7 inhabitants per square mile . There were 7,033 housing units at an average density of 742.7 per square mile...
; and 6.0% in Bismarck
Bismarck, North Dakota
Bismarck is the capital of the U.S. state of North Dakota and the county seat of Burleigh County. It is the second most populous city in North Dakota after Fargo. The city's population was 61,272 at the 2010 census, while its metropolitan population was 108,779...
, West Fargo
West Fargo, North Dakota
As of the census of 2000, there were 14,940 people, 5,771 households, and 4,091 families residing in the city, however the current population of West Fargo is estimated at over 26,000 residents. The population density was 2,049.2 per square mile . There were 5,968 housing units at an average...
and Mandan
Mandan, North Dakota
As of the census of 2000, there were 16,718 people, 6,647 households, and 4,553 families residing in the city. The population density was 1,642.8 per square mile . There were 6,958 housing units at an average density of 683.7 per square mile...
.
Ohio
OhioOhio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
has a 5.5% state sales tax. Counties may levy a permissive sales tax of from 0.25% up to 1.5% and transit authorities, mass transit districts usually centered on one primary county, may levy a sales tax of from 0.25% up to 1.5%. Cuyahoga County
Cuyahoga County, Ohio
Cuyahoga County is a county located in the state of Ohio, United States. It is the most populous county in Ohio; as of the 2010 census, the population was 1,280,122. Its county seat is Cleveland. Cuyahoga County is part of Greater Cleveland, a metropolitan area, and Northeast Ohio, a...
has the highest sales tax of 7.75%. Tax increments may not be less than 0.25%, and the total tax rate, including the state rate, may not exceed 8.5%. County permissive taxes may be levied by emergency resolution of the county boards of commissioners. Transit authority taxes must and county permissive taxes may be levied by a vote of the electors of the district or county. Shipping and handling charges are also taxable. Ohio law requires virtually every type of business to obtain a Ohio Sales Tax Certificate Number. If you sell goods on eBay or the internet and ship them to someone in the state you reside, then you must collect sales tax from the buyer and pay the collected tax to your state on a monthly or quarterly basis. If you sell less than $4 million in annual sales, you do not have to collect or pay sales tax on out-of-state sales.
Ohio Sales Tax Resale Certificate Example: If you live in Ohio and you sell or ship something to someone else in Ohio, then you must collect and pay sales tax to the State of Ohio. But if you sell the same item to someone outside the State of Ohio, you need not charge sales tax, but must report the exempt tax sale to the State of Ohio. Ohio also has a gross receipts tax
Gross receipts tax
A gross receipts tax or gross excise tax is a tax on the total gross revenues of a company, regardless of their source. A gross receipts tax is similar to a sales tax, but it is levied on the seller of goods or service consumers...
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 the full 7%.
Oklahoma
OklahomaOklahoma
Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...
has a 4.5% sales tax rate. Cities have an additional sales tax which varies, but is generally 3-4% resulting in a total sales tax rate of 7.5% to 8.5%.
Oregon
OregonOregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
has no statewide sales tax, although local municipalities may impose sales taxes if they choose to do so, such as Ashland, which imposes a 5% prepared food tax.
Pennsylvania
PennsylvaniaPennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
has a 6% sales tax rate. Allegheny County
Allegheny County, Pennsylvania
Allegheny County is a county in the southwestern part of the U.S. state of Pennsylvania. As of the 2010 census, the population was 1,223,348; making it the second most populous county in Pennsylvania, following Philadelphia County. The county seat is Pittsburgh...
has local sales tax of 1% on top of the PA sales tax rate that totals 7%. Philadelphia County
Philadelphia County, Pennsylvania
-History:Tribes of Lenape were the first known occupants in the area which became Philadelphia County. The first European settlers were Swedes and Finns who arrived in 1638. The Netherlands seized the area in 1655, but permanently lost control to England in 1674...
has a local sales tax of 2% on top of the PA sales tax rate that totals 8%, which became effective October 8, 2009.
Food, most clothing, and footwear are among the items most frequently exempted. However, taxed food items include soft drink
Soft drink
A soft drink is a non-alcoholic beverage that typically contains water , a sweetener, and a flavoring agent...
s and powdered mixes, sports drink
Sports drink
A sports drink beverage is designed to help athletes rehydrate when fluids are depleted after training or competition. Electrolyte replacement promotes proper rehydration, which is important in delaying the onset of fatigue during exercise...
s, hot beverages, hot prepared foods, sandwich
Sandwich
A sandwich is a food item, typically consisting of two or more slices of :bread with one or more fillings between them, or one slice of bread with a topping or toppings, commonly called an open sandwich. Sandwiches are a widely popular type of lunch food, typically taken to work or school, or...
es, and salad bar
Salad bar
A salad bar is a buffet-style table or counter at a restaurant or food market on which salad components are provided for customers to assemble their own salad plates...
meals, unless these items are purchased with food stamps. Additionally, catering and delivery fees are taxed if the food itself is taxed.
Additional exemptions include internet service, newspaper
Newspaper
A newspaper is a scheduled publication containing news of current events, informative articles, diverse features and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. By 2007, there were 6580 daily newspapers in the world selling 395 million copies a...
s, textbook
Textbook
A textbook or coursebook is a manual of instruction in any branch of study. Textbooks are produced according to the demands of educational institutions...
s, disposable diaper
Diaper
A nappy or a diaper is a kind of pant that allows one to defecate or urinate on oneself discreetly. When diapers become soiled, they require changing; this process is often performed by a second person such as a parent or caregiver...
s, feminine hygiene
Feminine hygiene
Feminine hygiene is a general euphemism used to describe personal care products used by women during menstruation, vaginal discharge, and other bodily functions related to the vulva...
products, toilet paper
Toilet paper
Toilet paper is a soft paper product used to maintain personal hygiene after human defecation or urination. However, it can also be used for other purposes such as blowing one's nose when one has a cold or absorbing common spills around the house, although paper towels are more used for the latter...
, wet wipe
Wet wipe
A wet wipe, also known as a wet nap, wet towel, or a moist towelette, is a small moistened piece of paper or cloth that often comes folded and individually wrapped for convenience...
s, prescription drug
Prescription drug
A prescription medication is a licensed medicine that is regulated by legislation to require a medical prescription before it can be obtained. The term is used to distinguish it from over-the-counter drugs which can be obtained without a prescription...
s, many over-the-counter drug
Over-the-counter drug
Over-the-counter drugs are medicines that may be sold directly to a consumer without a prescription from a healthcare professional, as compared to prescription drugs, which may be sold only to consumers possessing a valid prescription...
s and supplies, oral hygiene
Oral hygiene
Teeth cleaning is part of oral hygiene and involves the removal of dental plaque from teeth with the intention of preventing cavities , gingivitis, and periodontal disease. People routinely clean their own teeth by brushing and interdental cleaning, and dental hygienists can remove hardened...
items (including toothbrush
Toothbrush
The toothbrush is an oral hygiene instrument used to clean the teeth and gums that consists of a head of tightly clustered bristles mounted on a handle, which facilitates the cleansing of hard-to-reach areas of the mouth. Toothpaste, which often contains fluoride, is commonly used in conjunction...
es and toothpaste
Toothpaste
Toothpaste is a paste or gel dentifrice used with a toothbrush as an accessory to clean and maintain the aesthetics and health of teeth. Toothpaste is used to promote oral hygiene: it serves as an abrasive that aids in removing the dental plaque and food from the teeth, assists in suppressing...
), contact lens
Contact lens
A contact lens, or simply contact, is a lens placed on the eye. They are considered medical devices and can be worn to correct vision, for cosmetic or therapeutic reasons. In 2004, it was estimated that 125 million people use contact lenses worldwide, including 28 to 38 million in the United...
es and eyeglasses
Glasses
Glasses, also known as eyeglasses , spectacles or simply specs , are frames bearing lenses worn in front of the eyes. They are normally used for vision correction or eye protection. Safety glasses are a kind of eye protection against flying debris or against visible and near visible light or...
, health club
Health club
A health club is a place which houses exercise equipment for the purpose of physical exercise.-Main workout area:...
and tanning booth
Tanning booth
A tanning booth is a device that emits ultraviolet radiation, usually for the purpose of a cosmetic tan. They are very similar to a tanning bed, but the design is such that it is intended to be used while standing up, rather than lying down....
fees, burial items (like coffin
Coffin
A coffin is a funerary box used in the display and containment of dead people – either for burial or cremation.Contemporary North American English makes a distinction between "coffin", which is generally understood to denote a funerary box having six sides in plan view, and "casket", which...
s, urn
Urn
An urn is a vase, ordinarily covered, that usually has a narrowed neck above a footed pedestal. "Knife urns" placed on pedestals flanking a dining-room sideboard were an English innovation for high-style dining rooms of the late 1760s...
s, and headstone
Headstone
A headstone, tombstone, or gravestone is a marker, usually stone, that is placed over a grave. In most cases they have the deceased's name, date of birth, and date of death inscribed on them, along with a personal message, or prayer.- Use :...
s), personal protective equipment
Personal protective equipment
Personal protective equipment refers to protective clothing, helmets, goggles, or other garment or equipment designed to protect the wearer's body from injury by blunt impacts, electrical hazards, heat, chemicals, and infection, for job-related occupational safety and health purposes, and in...
for production personnel, work uniform
Uniform
A uniform is a set of standard clothing worn by members of an organization while participating in that organization's activity. Modern uniforms are worn by armed forces and paramilitary organizations such as police, emergency services, security guards, in some workplaces and schools and by inmates...
s, veterinary
Veterinarian
A veterinary physician, colloquially called a vet, shortened from veterinarian or veterinary surgeon , is a professional who treats disease, disorder and injury in animals....
services, pet medications, fuel
Fuel
Fuel is any material that stores energy that can later be extracted to perform mechanical work in a controlled manner. Most fuels used by humans undergo combustion, a redox reaction in which a combustible substance releases energy after it ignites and reacts with the oxygen in the air...
for residential use (including coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
, firewood
Firewood
Firewood is any wood-like material that is gathered and used for fuel. Generally, firewood is not highly processed and is in some sort of recognizable log or branch form....
, fuel oil
Fuel oil
Fuel oil is a fraction obtained from petroleum distillation, either as a distillate or a residue. Broadly speaking, fuel oil is any liquid petroleum product that is burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power, except oils having a flash...
, natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, wood pellets
Wood pellets
Wood pellets are a type of wood fuel, generally made from compacted sawdust or other wastes from sawmilling and other wood products manufacture, but also sometimes from sources such as whole-tree removal or tree tops and branches leftover after logging and which otherwise help replenish soil...
, steam
Steam
Steam is the technical term for water vapor, the gaseous phase of water, which is formed when water boils. In common language it is often used to refer to the visible mist of water droplets formed as this water vapor condenses in the presence of cooler air...
, and electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
), many farm
Farm
A farm is an area of land, or, for aquaculture, lake, river or sea, including various structures, devoted primarily to the practice of producing and managing food , fibres and, increasingly, fuel. It is the basic production facility in food production. Farms may be owned and operated by a single...
ing supplies and equipment, ice
Ice
Ice is water frozen into the solid state. Usually ice is the phase known as ice Ih, which is the most abundant of the varying solid phases on the Earth's surface. It can appear transparent or opaque bluish-white color, depending on the presence of impurities or air inclusions...
, and tea (including powdered, hot, cold, and flavored).
The taxability of alcoholic beverages is slightly complicated. In Pennsylvania, alcohol is sold to businesses and consumers through the Pennsylvania Liquor Control Board
Pennsylvania Liquor Control Board
The Pennsylvania Liquor Control Board is an independent government agency that manages the beverage alcohol industry in Pennsylvania. It is responsible for licensing the possession, sale, storage, transportation, importation, and manufacture of wine, spirits, and malt or brewed beverages in the...
(PLCB). The PLCB always charges sales tax directly to the purchasing entity. Therefore, if a consumer purchases alcohol in PLCB stores, the sales tax is assessed at the point of purchase, but if a consumer purchases alcohol at a licensed business (such as a bar or restaurant), the sales tax is not applied because it had already been paid when the business purchased the alcohol from the PLCB. The PLCB charges an additional 18% levy on liquor and wine, but this tax is always included in the price regardless of the purchasing location. Beer is subject to an excise of $0.08 per gallon.
Puerto Rico
Puerto RicoPuerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...
has a 5.5% commonwealth sales tax that applies to both products and services with few exemptions (including items such as unprocessed foods, prescription medicines and business-to-business services). Additionally, most municipalities have a city sales tax of 1.5% for a total of 7%. Some items that are exempt from commonwealth sales tax, specifically unprocessed foods, may still be subject to the city sales tax in the municipalities.
Rhode Island
Rhode IslandRhode Island
The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...
has a state sales tax of 7%. The rate was raised from 5% to 6% as a temporary measure in the 1970s, but has not since been lowered. Rhode Island raised its sales tax from 6% to 7% in the early 1990s to pay for the bailout of the state's failed credit unions. The change was initially proposed as a temporary measure, but was later made permanent. Other taxes may also apply, such as the state's 1% restaurant tax. Many items are exempt from the state sales tax, e.g., food (excluding single serve items), prescription drugs, clothing and footwear, newspapers, coffins, and original artwork.
South Carolina
South CarolinaSouth Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
has a 6% state sales tax but when combined with local, county and hospitality taxes South Carolina has a maximum sales tax of 10.5%.
In Charleston
Charleston, South Carolina
Charleston is the second largest city in the U.S. state of South Carolina. It was made the county seat of Charleston County in 1901 when Charleston County was founded. The city's original name was Charles Towne in 1670, and it moved to its present location from a location on the west bank of the...
, the tax rate equals 10.5% with state tax, county tax, local option tax, and the hospitality tax. The City of Myrtle Beach
Myrtle Beach, South Carolina
Myrtle Beach is a coastal city on the east coast of the United States in Horry County, South Carolina. It is situated on the center of a large and continuous stretch of beach known as the Grand Strand in northeastern South Carolina. It is considered to be a major tourist destination in the...
states that mixed liquor drinks can have taxes added as high as 16.5%.
As of June 1, 2007 counties and some cities may impose an additional 1% to 3% sales tax. As of mid-2005, 35 of 46 counties do so. Restaurants may also charge an extra 1-2% tax on prepared food (fast food or take-out) in some places. The state's sales tax on unprepared food disappeared completely November 1, 2007. There is a cap of $300 on sales tax for most vehicles.
Additionally, signs posted in many places of business inform that South Carolina residents over the age of 85 are entitled to a 1% reduction in sales tax.
For the benefit of back-to-school shoppers, there is a sales tax holiday on the first Friday in August through the following Sunday which includes school supplies, school instructional materials, clothing, footwear, sports and recreation equipment, and computers and computer accessories.
South Dakota
South DakotaSouth Dakota
South Dakota is a state located in the Midwestern region of the United States. It is named after the Lakota and Dakota Sioux American Indian tribes. Once a part of Dakota Territory, South Dakota became a state on November 2, 1889. The state has an area of and an estimated population of just over...
has a 4% state sales tax, plus any additional local taxes. An additional 1.5% sales tax is added during the summer season on sales occurring in tourism-related businesses and dedicated to the state's office of tourism.
City governments are allowed a maximum of 2% sales tax for use by the local government. Tribal governments are allowed to charge a higher local government tax rate, as they have a special agreement with the State of South Dakota.
While city governments are not restricted to a 2% tax, they can impose a gross receipts tax on things like lodging, alcohol, restaurants, and admissions. These gross receipts are passed on by the business as a tax and could be considered a sales tax.
Tennessee
TennesseeTennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...
charges 5.5% sales tax on groceries as of January 1, 2008, and 7% on other items. Counties also tax up to 2.75% in increments of 0.25% — most do so around 2.25% = the majority of TN taxpayers pay 9.75%. If a county does not charge the maximum, its cities can charge and keep all or part of the remainder. Several cities are in more than one county, but none charge a city tax, thus paying only the county taxes.
Texas
The TexasTexas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
state sales and use tax rate is 6.25%, but local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities, but specifically not including school districts) may also impose sales and use taxes up to 2% for a total of 8.25%. The main items exempt from sales tax include medicines (prescription and over-the-counter), food and food seeds (but prepared food, such as from a restaurant, is subject to sales tax).
Motor vehicle and boat sales are taxed at only the 6.25% state rate; there is no local sales and use tax on these items. In addition, a motor vehicle or boat purchased outside the state is assessed a use tax at the same rate as one purchased inside the state. The sales tax is calculated on the greater of either the actual purchase price or the "standard presumptive value" of the vehicle, as determined by the state, except for certain purchases (mainly purchases from licensed dealers or from auctions).
Lodging rates are subject to a 6% rate at the state level, with local entities being allowed to charge additional amounts. 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 merchant for collecting the tax from consumers for the state.
Texas provides one sales tax holiday per year (generally in August prior to the start of the school year, running from Friday to Sunday of the designated weekend). Clothing less than $100 (except for certain items, such as golf shoes) and school supplies are exempt from all sales tax (state and local) on this one weekend only. There has also been talks of a tax free weekend in December to help with the Holiday shopping season.
Utah
UtahUtah
Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...
has a 4.7% state sales tax. Additionally, local taxing authorities can impose their own sales tax. Currently the majority of Utah's aggregate sales taxes are in the range of 5.95% - 8.35%. Utah has a 16.350% sales tax on rental cars in Salt Lake City.
4.7 is usually for food sales.
Vermont
VermontVermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...
has a 6% sales tax. The following jurisdictions have an additional 1% Local Option Sales Tax: Burlington
Burlington, Vermont
Burlington is the largest city in the U.S. state of Vermont and the shire town of Chittenden County. Burlington lies south of the U.S.-Canadian border and some south of Montreal....
, Dover
Dover, Vermont
Dover is a town in Windham County, Vermont, United States. The population was 1,410 at the 2000 census.-Geography:According to the United States Census Bureau, the town has a total area of 35.3 square miles , all land...
, Killington
Killington, Vermont
Killington is a town in Rutland County, Vermont, United States. The population was 811 at the 2010 census. Killington Ski Resort is located here....
, Manchester, Middlebury, Rutland Town
Rutland (town), Vermont
Rutland is a town in Rutland County, Vermont, United States. The population was 4,054 at the 2010 census. Rutland completely surrounds the city of Rutland, which is incorporated separately from the town of Rutland.-History:...
, South Burlington
South Burlington, Vermont
-Economy:CommutAir, a regional airline, is headquartered in the city, by the airport. The Magic Hat Brewing Company, one of the United States's larger craft breweries, is located here.One measure of economic activity is retail sales...
, Stratton
Stratton, Vermont
Stratton is a town in Windham County, Vermont, United States. The population was 136 at the 2000 census.Stratton was one of thirteen Vermont towns isolated by flooding caused by Hurricane Irene in 2011.-Geography:...
, Williston
Williston, Vermont
Williston is a town in Chittenden County, Vermont, United States. The population was 8,698 at the 2010 census, an increase of over 1,000 people since the 2000 census...
, and Winhall
Winhall, Vermont
Winhall is a town in Bennington County, Vermont, United States. The population was 702 at the 2000 census.-Geography:According to the United States Census Bureau, the town has a total area of 44.0 square miles , of which 43.7 square miles are land and 0.3 square mile is...
. The meal tax is 9% plus a 1% Local Option. Alcoholic beverages are taxed at 10% plus a 1% Local Option.
Virginia
VirginiaVirginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
has a sales tax rate of 5.00% (4% state tax and 1% local tax). Consumers are taxed on every 'eligible food item.' For example, fresh local produce
Produce
Produce is a generalized term for a group of farm-produced goods and, not limited to fruits and vegetables . More specifically, the term "produce" often implies that the products are fresh and generally in the same state as where they were harvested. In supermarkets the term is also used to refer...
sold at farmers markets and grocery stores, or basic, unprepared cold grocery foods, are taxed 2.5% (1.5% state tax and 1% local tax). Cities and counties may also charge an additional "Food and Beverage Tax" on restaurant meals, up to an additional 4% in counties and 6.5% in cities. Virginia also has a tax on alcohol of 11.5%.
Virginia's use tax also applies at the same rate for out of state purchases (food 2.5%, non-food 5%) exceeding $100 per year "from mail order catalogs". Various exemptions include prescription and non-prescription medicine, gasoline, and postage stamps, or the labor portion of vehicle repair. "Cost price" does not include separately stated "shipping" charges but it does include a separate "handling" charge or "shipping and handling" charges if listed as a combined item on the sales invoice. However, unlike Maryland and West Virginia consumer use tax forms, the Virginia CU-7 Consumer Use Tax Form does not recognize that it is possible to be under-taxed in another state and so only addresses untaxed items. Unlike Maryland's quarterly filing, Virginia's CU-7 is due annually between January 1 and May 1 or can be filed optionally instead with Schedule A with Form 760, or Schedule NPY with Form 760PY. As with all states, Virginia has penalties and interest for non-filing, but Virginia's use tax is no more practically enforceable than that of any other state.
Washington
Washington has a 6.5% statewide sales tax. Local rates vary based on an individual's location at the point of purchase. In addition, due to the large number of Native American sovereign nations located within the state, sales-tax rates, if any, can vary based on state treaties with each nation.As of December 2, 2010, sales taxes cannot be applied to unprepared food items and prescription medications. Prepared food, over-the-counter medications, and "medical marijuana" are not exempt from sales tax.
The sale or lease of motor vehicles for use on the road incurs an additional 0.3% tax, rental of a car for less than 30 days has an additional state/local tax of 8.9%. When renting a car for less than 30 days in Seattle, the total sales tax is 18.6%. When purchasing an automobile, if one trades in a car, the state subtracts the price of the trade when calculating the sales tax to be paid on the automobile (e.g., purchasing a $40,000 car, and trading a $20,000 car, a person would be taxed on the difference of $20,000 only, not the full amount of the new vehicle).
When staying at a hotel (60+ rooms capacity) in Seattle, the sales tax is 15.6%. Residents of Canada and U.S. states or possessions (only U.S. and Canadian locations having a sales tax of less than 3%, e.g., Oregon, Alaska, and Alberta
Alberta
Alberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...
) are exempt from sales tax on purchases of tangible personal property
Personal property
Personal property, roughly speaking, is private property that is moveable, as opposed to real property or real estate. In the common law systems personal property may also be called chattels or personalty. In the civil law systems personal property is often called movable property or movables - any...
for use outside the state. Stores at the border will inquire about residency, and exempt qualified purchasers from the tax.
A seller of a house or real estate pays excise taxes on the full sale price. The amount varies by county. In King
King County, Washington
King County is a county located in the U.S. state of Washington. The population in the 2010 census was 1,931,249. King is the most populous county in Washington, and the 14th most populous in the United States....
and Snohomish
Snohomish County, Washington
Snohomish County is a county located in the U.S. state of Washington. It is named after the Snohomish tribe. Since 2000, the county's population has grown from 606,024 to 713,335 residents , making it one of the fastest-growing in the state, ranking third in overall population after King and...
counties, it is up to 1.78%. For example, selling a house for $500,000 will incur a tax of $8,900.
Residents of Washington, who purchase goods for use in Washington, must pay a use tax in lieu of a sales tax, if any one of four conditions is true: If a Washington resident purchases goods and certain services in other states that do not charge a sales tax or charge a sales tax rate less than the sales-tax rate in Washington, or if an out-of-state seller does not collect Washington sales tax, the resident must pay a use tax on all goods that will be used in Washington. Use tax must also be paid if a Washington resident purchases goods from a seller who is not authorized to collect sales tax or if personal property is acquired with the purchase of real property. Washington state does not typically pursue use tax collection for most purchases. However, in 2005, the Washington State Department of Revenue began to make a concerted effort to collect use tax on artworks acquired in other states.
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% tax on prepared food and beverages in King County.
April 1, 2008 saw tax increases in King County (+.001), Kittitas County (+.003), Mason County (+.001), and the city of Union Gap
Union Gap, Washington
Union Gap is a city in Yakima County, Washington, in the United States. As of the 2010 census, the city population was 6,047.-History:The city of Union Gap was originally named Yakima and was officially incorporated on November 23, 1883...
(+.002).
On July 1, 2008, Washington stopped charging an origin-based sales tax, and started charging a destination-based sales tax. This change only applies to transactions beginning and ending within state lines and does not apply to other states. Additionally, Washington started collecting taxes from online retailers that have voluntarily agreed to start collecting the sales tax in return for not being sued for back taxes.
The city of Seattle charges a 10% tax on charges for parking garages to go toward mass transit. Total tax at parking garages is now 19.5%. This rate was set to go up to 12.5% on 1 January 2011, making the parking tax total 22%.
On November 4, 2008, voters in King County (Seattle) approved a 0.5% increase in the sales tax. Taxes within the city were increased to 9.5% on retail purchases. This increase was supposed to be effective January 1, 2009, but was pushed back until April 2009. (For the first quarter of 2009, the tax rate in Seattle was 9%.)
Midterm elections that occurred on November 2, 2010, saw sweeping voter-enacted tax changes with the passage of Initiative 1107. The initiative repealed all taxes levied on candy, gum, snack foods, carbonated beverages, and bottled water that had been imposed by the state legislature on June 1, 2010. Initiative 1107 also lowered the B&O tax on food products that contain meat. The Department of Revenue stated that all tax rollbacks were to take effect on December 2, 2010, directing retailers to stop collecting the sales tax at that time. The language of the initiative did not order the state to refund any tax that had been previously collected.
West Virginia
West VirginiaWest Virginia
West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east...
has the distinction of being the first US state to enact a sales tax. It currently stands at 6%. The sales tax on food currently stands at 3%. Effective January 1, 2006, the sales tax on food was lowered to 5%, and on July 1, 2007, it was lowered further to 4%. The sales tax on food was again lowered to 3% on July 1, 2008. However, the reduced rate of tax does not apply to sales, purchases and uses by consumers of prepared food. Prescription drugs are not subject to sales tax. Credit is allowed for sales or use taxes paid to another state with respect to the purchase.
An individual who titles a motor vehicle with the West Virginia Division of Motor Vehicles must pay a $10.00 title fee and a 5 percent title privilege tax (rather than the 6 percent sales tax). For vehicles purchased new by West Virginia residents, the measure of this tax is the net sales price of the vehicle. For used vehicles, and for vehicles previously titled in other states, the tax is measured by the National Automobile Dealers Association
National Automobile Dealers Association
The National Automobile Dealers Association, founded in 1917, represents nearly 17,000 new-car and truck dealers, both domestic and international, with about 37,500 separate franchises...
book value of the vehicle at the time of registration. No credit is issued for any taxes paid to another state. Trailers, motorboats, all-terrain vehicles and snowmobiles are also subject to this tax. As of June 7, 2007, new residents of West Virginia no longer have to pay the 5 percent title privilege tax on vehicles, as long as the vehicles were validly titled to the same owner outside the state.
West Virginia is a member of the Streamlined Sales Tax Project
Streamlined sales tax project
Organized in March 2000, the Streamlined Sales Tax Project objective is to simplify and modernize sales and use tax collection and administration in the United States. It arose in response to efforts by Congress to permanently prohibit states from collecting sales taxes on online commerce...
. The streamlined sales tax agreement has effected significant in-state tax changes. West Virginia's Energy Star Sales Tax Free Holiday was inspired by similar holidays in other states. The reduction of the food tax was similarly influenced. West Virginia adopted the definition of food found in the Streamlined Sales Tax Agreement in deciding what food is subject to preferential tax rates.
Wisconsin
WisconsinWisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
has a 5% state sales tax, with 62 of the 72 counties charging an extra 0.5% "County Tax".
The state instituted a 0.1% sales tax in five counties (Milwaukee, Ozaukee, Racine, Washington, Waukesha
Waukesha County, Wisconsin
Waukesha County is a county in the U.S. state of Wisconsin. As of 2008, the population was 380,629. Its county seat is Waukesha.-History:The part of Wisconsin that Waukesha County now occupies was a part of Michigan when Milwaukee County was organized in September 1834. On July 4, 1836, the...
), effective January 1, 1996, to cover the cost of building Miller Park in Milwaukee. The tax was originally scheduled to be retired in 2014, however it is now not expected to collect enough taxes to cover the entire cost until 2017. There had been talk of extending the tax to pay for a new stadium for the Milwaukee Bucks
Milwaukee Bucks
The Milwaukee Bucks are a professional basketball team based in Milwaukee, Wisconsin, United States. They are part of the Central Division of the Eastern Conference in the National Basketball Association . The team was founded in 1968 as an expansion team, and currently plays at the Bradley Center....
, but the plan failed to gain any momentum.
Brown County collects a 0.5% tax for all purchases which funded the remaining cost of a $295 million renovation of Lambeau Field
Lambeau Field
Lambeau Field is an outdoor football stadium in Green Bay, Wisconsin, the home of the NFL's Green Bay Packers. Opened in 1957 as City Stadium, it replaced the original City Stadium as the Packers' home field...
, as well as a payment to the Green Bay Packers
Green Bay Packers
The Green Bay Packers are an American football team based in Green Bay, Wisconsin. They are members of the North Division of the National Football Conference in the National Football League . The Packers are the current NFL champions...
to cover part of the cost of operating and maintaining the stadium through the year 2031. The necessary funds are expected to all be collected by about 2015, when the tax is currently scheduled to end.
The municipalities of Lake Delton
Lake Delton, Wisconsin
Lake Delton is a village located on the Wisconsin River in Sauk County, Wisconsin, United States. As of the 2000 census, the village had a total population of 1,982, but in 2009, it had an estimated population of 3,081 which is a 55.4% increase. It also makes it the largest community in the Dells...
, Wisconsin Dells
Wisconsin Dells, Wisconsin
Wisconsin Dells is a city in south-central Wisconsin, with a population of 2,418 as of the 2000 census. It straddles four counties: Adams, Columbia, Juneau, and Sauk. The city takes its name from the dells of the Wisconsin River, a scenic, glacially formed gorge that features striking sandstone...
, Bayfield
Bayfield, Wisconsin
Bayfield is a city in Bayfield County, Wisconsin, United States. The population was 611 at the 2000 census. The town is named after Henry Bayfield, a British Royal Topographic Engineer who explored the region in 1822-23....
, and Eagle River
Eagle River, Wisconsin
Eagle River is a city in Vilas County, Wisconsin, United States. The population was 1,443 at the 2000 census. It is the county seat of Vilas County. The city is known for being a popular "Northwoods" vacation town...
have also been authorized to adopt an additional 1% sales tax, due to their status as popular tourist destinations.
Milwaukee County also has an additional local exposition tax on hotel rooms, car rentals, and food and beverage, which funds the Wisconsin Center Tax District.
In all cases, prescriptions, most foods (with the exception of candy, dietary supplements, soft drinks, and prepared foods), and newspapers, among other items, are exempt from sales tax, however over-the-counter medications, and certain types of repair and installation services are not tax exempt.
Wyoming
WyomingWyoming
Wyoming is a state in the mountain region of the Western United States. The western two thirds of the state is covered mostly with the mountain ranges and rangelands in the foothills of the Eastern Rocky Mountains, while the eastern third of the state is high elevation prairie known as the High...
has a 4% state sales tax, with counties adding up to an additional 3%, resulting in a maximum rate of 7%. In addition, resort district areas have the option to impose an additional 3% tax. Exemptions include food which is not designed to be consumed on-premises and sales of agricultural equipment. Unlike most states, in Wyoming labor falls under the jurisdiction of sales tax. All labor on both tangible and intangible property are taxable, however labor which permanently modifies real property
Real property
In English Common Law, real property, real estate, realty, or immovable property is any subset of land that has been legally defined and the improvements to it made by human efforts: any buildings, machinery, wells, dams, ponds, mines, canals, roads, various property rights, and so forth...
is exempt.
Value added tax
There is no value added tax in the United States. There have been proposals to replace some Federal taxes with a value added tax.History
"The use of sales taxes by U.S. states dates back at least to the Pennsylvania mercantile license tax that was initially introduced in 1821, though this and other early taxes were not broad-based. Buehler attributes development of modern state sales taxes to the depression era. He credits Kentucky with the first tax levied exclusively on retailers. The initial tax, passed in 1930, was progressive, but was replaced in 1934 with a 3 percent flat rate tax and then was eliminated in 1936. The current Kentucky sales tax was adopted in 1960. Commerce ClearingHouse credits Mississippi with the first sales tax, in 1930. Forty-five states and the District of Columbia currently impose sales taxes (see Table 1). Twenty-four of the states first levied the tax during the 1930s, six in the 1940s, five in the 1950s, and eleven in the 1960s. In 1969, Vermont was the last state to impose a sales tax. Alaska, Delaware, New Hampshire, Montana and Oregon do not levy general sales taxes."See also
- Gross receipts taxGross receipts taxA gross receipts tax or gross excise tax is a tax on the total gross revenues of a company, regardless of their source. A gross receipts tax is similar to a sales tax, but it is levied on the seller of goods or service consumers...
- Income tax in the United StatesIncome tax in the United StatesIn the United States, a tax is imposed on income by the Federal, most states, and many local governments. The income tax is determined by applying a tax rate, which may increase as income increases, to taxable income as defined. Individuals and corporations are directly taxable, and estates and...
- Federal tax revenue by stateFederal tax revenue by stateThis is a table of the total federal tax revenue by state collected by the U.S. Internal Revenue Service in 2007.Gross collections indicates the total federal tax revenue collected by the IRS from each U.S. state, the District of Columbia, and Puerto Rico. The figure includes all individual and...
- Sales taxSales taxA sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
- State income taxState income taxState and local income taxes are imposed in addition to Federal income tax. State income tax is allowed as a deduction in computing Federal income tax, subject to limitations for individuals. Some localities impose an income tax, often based on state income tax calculations. Forty-three states...
- State tax levelsState tax levelsState tax levels indicate both the tax burden and the services a state can afford to provide residents.States use a different combination of sales, income, excise taxes, and user fees, some imposed directly on residents and other imposed indirectly...
- Use taxUse taxA use tax is a type of excise tax levied in the United States. It is assessed upon otherwise "tax free" tangible personal property purchased by a resident of the assessing state for use, storage or consumption of goods in that state , regardless of where the purchase took place...
- Taxation in the United StatesTaxation in the United StatesThe United States is a federal republic with autonomous state and local governments. Taxes are imposed in the United States at each of these levels. These include taxes on income, property, sales, imports, payroll, estates and gifts, as well as various fees.Taxes are imposed on net income of...
- U.S. State Non-resident Withholding TaxU.S. State Non-resident Withholding TaxU.S. State Nonresident Withholding Tax is a mandatory prepayment of tax of individuals or entities that are not resident in the State. A common example of this is the taxation of oil and natural gas royalty interest revenue...
- Federal spending and taxation across statesFederal spending and taxation across statesThe monitoring of federal spending and taxation and its variation between states in the United States began in 1977 under a query run by Daniel Patrick Moynihan, Democratic senator of New York. The query was designed to determine whether the state of New York was paying more in taxes than it was...
- Sales taxes in CanadaSales taxes in CanadaIn Canada, three types of sales taxes are levied. These are as follows:*Provincial sales taxes , levied by the provinces*Goods and Services Tax , a value-added tax levied by the federal government...
External links
- State Sales, Gasoline, Cigarette, and Alcohol Tax Rates by State, Tax Foundation
- State Sales Tax Rates, Federation of Tax Administrators
- State Tax Administration links