Sales tax in the United States are taxes placed on the sale or lease of goods and services in the United States. In the United States, sales taxes are set at the state level and there is no national general sales tax. Forty-five states, the District of Columbia, Puerto Rico, and Guam impose a general sales tax that applies to the sale or lease of most goods and services, and the state may also levy selective sales taxes on the sale or lease of certain goods or services. Countries may also delegate to local governments the authority to impose additional general or selective sales taxes.
Since January 2017, 5 states (Alaska, Delaware, Montana, New Hampshire, and Oregon) do not collect sales taxes across states, while California has the highest state sales tax at a base rate of 7.25%. (Puerto Rican territory has 10.5% higher value added tax since April 2016). In some states such as California, county and city impose additional sales tax, and the total sales tax can be more than 11%.
Sales tax is calculated by multiplying the purchase price by the applicable tax rate. Tax rates vary by jurisdiction and range from less than 1% to more than 10%. Sales taxes are collected by the seller at the time of sale. Tax use is self-assessed by buyers who have not paid sales tax on a taxable purchase. Unlike value added taxes, sales tax is only charged at the retail level. In cases where goods are sold in retail more than once, such as used cars, sales tax may be imposed on the same goods indefinitely.
The definition of retail sales and what goods and services are taxed varies between states. Almost all jurisdictions provide many categories of goods and services that are exempt from sales tax, or taxed at a reduced rate. Purchases of goods for further fabrication or for resale are uniformly exempt from sales tax. Most jurisdictions relieve food sold in grocery stores, prescription drugs, and many agricultural supplies.
Sales taxes, including taxes imposed by local governments, are generally provided at the state level. The state imposes a sales tax either taxing a retail seller, as with the Privilege Tax Transactions in Arizona, or forcing it on a retail buyer and requiring the seller to retrieve it. In both cases, the seller file returns and sends taxes to the state. In the state where the tax is in the seller, the seller usually asks for a reimbursement from the buyer. Procedural rules vary widely. Sellers usually have to levy taxes from buyers in the country unless the buyer provides a release certificate. Most countries allow or require electronic remittances.
Video Sales taxes in the United States
Item kena pajak
Sales tax is only charged on taxable transfers of goods or services. Taxes are calculated as tax rates multiplied by the value of taxable transactions. Rates vary by state, and by region within a state. Not all transfer types may be taxed. Taxes may apply to sales to consumers and businesses.
Sales of taxable
Transfers of tangible personal property for cash or a promise to pay cash (sales) are often subject to sales tax, with the exception. Sales tax does not apply to the transfer of real property, although some countries enact real estate transfers or documentary taxes on such transfers. All countries provide some exceptions from sales tax for wholesale sales, ie sales for resale. However, some countries sell taxes for resale via vending machines.
Gift card purchases are not subject to sales tax in all states. This purchase is considered to be similar to a cash exchange. Sales tax will be billed when the gift card is used as a method of payment for taxable goods or services. There was a proposal in New York State to impose a sales tax when a gift card was purchased instead of forcing it when a card was used, but it failed.
Most states also exclude bulk sales, such as the sale of an entire business. Most countries are exempt from sales tax on purchased goods for use as materials or parts in manufacturing further. Buyers in excluded sales must follow certain procedures or face taxes.
Sales for businesses and consumers are generally taxed in the same way, except as indicated in the preceding paragraph. Businesses do not accept reimbursement for sales tax collection and payment obligations for their own purchases. This differs significantly from value added tax.
The place and manner of sale may affect whether the sale of certain goods may be taxed. Many countries tax food for on-site consumption but do not sell food for outside consumption. The use for which goods are included may also affect whether sales are taxed. Goods used as materials in manufacturing can avoid taxes, in which the same goods used as inventory may not.
Rent
Many countries are renting taxes on real personal property. Often the tax does not depend on the use of the property to be placed. Only Florida imposed sales tax on commercial real estate leases.
Excluded organizations
Many countries free certain charities, religious organizations and other organizations from selling or using taxes on goods purchased for use by the organization. Generally such exceptions do not apply to commerce or business by an organization.
Use tax
A state that imposed a sales tax also imposed a similar tax on a property buyer or a taxable service in cases where the sales tax was not paid. Use taxes functionally equivalent to sales tax. Sale and use of taxes, taken together, "provide a uniform tax on the sale or use of any tangible personal property regardless of where it was purchased." Some countries allow the waivers of sales tax paid in other countries for goods purchased from taxes of use in the taxpayer country.
Taxable value
The amount that sales tax is subject to is generally the net sale price. Such prices are generally after a valid discount.
Some countries free some of the sale or purchase price from taxes for some classes of goods.
Taxable goods
No country imposed sales tax on all types of goods. State laws vary widely about what goods are taxed. Foods for home preparation and consumption are often tax-free, as are prescription drugs. Conversely, restaurant food is often taxed.
Many countries provide exceptions for certain types of goods and not for other types. Certain types of food may be excluded, and certain types may be taxed, even when sold in grocery stores for home consumption. List what goods are taxable and what is not possible much.
Services
Most countries charge tax for some services, and some countries charge a lot of services. However, service taxation is an exception rather than a rule. Some countries charge taxes for the services of doctors, dentists, or lawyers. Services performed in connection with the sale of tangible personal property are often taxed. However, most say, tax services are an integral part of producing goods, such as printing or cabinet making.
Telecommunications services are taxed similar to sales taxes in most states. Only some countries access the internet tax or other information services. Construction services are rarely taxed by the state. The materials used in the construction of real property may be subject to sales tax to builders, subcontractors or persons involved in the builder, or may be entirely exempt from sales tax.
Intangible property
Most sales tax laws do not apply to most payments for intangible properties. Some countries charge taxes on certain forms of transfer or license of intangible property. The general transaction subject to sales tax is the "shrink wrap" software license. State courts often find that many transfers of intangible rights should be deemed to be subject to sales taxes that are not specifically excluded.
Sales for resale
All countries are exempt from sale or use the purchase of goods taxes made for resale in the same form. In many countries, resales include rental of purchased property. Where purchased property is not exactly resold property, the purchase may be taxed. Furthermore, the use of property before sale can beat the resale exemption. Goods purchased for free distribution may be taxed on purchases in some states, and not in other countries.
Goods purchased for use as materials in the manufacture of tangible personal property are generally non-taxable. Food purchases by restaurants are generally not taxed in states that are tax-exempt by restaurants, even though the ingredients change. Steel purchased as part of a machine is generally not taxable. However, supplies consumed by the same business may be taxed. Criteria vary by country.
Purchases of goods to be provided as part of service performance may be taxed. Airlines and hotels may be taxed on the purchase of food to be provided as part of their service, such as meals on board or free breakfast. Where there is a separate charge for these items, they can be considered purchased for resale.
Distinguishing items from nontaxable items
Because service and intangibles are typically tax-free, the difference between tangible property tax sales and unused services or intangible transfers is a major source of controversy. Many state and court tax administrators look to the "right object" or "dominant destination" of a transaction to determine if it is a taxable sale. Some courts have seen the importance of property in relation to the services provided. If the property is sold under an agreement to provide services (such as an extension of the warranty or service contract), the service agreement is generally treated as a separate sale if it can be purchased separately. The Michigan and Colorado courts have adopted a more holistic approach, looking at factors for certain transactions.
Maps Sales taxes in the United States
Exception certificate
Buyers are required to pay sales tax unless they show the seller by certification that the purchase was exempt from tax (release certificate). The certificate must be in a state-approved form. 38 countries have approved the use of the Uniform Sales and Use Tax Certificate of Multistate Tax.
Exceptions are usually divided into two categories: based on usage or by entity. Using an exemption based is when other taxable goods or services are used in a manner that has been deemed to be exempt. The resale exemption is the most common use-based exemption. Other usage-based exclusions may be items or services that will be used in manufacturing, research & amp; development, or teleproduction. Entity-based exclusions are when an item or service is exempt solely because a buyer entered into a category of country has given an exception status. The exempt entity may be a government (federal, state or local), non-profit organization, religious organization, tribal government, or foreign diplomat. Each country decides for themselves that uses entitlement based liberation and they will provide.
Penalty
Persons who are required to apply for a sale or use a tax return that does not submit to a penalty. People who fail to pay sales and use taxes at the right time are also subject to punishment. Penalties tend to be based on the amount of unpaid taxes, and vary according to jurisdiction.
Tax audit
All states that charge sales tax check sales and use tax returns from many taxpayers every year. After the audit, the state may propose an adjustment of the amount of tax to be paid. Taxpayers have certain appeal rights, which differ by jurisdiction. Some states require payment of taxes before a judicial appeal, and some states consider the tax payment in recognition of tax liabilities.
Constitutional Limitations
Under two now defunct Supreme Court decisions, Quill Corp v. North Dakota (1967) and National Bellas Hess v. Illinois (1992), states are not allowed to charge fees. sales taxes on sellers who have no physical presence or "nexus" in the state, such as companies that place mail orders, online shopping, and home shopping over the phone. Some countries make efforts to impose consumer taxes per identical transaction usage instead, but compliance is relatively low due to the difficulty of law enforcement. Decision of June 2018 South Dakota v. Wayfair reverses the interpretation of this Trade Clause, which allows countries to collect sales taxes from merchants outside the country when consumers are in the state.
Some state constitutions impose restrictions on sales tax. These limits limit or prohibit the imposition of tax on certain goods, such as food.
Based on the jurisdiction
The sales tax rate and what taxes vary by jurisdiction. The following table compares the tax on the selected goods class in the state. Other significant differences apply. Following this table is abbreviated as the coverage of the selected sales tax rate by the state.
Summary table
Note:
- These countries impose a food tax but provide income tax credits to compensate poor households: HI, ID, KS, OK, SD, and WY.
- Uniform local taxes are included in the base rate in California & amp; Utah (1.25%), and Virginia (1.0%).
- Unspecified country tax rates can be adjusted each year according to the formula based on balances in unspent public funds and school funding funds.
Alabama
Alabama has a general state sales tax of 4%, plus local municipal and county taxes. By August 2015, the highest total general sales tax rate in Alabama was in the Arab section located in Cullman County, which reached 13.5%. Alabama is one of the few states that do not exclude food from state taxes.
City Tax Rates
- Montgomery has a sales tax of 10%, like Birmingham and Mobile.
- Huntsville has a total sales tax of 9% in most cities in Madison County. The smaller part of Huntsville in Limestone County has a 10.5% sales tax since it is 2% higher than Limestone County's sales tax. This only affects some retail businesses in the way I-565 service.
- Decatur has a sales tax of 9% in most of the city limits, but has a 10% sales tax on a fraction of the city in Limestone County, due to higher local taxes.
Alaska
There is no state sales tax in Alaska; however, the local government - which covers the territory, the state of Alaska that is equivalent to the district, and the municipality - can pick up up to 7.5 percent. In January 2009, 108 of them did so. City sales tax is collected in addition to the sales tax of the borough, if any. Regulations and exclusions vary widely across states. The two largest cities, Anchorage and Fairbanks, do not charge local sales tax. The state capital, Juneau, has a 5 percent sales tax rate.
Arizona
Arizona has a tax transaction privilege (TPT) that is different from the true sales tax because it is a gross revenue tax, taxes imposed on gross receipts of vendors rather than consumer liabilities. (As described in the Administrative Administrative Code of Arizona R15-5-2202, the vendor is allowed to pass the tax amount to the consumer, but remains the party responsible for taxes to the state.) TPT is charged under 16 tax classifications (as of November 1, 2006) with the tax rate most often encountered by Arizona consumers (for example, for retail transactions) is set at 6.6 percent.
Cities and districts can add up to 6 percent of the total tariff. Home food and prescription medicines (including prescription drugs and certain prescribed homeopathic medicines) are two of the many items of real personal property issued officially from the state retail TPT; cities can impose a tax on food, and many do. Arizona TPT is one of the few excise taxes in the country imposed on contract activities rather than the sale of construction materials. Phoenix, the capital and largest city, has a 2% TPT rate.
A law passed in July 2011 created a requirement that Arizona residents state how much taxes they receive from purchases made from online retailers and off-state catalogs.
Indian reservations in Arizona have their own sales tax, and these are some of the highest sales tax rates in the United States. The country's highest sales tax in 2012, 13.725%, was found in Tuba City.
Arkansas
Arkansas has a state sales tax of 6.50%. City taxes range from 0.25% to 3.5% and local taxes range from 0% to an additional 3.25%. Including city and county taxes, the highest sales tax rate is 11,625% in Mansfield's Scott County.
Effective July 1, 2011, Arkansas state sales tax on food that is not ready (foodstuff) is reduced to 1.5% from 2%. The previous foodstuff sales tax has been reduced to 2% from 3% on July 1, 2009 and to 3% from 6% on July 1, 2007. Local sales taxes for foodstuffs remain unchanged.
California
California, from 1991 to 2012 and since 2017, has a sales tax base of 7.25% (consisting of 6% state tax and uniform local tax 1.25%) - the highest state sales tax rate in the country. Taxes may amount up to 10.25% including local sales tax, depending on the city where the purchase is made. Sales and use of taxes in the state of California are collected by the Preferred Open Equal Board, while franchise revenues and taxes are collected by the Franchise Tax Council. Many cities have a combined total sales tax of at least 8.75%.
In general, sales taxes are required for all real personal property purchases to the primary consumer. Medical equipment such as prosthetics and dental implant equipment are exempt from sales tax with the exception of prosthetic teeth such as dentures, dental orthotics/orthopedic devices, and dental crowns treated by the state as private property. Unprepared food, bread, hot drinks, candy, livestock, crops and seeds, fertilizer used to grow food, certain devices related to alternative energy, and one-time sales are also exempt from sales tax.
Colorado
Colorado state sales tax is 2.9% with some cities and districts imposing additional taxes. Denver's physical tax of 3.62%, with food eaten away from home taxed at 4%, most of the food that is not prepared (foodstuff) is excluded. There is a football stadium tax (ends 12/31/2011), but still has a mass transit tax, and taxes scientific and cultural facilities. Total sales taxes vary by city and district. Total sales tax on goods purchased in Falcon, Colorado, would be 5.13% (2.9% state, 1.23% county, and 1% PPRTA). The sales tax rate in Larimer County is approximately 7.5%. Most transactions in Denver and the surrounding area are taxed at a total of about 8%. The sales tax rate for non-food items in Denver is 7.62%. Food & amp; Total beverage item is 8.00%, and Car Rental total 11.25%.
Connecticut
Connecticut has a sales tax of 6.35%, up from 6% effective July 1, 2011, 6.25% to state, 0% to region and 0.1% to city/city. Most food products that are not prepared are not excluded, such as prescription drugs, all internet services, all magazine and newspaper subscriptions, and textbooks (for students only). Also Compact Fluorescent Light Bulbs are tax free per Connecticut State Law.
Shipping and shipping costs (including US shipping charges) made by the reseller to the customer are subject to sale and use tax when provided in connection with the sale of taxable property or personal services. Taxes apply even if fees are separately stated and applicable regardless of whether the delivery or delivery is provided by the seller or by a third party. No taxes are levied on shipping and shipping charges in respect of any sales that are not subject to sales or taxes. Shipping or delivery costs associated with the sale for resale or sale of excluded goods are not taxable. Likewise, charges for shipping or shipping are not taxable if they are made in connection with the sale of nontaxable services.
Delaware
Delaware does not rate sales tax on consumers. However, the state imposes taxes on gross receipts of most businesses, and a 4.25% document fee on vehicle registrations. The business and job license tax rate ranges from 0.096 percent to 1.92 percent, depending on the category of business activity.
District of Columbia
Washington, D.C., has a sales tax rate of 5.75% as of October 1, 2013. Taxes are levied on the sale of real personal property and selected services. (Unprepared food, including bottled water and pet food, is not subject to sales taxes, but soda and sports are subject to sales tax.) 10% tax on liquor is sold for outdoor consumption, 10% for restaurant food (including carry-on) and rental car, 18% for parking, and 14,5% for hotel accommodation. The share of hotel and restaurant food tax rates is allocated to the Convention Center Fund. Food, prescription and non-prescription medicines, and residential utility services are exempt from District sales tax.
The district once had two sales tax holidays each year, one during "back to school" and one immediately before Christmas. The "back to school" tax holiday was lifted on May 12, 2009.
On January 1, 2010, the District began to impose a tax of 5 cents per bag on each plastic bag or paper provided by the retailer at the point of sale, if the retailer sells food or alcohol. Retailers retain a cent of tax, or two cents if they offer refunds to customers for carrying their own bags. The remaining three or four cents went to the Anacostia District river cleaning fund.
Florida
Florida has a general sales tax rate of 6%. Miami-Dade County, like most of Florida, has an additional county sales boost of 1%. Taxes are levied on the sale or rental of goods, the sale of receipts, leases, licenses or rental of real property, the lease or rental of temporary living, and the sale of limited services such as commercial pest control, commercial cleaning, and certain protection services. There are various exceptions from taxes, including groceries and recipes.
Sales tax and additional sales discretion are calculated on each taxable transaction. Florida uses a "bracket system" to calculate sales taxes when transactions fall between two total dollar amounts. Multiply the entire dollar amount with the tax rate (6 percent plus the district surtax tariff) and use the bracket system to calculate taxes for less than a dollar. The Revenue Department has a tariff table (Form DR-2X) to assist citizens.
"Survey sales discretionary" can be charged by the state up to 1.5%, charged at county county level (if sent). This is 1% in most districts, 0.5% in many, and 1.5% in some like Leon. Some districts do not have additional extras. Most have an expiration date, but some do not. Only the first $ 5,000 of major purchases are subject to additional rates. Most districts are levying additional taxes for education or transportation improvements.
There are annual sales tax holidays, such as tax returns back to school in August on clothing, shoes and school supplies for a certain price that can change each year, as well as one in June 2007 to promote storm preparedness. The Legislators 2008 does not impose a sales tax holiday.
Florida also allows the region to raise "tourist development tax" to an additional 13% for stays of 6 months or less in hotels, apartment hotels, motels, motel resorts, apartments, motel apartments, boarding houses, car parks, recreational parking lots, condominiums , or a timeshare resort.
In May 2010, Florida passed a law that limits sales taxes on ships or vessels up to a maximum of $ 18,000, regardless of the purchase price. This is to encourage owners not to leave the State after purchase or to mark "offshore" that most owners do before the passage of this law. As a result, the Florida Revenue Department has seen a dramatic increase in sales tax revenues from boat sales.
Florida is the only state that imposes a sales tax on real estate, commercial or residential leases, which increases more than a billion dollars a year from taxes. Rental housing of more than six months is exempt from tax.
Georgia
Georgia has had a state tax rate of 4% since April 1, 1989, when it was raised from 3%. Services (including postage but not delivery) and prescription drugs are not taxed at all, while over-the-counter medicines, medical equipment, drugstores and other basic necessities are fully taxed. Since the 1990s, groceries (packaged foods not intended for on-site consumption) are exempt from state sales tax, but are still subject to local sales tax rates. Since the beginning of 2010, ready-made items at grocery stores (even non-cafes), such as fresh baked bread from the bakery, are taxed as if they were not groceries, although it is clearly a basic need for consumption at home.
Countries in Georgia may charge local sales taxes of 1%, 2%, or 3%, consisting of up to three local sales taxes-1% option (of a set of five) as permitted by Georgian legislation. This includes special destination taxes (SPLOST) for a list of specific projects, general purpose LOST, homestead exemption (HOST), and public school (ELOST) education that can be submitted for referendum by school boards (districts and cities' must agree) not the county commission (in cooperation with the city council) as well as other taxes. Also, the city of Atlanta imposed an additional 1% of city-preferred sales tax (MOST), as permitted by the special law of the Georgia General Assembly, and was last updated by voters in presidential elections February 2016 to 2020. This is to improve the water system and sewage disposal, especially by separating sewers from sanitary sewers. In April 2016, a November referendum for an additional half-percent was signed into law for MARTA, but only for the city of Atlanta, after legislators from the wealthy northern suburbs refused to allow the bill to go forward unless their districts were excluded. This essentially limits the use of funds to the Atlanta Beltline until 2057, becoming the only necessary expansion project within the city limits, and blocking the extension of the northern (red) line to Roswell and Alpharetta where it is most needed to reduce congestion.
In March 2016, the total sales tax rate in Georgia was 3% for groceries and 7% for other items in 107 out of 159 districts. Seven districts only charge 2% local tax (6% total for non-wholesale goods), and no zero or 1%, but 45 now charge 4% (8% total) due to TSPLOSTs. Some (but not entirely) partially exclude food from local taxes by charging 1% less for non-restaurant meals than any other items. Fulton and DeKalb (and since 2015, Clayton) the 1% districts for MARTA, and the adjacent Atlanta metro district can do so by a referendum if they so choose. For the parts of Fulton and DeKalb in the city of Atlanta, the total is 4% and 3% respectively on groceries and 8% on other items due to MOST, and the release of DeKalb foodstuffs from HOST. The cities and counties of Muscogee include "other" taxes as one of their three 1% taxes.
Beginning in 2012, the territories laid down by the respective new laws are allowed to select TSPLOST sales taxes for transportation project financing, including public transportation and fast transit (which only play an important role in Atlanta metro, and are constitutionally blocked from the use of tax revenues fuel). Most of the area is against it, except for the three central Georgia regions from Columbus to Augusta. TSPLOST is not subject to a 3% limit on local taxes, making local rates in the district up to 8%. By 2015, the situation for alternative transportation in the state is made even worse when the per-gallon excise tax is raised and sales taxes are wiped out for gasoline, blocking even more state funds from being used for investment reducing traffic like commuter trains and others.
Similar to Florida and certain other countries, Georgia used to have two yearly sales tax holidays, starting in 2002. One for resale to school during the first weekend of August, but sometimes begins at the end of July. The second usually occurs in October, for energy-efficient home appliances with Energy Star certification. There are no sales tax holidays in 2010 and 2011, but they are recovered in 2012 after the worst recession of the late 2000s has passed.
Starting in 2013, Georgia now imposes a one-time tax ad valorem (TAVT) tax on all vehicles sold within the country (both sellers and personal sales are included in this tax). TAVT is based on fair market value of vehicles. However, Georgia no longer imposes sales tax on motor vehicles, and purchases falling into the TAVT taxation system no longer pay the annual ad valorem tax on vehicles. Basically, the new TAVT incorporates an annual ad valorem vehicle tax and vehicle sales tax. Non-motorized vehicles are not eligible for the TAVT system and are therefore subject to an annual ad valorem tax. Vehicles brought from outside the country are also subject to TAVT. Vehicle sales or taxes paid to other countries are not credited to TAVT in Georgia.
Georgia has many exceptions available for certain businesses and industries, and other charities and nonprofits like the church are released. To identify potential exclusions, businesses and consumers must examine the laws and rules for sales and use taxes and review the current exclusion form.
Guam
Guam does not have a general sales tax imposed on the consumer with the exception of the hotel's occupancy, use, and tax revenues; however, businesses must pay a 4% tax on their monthly gross income. There are no separate district, district, school district, or district repair districts.
Use tax is 4% on non-exclusive personal property imported to Guam. The hotel tax is 11% of the daily room rate. Alcoholic drinks vary depending on the drink. In addition there are tobacco taxes, property taxes, entertainment taxes, recreational facility taxes, and liquid fuel taxes.
Hawaii
Hawaii does not have a sales tax of per se , but it has a tax of gross receipts (called General Excise Tax) and Use Tax applicable to almost every type of transaction (including service), and technically charged to businesses rather than consumers. Hawaii Law allows companies to impart taxes to consumers in a manner similar to sales tax.
Unlike other states, rent, medical services and perishables are subject to excise taxes. Also, unlike other countries, businesses are not required to show tax separately on receipts, as they are technically part of the sale price. Most retail businesses in Hawaii, however, register taxes as separate line items. 4.0% is charged to retail with an additional 0.5% surcharge in City and County Honolulu (for a total of 4.5% on Oahu sales), and 0.5% charged on wholesale. However, the state also allows "taxes on taxes" to be imposed, which effectively means customers can be billed as much as 4.166% (4.712% on Oahu). The exact dollar amount or percentage to add must be quoted to customers in or along with the price. A 0.5% surcharge in Oahu is applied to finance the new rail transportation system. Like any other state sales tax, nonprofits may apply for exemption from taxes.
Hawaii also imposes a "usage tax" on businesses that provide "LANDED" services in Hawaii. One example is: A Hawaii property owner contracts with a mainland architect to design their Hawaiian home. Although architects may do all their work on land premises, architects need to pay the State of Hawaii a 4% usage tax on architect fees because the designed house is located in Hawaii (even if the house was never built). Tax is on the resulting product which is the design and development plan provided. This applies to commercial property design as well.
Idaho
Idaho embarked on a 3.0% sales tax in 1965 and its current rate is 6.0%. Some areas charge additional local sales tax.
Illinois
The Illinois tax sale and use scheme includes four major divisions: Reseller Occupation Tax, Usage Tax, Service Placement Tax, and Service Usage Tax. Each of these taxes is administered by the Illinois Revenue Department. The Reseller Occupation Tax is levied on persons engaged in the business of selling real personal property to buyers for use or consumption. This is measured by the gross acceptance of retailers. The base rate of 6.25% is broken down as follows: 5% Country, 1% City, 0.25% County. Local governments may impose additional taxes that result in a combined rate that ranges from the minimum State of 6.25% to 9.00% per May 2013.
Springfield charges 8.00% total (including state tax). Tax Complementary usage is subject to the privilege of using or consuming properties purchased anywhere in retail from retailers. Illinois listed retailers are authorized to collect Usage Taxes from their customers and use them to compensate their obligations under the Retail Occupied Tax Law. Since the Use Tax rate is the same as the appropriate Reseller Placement Tax rate, the amount collected by the retailer matches the amount that resellers must submit to the Illinois Revenue Department. The combination of these two taxes is what is commonly referred to as "sales tax". If buyers do not pay Taxes Direct use to retailers (for example, on goods purchased from Internet sellers), they must ship them directly to the Illinois Revenue Department.
The Service Occupation Tax is levied on the privilege of engaging in the service business and is measured at the selling price of the transferred private property transferred as an incident to provide the service. Service Use Tax is levied on the privilege of using or using the intangible personal property transferred as an incident for the provision of services. An example is a business card printer. The printer owes the Service Placement Tax on the value of paper and ink transferred to the customer in the form of a printed business card. The service officer may comply with this tax by paying the Usage Tax to paper and ink suppliers or alternatively, may impose a Service Usage Tax to the buyer of a business card and submit the amount collected as a Working Services Tax on employee tax returns. However the service itself is not taxed.
Qualified food, medicines, medicines and medical equipment have a 1% sales tax plus local house rule taxes depending on the purchase location. Newspapers and magazines are exempt from sales tax such as legal tender, currency, medal, gold bullion or gold or silver issued by the State of Illinois, the United States government, or a foreign government.
The city of Chicago has one of the highest sales taxes in all major US cities (10.25%). This was high (10.25%), but was reduced when Cook County lowered its sales tax by 0.5% in July 2010, another 0.25% in January 2012, and another 0.25% in January 2013. Chicago wore 2 , 25% food tax on regular groceries and drug purchases, and an additional 3% soft drink tax (13.25% total). An additional 1% is charged for food and beverage purchases prepared at the Loop and nearby neighborhoods (areas roughly bounded by Diversey Parkway, Ashland Avenue, Stevenson Expressway, and Lake Michigan).
Illinois requires residents who make purchases online or while traveling outside the state to report such purchases on their state income tax form and pay their usage taxes. In 2014, Illinois passed a law requiring sales tax to be collected by "catalogs, mail-orders and similar retailers along with online sellers... if they had $ 10,000 or more sales in the previous year." Although the law comes into force on 1 January 2015, resellers are given an additional month to comply with the law.
Indiana
Indiana has a state sales tax of 7%. The tax rate was raised from 6% on April 1, 2008, to offset the loss of revenues from property tax reform across the state, which is expected to significantly reduce property taxes. Previously this 5 percent from 1983-2002. That's 6 percent from 2002-2008. The current rate reached 7 percent. Unpaid retail goods include medicines, water, ice and uncooked raw foods, or fruit juices. Many areas, including counties or cities, in the state of Indiana also have sales taxes for food and beverages in restaurants that are consumed in restaurants or purchased to go.
Revenue is usually used for economic development and tourism projects. This additional tax rate may be 1% or 2% or any other amount depending on the area where the business is located. For example, in Marion County, sales tax for restaurants is 9%. There is an additional 2% tax for restaurant sales in Marion County to pay for Lucas Oil Stadium and the expansion of the Indiana Convention Center.
Iowa
Iowa has a state sales tax of 6% and an optional local sales tax of 1% imposed by most cities and unrelated parts in most areas, bringing the total to a maximum of 7%. There is no tax for the most unprepared food. The Iowa Revenue Department provides information on local option sales taxes, including the search for the sales tax rate. Iowa also has sales tax on services when provided, equipped, or performed.
Kansas
Kansas has a state sales tax of 6.5% as of July 1, 2015. Over 900 jurisdictions within countries (cities, counties and special districts) may impose additional taxes. For example, in the capital of Topeka, retailers must collect 6.5% for the state, 1.15% for Shawnee County, and 1.5% for cities, for a total rate of 9.15%. As of May 2014, the highest combined sales tax rate is located in Junction City where there is a community improvement district called Goodies Plaza. That number is 11.15%.
Kentucky
Kentucky has a state sales tax of 6%. Most groceries are free. Alcohol sales were previously excluded until April 1, 2009, when a 6% tariff is applied for this category as well.
Louisiana
Louisiana has a state sales tax of 5% as of April 1, 2016. State sales taxes are not imposed on food that is not prepared. There are also taxes at the parish (county) level and some at the city level, Baton Rouge has a 5% sales tax. Parishes can add local taxes up to 5%, while local jurisdictions within the parish can add more. At Allen Parish, a combined sales tax of up to 11% (0.7% for Parish Council, 3% for School Board, 1% to 1.3% for City/Town). New Orleans (bordered by Orleans Parish) collects a maximum tax rate of 5% for a total of 10% for general purpose items. For food and medicines the tax rate is 4.5%, for a total of 9.5%. Louisiana offers a sales tax audit to private companies, with many being paid based on the percentages collected.
Maine
Maine has 5.5% public, service providers and usage taxes (raised, while until further notice, from 5% on October 1, 2013). The tax on lodging and prepared food is 8% and the short term car rental is 10%. These are all formally known as "sales tax".
Maryland
Maryland has a sales tax and state use of 6% (increased from 5% in 2007) as of January 3, 2008, with the exception of medicines, residential energy, and most non-prepared foods (with the main exception of alcoholic beverages, candies, soda, single ice cream pack, ice, bottled water [including water and carbonated], and sports drinks). Although most items are taxed, many services (eg, Repairs, haircut, accounting) are not. Maryland sales tax included internet purchases and other mail items such as magazine subscriptions. Maryland has a "back to school" tax holiday with a limited amount of consumer goods. As of July 1, 2011, selective sale tax on alcohol was raised from 6% to 9%.
On January 1, 2012, Montgomery County began to impose a tax of 5 cents per bag on plastic bags and paper provided by retailers at the place of sale, pickup, or delivery (with some exceptions, especially bags for loose products at store, recipes, and paper bags at fast food restaurants). Four cents of this tax goes to the district's water quality fund, and a penny is returned to the retailer.
Massachusetts
Massachusetts has a state sales tax of 6.25% on most items (up from 5% in 2009). There is no sales tax on food items, but fast food purchased at a restaurant is subject to a 6.25% food tax (in some voting cities choosing to add a local 0.75% tax, raising the food tax to 7% the income back to town). The liquor sales tax is lifted in a referendum 2010. The sale of each clothing item for $ 175 or less is generally waived; on individual items worth more than $ 175, sales tax will only amount to more than $ 175. There have been attempts by voting a referendum voting initiative in Massachusetts state elections to change the overall rate of sales taxation in Massachusetts, or in the classroom - certain classes of goods sold: examples include the end of the taxation mentioned earlier to the rising alcoholics for voting in 2010 state election, and a separate overall reduction to 3% sales tax on most sales in the state in the same year.
Michigan
Michigan has a sales tax of 6% (up from 4% in 1994). Michigan has a 6% usage tax, which is a tax applied to goods brought to Michigan but not purchased there, and where taxes are not paid to the country where the goods were purchased. Taxes should be paid when applying the annual income tax of the population.
Service tax was approved in September 2007, effective December 1, 2007, which allows certain services to be taxed. Service tax is revoked on the same day in effect. There are no local sales taxes in Michigan. There is now a sales tax in Michigan for the total number of online orders, which means that the shipping costs are now taxable. Food, regular, and prescription drugs are not taxed. Food served in other restaurants and 'ready foods' is taxed at the general sales tax rate.
Michigan Ballot Proposal 2015-1, failed by 80% of people who say "No" in the May 5 election. Proposal will increase sales and use tax up to 7%.
Minnesota
Minnesota currently has a statewide sales tax of 6.875%. The statewide section consists of two parts: a sales tax of 6.5% with receipts to the State General Fund, and a 0.375% tax on art and environmental projects. The 0.375% tax was approved by a state-wide referendum on November 4, 2008, and came into force on 1 July 2009. Generally, food (excluding ready-to-eat foods, some drinks such as pop and other items such as candy) and clothing is exempt from sales tax. Prescription drugs are also excluded.
Local government units may, subject to legislative approval, impose additional general sales taxes. On July 1, 2008, an additional 0.25% Transit Improvement tax was incurred gradually in five areas in Minneapolis-St. Paul metropolitan area for transit development. These districts are Hennepin, Ramsey, Anoka, Dakota, and Washington. 0.15% sales tax applied in Hennepin County to fund new Target Field in Minnesota Twins. Some cities impose their own sales taxes throughout the city: Saint Paul (0.5%), Minneapolis (0.5%), Rochester (0.5%), and Duluth (1%).
These additional taxes increased the total general sales tax rate to 7.875% in Duluth, 7.775% in Minneapolis, 7.625% in Saint Paul, and 7.375% in Rochester.
In addition to the general sales tax, local government units may, again with legislative approval, impose sales tax on certain goods. Current local options taxes include "lodging" taxes in Duluth (3%), Minneapolis (3%), and Rochester (4%), and serving "food and beverage" taxes in Duluth (2.25%).
Alcohol is taxed at an additional 2.5% of the gross acceptance tax rate above the statutory tax rate of 6.875% statewide, for a total rate of 9.375%, excluding applicable local taxes. This totals 10.375% in Duluth, 10.275% in Minneapolis, 10.125% in Saint Paul, and 9.875% in Rochester.
Mississippi
Mississippi has a state sales tax of 7%. Cities and cities may apply additional tourist taxes on restaurant and hotel sales. The city of Tupelo has a tax of 0.25% in addition to other taxes. Restaurants and fast food taxes are 9%, like Hattiesburg, for example.
Missouri
Missouri imposes sales tax on all sales of tangible personal property, as well as some "taxable services"; he also imposed a tax on the use of "the privilege of storing, using, or consuming in this state any tangible personal property." State level, including conservation and other taxes, is 4,225%, and districts, municipalities, and other political subdivisions impose their own taxes. Additional local taxes combined with "community enhancement districts," "transport development districts," and "museum district taxes" can result in sales taxes of over 10%. The state sale tax rate on certain foods is 1,225%.
Missouri provides some exceptions to sales taxes, such as purchases by charitable organizations or some common carriers (as opposed to "contract operators"). Missouri also excludes some purchases from taxation on the grounds that the sale is not a retail sale; this includes sales to political subdivisions. The Missouri Supreme Court in August 2009 ruled that when a sale is exempt from taxation - as opposed to being exempt from taxes - the seller must increase the sales tax on the purchase of his own goods and submit taxes on the purchase.. This decision was reversed by two similar statutes - but not identical - that were added during the regular session of the 2010 general assembly.
Although the buyer is obligated to pay taxes, the seller is obliged to submit taxes, and when the seller fails to deliver, the obligation to pay falls on them. As compensation for collecting and handing taxes, and as an incentive to send taxes on time, the seller may keep two percent of all taxes collected each period. There are two exceptions to the general rule that a seller must pay sales tax when he fails to pick it up.
First, there is no sales tax due to the purchase of a motor vehicle that should be titled. Instead, buyers pay taxes directly to the Revenue Department within a month of purchase. As long as the vehicle is taken out of the country within the first month of purchase and is titled elsewhere, there is no tax payable in Missouri. Secondly, if the buyer provides a release certificate to the buyer at the time of sale, then the buyer may be assessed tax on the purchase if the certificate is issued in bad faith.
Montana
Montana has no state sales tax but some municipalities that are major tourist destinations, such as Whitefish, Red Lodge, Big Sky, and West Yellowstone, have a sales tax (up to 3%). Hotels, campers and similar lodging charge "lodging and usage taxes", usually at 7%. Car rental companies charge a 4% tax on basic rental rates.
Nebraska
Nebraska has a state sales tax of 5.5% of which groceries are excluded. City has the option to enforce an additional sales tax of up to 1.5%, resulting in a maximum rate of 7.0%. District-specific tax rates are available on the web. Omaha also has a 2.5% tax on prepared food and beverages.
Nevada
The state tax rate on sales of Nevada is 6.85%. States may impose additional tariffs through voter approval or by approval of the Legislature; therefore, applicable sales tax will vary by county from 6.85% to 8.15% in Clark County. Clark County, which includes Las Vegas, imposes four separate area option taxes in addition to the state level - 0.25% for flood control, 0.50% for mass transit, 0.25% to fund the Southern Nevada Water Authority, and 0, 30% for the addition of police officers in the area. In Washoe County (which includes Reno), the sales tax rate is 7.725%, due to the regional option rate for flood control, the ReTRAC train trap project, the mass transit, and additional district levels approved under the Local Government Tax Act of 1991.
For travelers to Las Vegas, note that the lodging tax rate at 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
Sales tax in New Hampshire is limited to 9% tax on fast food, 9% for hotels and similar room rentals for less than 185 days, 9% for motor vehicle rentals, and 7% for telecommunications services. 1.5% transfer tax imposed on the sale of real estate. Taxable foods exclude food and beverages for outdoor consumption, but catering and restaurant meals may be taxed.
New Hampshire also imposes excise taxes on gasoline at $ 0.196 per gallon, cigarettes at $ 1.78 per pack, beer at $ 0.30 per gallon, and electricity at $ 0.00055 per kilowatt-hour.
New Jersey
The state of sales and use of the New Jersey tax rate is 6.625% effective January 1, 2018. Certain items are exempt from taxes, especially most clothing, footwear, and food. However, there are exceptions to this statewide level. At Urban Enterprise Zones, UEZ-affected business areas, and in both Salem County and Cumberland County, sales taxes are collected at 50% of the regular tariff (currently 3,3125%) for certain items. In addition, local sales taxes are imposed on the sale of certain items sold in Atlantic City and Cape May County. The highest sales tax in the state is in Atlantic City at 12.875% (although certain items are exempt from additional taxes).
The full list of Urban Enterprise Zones is available on the New Jersey State website.
New Jersey does not impose sales taxes on unpaid food (except sweets and pet food), household paper products, medicines, and clothing. New Jersey does not impose sales tax on goods purchased for resale or on capital increase but does not impose any sales tax on certain services.
New Jersey does not impose a sales tax on gasoline, but gasoline is subject to a $ 0.375/gallon excise tax. Cigarettes are subject to excise tax of $ 2.70/pack, in addition to sales tax.
New Mexico
New Mexico imposes a 5% gross revenue tax on most retail sales or rental properties or service performance in New Mexico. Taxes are levied on sellers but are common for sellers to transfer taxes to buyers. The country rate is 5.125%. Municipalities can assess additional gross revenue tax, resulting in rates between 5.375% and 8.8625%. Many exceptions and specific deductions apply. Taxes may increase depending on the growth of the country.
New York
State sales tax rate in New York is 4%. All districts, by default, are authorized to collect an additional 3% sales tax above 4% state tax; under local, county and municipal law rules may only levy higher sales tax (or lower, but this option is not exercised) if approved by the New York State Legislature, and this agreement shall be repeated every two year. By 2017, all countries except Warren, Washington, and Westchester in New York charge a higher sales tax rate than the default rate of 3%. The combined sales tax in Utica, for example, is 8.75%. In New York City, the total sales tax is 8.875%, which includes 0.375% charged in the Metropolitan Commuter Transportation District (MCTD).
On September 1, 2007, New York State eliminated 4% state sales tax on all clothing and footwear if one such item was priced under $ 110. Most districts and cities have not abolished their local sales taxes on clothing and footwear. There are however, 5 cities (mainly New York City) and 9 districts (excluding the five districts that make up New York City: New York, Queens, Kings, Richmond, and Bronx counties) who have done it.
Countries that have abolished their local sales tax on clothing and footwear if one item is priced below $ 110 are: Chautauqua, Chenango (outside Norwich City), Columbia, Delaware, Greene, Hamilton, Madison (outside Oneida town ), Tioga, and Wayne. The cities of Binghamton, Gloversville, New York City, Olean, and Sherrill do not collect local sales taxes. New York State also excludes college text books from sales tax.
Since June 1, 2008, when a product is purchased online and shipped to New York State, some retailers must charge the amount of tax that corresponds to the territory in which it was shipped, and in addition, also must impose appropriate taxes on shipping and handling charges. Size states that any online retailer who earns more than $ 10,000 in sales through sales affiliates in the state must collect New York sales tax. The cumulative gross receipts from sales to New York customers as a result of referrals by all resident sellers' representatives amounted to more than $ 10,000 over four previous quarterly sales tax periods.
From October 1, 2010 through March 31, 2011, statewide sales and tax exemption on clothing and footwear sold for less than $ 110 were removed. For New York City, this means clothing items that cost less than $ 110 are taxed at 4.375%. The state sale tax exemption for clothing and shoes under $ 55 is returned from 1 April 2011 to 31 March 2012. The original release ($ 110) was reinstated after 31 March 2012.
North Carolina
North Carolina has a state sales tax of 4.75%, effective from 1 July 2011, with most districts adding 2% tax, with a total tax of 6.75% in 72 out of 100 districts. Mecklenburg and Wake districts charge an additional 0.5% tax, which is directed to fund the light rail system, with a total of 7.25% and total sales tax in 25 other districts is 7%. Count
Source of the article : Wikipedia
0 Comments