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Tax Law Information By State

State Tax Law Information

Alabama Taxes:

By the large Alabama has a fairly straightforward system of taxation, but it has many peculiarities that make it fairly distinctive. Alabama sales and use taxes are somewhat unique, as the taxes, which hold statewide, are determined by beginning with a base tax rate, which is 4%, and adding to to rate based on the nature of the product or service being sold.

Alabama has also drawn some controversy because it has uncoupled bonus depreciation from the federal government, causing those deductions to be added back to the state return after being removed from the federal return. Otherwise, Alabama can be regarded as being extremely tax friendly to corporations, with a comparatively low base 5% income tax rate for all businesses, regardless of the nature of the company.

Alaska Taxes:

Alaska fosters one of the more distinctive taxation systems in the country, because very little of the state's tax revenue is derived from the general population. In fact, many citizens of Alaska have no state tax liability whatsoever. Alaska has no state income tax and many areas have neither sales tax or property tax.
This is because the nature of Alaska's infrastructure, which consists of many isolated communities that are still not incorporated into municipalities, spread over a vast geographic terrain, often forbids the strong uniform government needed to implement systems of taxation.

Therefore, much of Alaska's tax revenue is derived from the taxation of companies that harvest and export the state's natural resources, especially its vast mineral and petroleum wealth. However, there are concerns in many circles that this system of taxation may not be sustainable over the long term, which can have disastrous implications for Alaska's future solvency.

Arizona Taxes:

Arizona has been the source of much national scorn, generated by its recent anti-Immigration policies as well as its considerable financial difficulties. Its financial difficulties, caused by an inability to maximize tax revenue, has been, in part, generated by an overabundance of illegal immigrant workers, who draw income from the economy with paying taxes on their income back to the state.

This was one cause of the anti-Immigration policies, but the policy has recently made the situation dramatically worse, as tourism in Arizona has presently subsided, and many major corporations are now refusing to do business in the state.

Since many of Arizona's highest taxed services are those provided to tourists, corporate income taxes, and commercial property taxes, this has already caused a significant loss of revenue in a state that is so insolvent that it has been forced to sell or lease some of its federal building and property.
Arkansas Taxes:

The most significant recent issues that have effected taxation in Arkansas has been centered heavily on increasing unemployment taxes that many businesses now pay, due to the increasing amounts of state residents seeking unemployment benefits.

This has been a controversial measure in some circles because it places the burden for the state’s unemployed on the businesses that are still contributing to the state economy by employing taxpaying citizens, which is considered unfair and potentially damaging to the sustainability of these remaining employers.

Arkansas’s taxation also has an interesting history in trying to regulate both alcohol and cigarette use by demanding fairly high tax rates on both forms of product. Arkansas is often known for being a “dry,” or temperance, state, and though that has subsided in most counties (though not in all), there are still heavy taxes liened on products high in alcohol, such as liquor and mixed drinks, and cigarettes, which is a holdover from those earlier eras.

California Taxes:
California, as the third largest state and extended over much of the west coast of the United States, is a geographically extended region, conversely containing some of the most economically prosperous and financially depressed regions in the entire country.

Much of the state's economy, which is the tenth largest in the world, is based on agriculture, which has been highly unstable industry despite its dramatic growth in the last few decades, and whose work force employs a number of very underpaid workers unable to contribute heavily in income taxes. A large portion of this work force also consists of a number illegal alien workers who pay no taxes to the state at all.

Simultaneously, to maintain its business and technological sectors, California implemented a number of systematic tax incentives to keep businesses operating in state and employing resident Californians, which again limited the amount of tax revenue the state was able to collect. Much of California's tax rates are also set through the process of voter referendum, where a state electorate decides some legislative matters through popular vote, taking them out of the hands of legislative government.

This lack of revenue, despite California boasting some of the highest rates of taxation in the country, combined with a state that dramatically spent far beyond its means, proved to be a recipe for what became an economic crisis...

Colorado Taxes:
Colorado remains a state of mixed blessings, in terms of its economy and taxation policies. The state boasts the 11th best average income in the country, and the state's population is growing dramatically all the time, with some estimates stating that it may have grown by nearly 20% between 2000 and 2009. This is because Colorado has a very inviting tax climate for businesses and individuals alike, and as businesses go, the work force follows.
Many major corporations have flourished in Colorado, and many more have relocated there, taking advantage of the state's fairly low flat income tax. Colorado also has a strong mining and livestock industry that has existed for longer than Colorado has been a state.

In all respects, Colorado should have a thriving economy, and in many sectors it does, but this has not been seen at the level of state government, especially in light of the recent economic crisis...

Connecticut Taxes:

Connecticut's image has always been one based on wild variations between great affluence and relative poverty, without much of a middle class in between. Decades ago, Connecticut had very low sales taxes and no tax on earned income, which allowed for many people who worked in New York City (and Boston) to commute to work from their home in Connecticut. To make up for this budget shortfall, stocks, bank accounts, dividends, and other other accounts would be taxed exorbitantly, between 11 and 13% of their yearly interest income.

Since this discouraged financial investment in Connecticut, the burden was taken up by property taxes, which meant that only the truly affluent could afford to own property and states, which cause devaluation of lower income properties that became unsellable. After this was revised in 1991 to allow for lower income rates of dividends and bonds, Connecticut has become a major location for financial institutions, especially hedge fund groups, many of whom have relocated to Connecticut.

As a result, Connecticut has more millionaires than any state save California, and the largest amount of over million dollar properties. Simultaneously, there is still a lower and middle income class who presently share much of the burden of the state's revenue, especially through flat sales taxes. At the heart of the debate over Connecticut's current economic crisis is Connecticut's complicated economic history, which has been fraught with disputes between different income classes for decades...


Delaware Taxes:

In an era where corporate responsibility is at the forefront of most discussions of economic policy, Delaware represented one of the more interesting but least examined areas of interest that probably deserved to be at the forefront of the discussion. Because Delaware's legislation is so corporate friendly and its taxes on income earned out of state non-existent, it has become the home of most of the corporations in the United States, despite paradoxically being one of the smallest states in the union. While many would point that this has made Delaware a competitive economy and valuable jurisdiction for many corporations, many have accused of being an illicit tax haven that allows corporations to evade paying tax revenue, something of on an onshore equivalent to the Cayman Islands...
District of Columbia Taxes:

Historically, many of the concerns of those living in the Washington, DC area have been complaints over the inconsistency of taxation. Taxes are changed with great regularity in the District, seemingly with every change in district government, and it becomes hard for many to try to keep adhering to the sudden changes in income and property tax requirements. At a federal level, because the District has never had a say in federal taxation (because it is not located in a state it has no Congressional representation with voting power).

Thus, there have historically been calls for city and district taxes to be reigned in to account for this, especially in its dependence on regressive taxes, such as high sales taxes on particular service that are designed to take advantage of tourism and travel to the nation's capital. It is also felt that the district's corporate tax policies discourage small business development in that they are too high. However, with District incomes falling short in terms of revenue needed to maintain government, it is likely that District residents will likely see more and higher taxes in the future, not less and fewer ones; a sign of the precarious state of city budgetary concerns going forward...
Florida Taxes:
Since Florida has no individual state income tax, much of its tax revenue is made from sales taxes, which yields more revenue in Florida than most states because of Florida's year-round tourist trade. Therefore, when the tourist trade is down, state tax revenues are down. Since the economic downturn of 2007-2008, many people world over have been forced to conserve, and thus luxurious trips to places like Florida are no longer a realistic expense for many. As a result, Florida has been trapped in downward cycle of less tourists, who are themselves spending less, giving the state far less revenue that normal. Due to the comparatively large amount of unemployed and impoverished citizens statewide, as well as the high rates of insurance (caused by Florida's high volume of hurricanes each year), it is widely considered than any implementation of a state income tax financially unrealistic. This would lead only to raising property taxes, which would only cause further financial hardships to a state already trapped in a recession. It would seem that all that remains is for Florida and its tourist industry to really do at present time is to encourage tourism to the state, because that remains the main avenue for Florida to sustain solvency. Whether that will happen, or not happen, remains to be seen...
Georgia Taxes:
According to Georgia income tax law, both residents as well as nonresidents are required to file income tax returns. In reference to nonresidents, however, there does exist an exception that removes such a requirement. This entails the amassing of compensation below a specified level of earnings. "Retirement income exclusion" also exists as an option for both elderly individuals as well as total and permanently disabled individuals residing within the state of Georgia.Examples of interests that may fall under the label of "retirement income" include pensions, net income, rental property, and capital gains income. When concerning Georgia sales tax law, the state maintains a "sales tax unit," which oversees the conveyance of tax returns for retailers as well as their processing. This unit also holds educational sessions for individuals to learn the nuances of Georgia sales tax law. It must be acknowledged that, upon the missing of tax payments, delinquent payments must be dealt with, whether in full or in installments, as applicable.

Hawaii Taxes:

One of the main aspects of Hawaii state taxes is that which resides in the area of sales, though not how you may assume it would by traditional standards. The difference lies in Hawaii's imposition of "general excise taxes." These are taxes that the state places upon the business or retailer alone as Hawaii does not possess actual sales taxes. Due to this different way of imposing taxes, Hawaii attempts to shift the burden of taxes associated to sales to that of the seller.

This attempt, however, goes only as far as the actions of the retailers, themselves, as they possess the power to add on charges to the prices of their products if they feel the need to do so. In many cases, they may choose to go this route in order to lessen the burden of such taxes imposed upon them by the state of Hawaii. Businesses that are subject to these general excise taxes include: "wholesale, retail, contracting, commissions, services, interest, lease/rental, etc." Another aspect of taxes attached to consumption include that of Hawaii's "fuel tax."This tax is imposed upon fuel distributors, and may be divided into 3 sections, which include a state component, county component, and an environmental response tax.
Idaho Taxes:
Idaho sales tax law specifies that sales tax be placed on that which may be labeled as "tangible property." Despite this fact, one important exception does exist in terms of prescription drugs. Idaho differentiates itself from other states as it does not impose any sale tax upon any prescription drugs whatsoever. Examples of items that are subject to taxes include that of cigarettes as well as other tobacco products. The cigarette tax for Idaho is at a rate of 57 cents per basic pack while the sales tax rate for all other tobacco products is that of 40% or their "wholesale" price. Keep in mind that penalties are set forth for cigarette sales online or by phone. This is due to the fact that packages purchased by these means usually do not possess tax stamps. This entails that taxes are, therefore, not being adequately paid for. The minimum penalty for procuring packs exceeding that of 10 would be that of $50. Another aspect of Idaho sales tax law that does the opposite of taking payments from individuals is that of "Idaho Grocery Credit."
Illinois Taxes:
Illinois sales tax comprises 3 aspects, which include "qualifying food/drugs/medical supplies," "vehicles," and another for all "other general merchandise." These categories possess various rates of interest as well as base rates include 1% for qualifying foods and 6.25% for both vehicles and "other" general merchandise. Such variations also apply to local taxes as well. Illinois also sets forth exemptions for nonprofit organizations. In order for such organizations to apply for exemption, they must present a prescribed set of documents, which include, but are not limited to, recent financial statements as well as by-laws the nonprofit abides by. "Charitable games" also represent another aspect, however, is not completely free from taxes as total gross profits are taxed. Such games must have been conducted by organizations whose mission may include that of charity or education, for instance. Games that may be available under this label include those such as poker, craps, an merchandise wheel.

Indiana Taxes:

Indiana sales tax laws place specifications upon many areas of concern within the state. Three such examples include that of meals/banquets, nonprofit organizations, and photography. When referencing nonprofit organizations, we must be aware that such applications for status exemption is not guaranteed. Nonprofit organizations, like all other types of organizations, must register and acquire an appropriate taxpayer id number, for instance. In addition organizations deemed as "social" by the IRS are not eligible whatsoever, and will be subject to Indiana sales tax.

Another area of interest is that which photographers must be concerned with. In relation to photographers, their photographs are subject to Indiana sales tax if they are meant to be sold to the general public. Despite the plethora of items and events requiring sales tax, there do exist deductions as well. Such an example includes that of sales tax deductions due to the use of ethanol fuel, for instance.

Kansas Taxes:

Kansas income tax law requires that the following parties file state income taxes: residents, nonresidents, part-year residents, military personnel, and native american indians. According to Kansas income tax distinctions, residents are individuals who reside within the state legally, regardless of their actual place of employment while nonresidents are, then, those who represent the exact opposite of this, yet must also file state income taxes if they garner their wages from it.

Kansas state tax law also specifies that individuals be subject to whatever state they place their permanent residence within. This refers to military personnel, for instance, who may be wondering if their various stations will affect their income tax status. Native Americans present a population that may garner exemptions according to such a specification as them attaining their income from their reservation land. Due to the multitudes of tax-related matters, it may not be difficult to falter. Therefore, familiarity with the appeals process would be an appropriate course of action.

Kentucky Taxes:

The state's individual income tax statutes stem from the "Internal Revenue Code," which increase tax rates from 2% to that of 6%. In addition, tax credits also exist, which allow for monetary relief. Examples of credits include the "Kentucky Energy Efficiency Products Tax Credit" and the "New Home Tax Credit." In order to be eligible for the energy efficiency credit, form 5695-K must be filled. Kentucky comprises a number of states that adhere to a "Streamlined Sales Tax Agreement."

According to this agreement, certain states have joined each other in setting forth a mutual statement of the rules for sales and use tax. Additional Kentucky taxes also include that which is attached to motor fuel. The minimum price of taxation is that of a whole sale amount of $1.786 per gallon.In contrast to other taxes collected within the state of Kentucky, motor fuels taxes are to be sent to the "Road Fund," which are put towards the institution and overseeing of this state's roadways.
Louisiana Taxes:
Under Louisiana income tax law,the following groups are subject to taxation: residents, part-year residents, and nonresidents amassing income from the state. These returns are due on May 15th each and every year. Both nonresidents and part-year residents will employ the assistance of the "tax computation worksheet" in order to accurately calculate the amount of tax set forth on their income. One additional specification that Louisiana state law recognizes in terms of individual income tax returns is that of nonresident athletes. These individuals must be members of any one of the following associations or leagues: PGA Tour, Inc., NFL, NBA, NHL, the East Coast Hockey League, or the Pacific Coast League. Aside from these population considerations, there also exist taxes on items such as is representative of the "gift tax." In general, tax is 2% for the first $15,000 in taxed gifts and 3% for those that exceed this amount.

Maine Taxes:

Maine sales tax is that which is placed upon all items considered either “tangible personal property” or “taxable services sold at retail” within the state of Maine. Personal property encompasses that which may be physically seen as well as measured or weighed, and felt. Despite the irregularity of service taxation, the following are subject to such taxes: the rental of hotel rooms as well as that of automobiles. "Sale" is described as any transaction, which may include “leases and contracts” that must be compensated in order to acquire and use, but only when the ‘State Tax Assessor’ labels them as part of a purchase.

Maine sales tax rates range from that of general services at 5% to that of lodging/prepared food at 7%, and then toward short term auto rental at 10% as well. Income taxes also represent an important aspect of Maine taxes as corporations fall into this category as well. These companies are taxed according to Maine income tax law with amounts varying from 3.5% for income $25,000 or below, and 8.93% for that which exceeds $250,000. S-corporations, however, are exempt from corporate income tax impositions.

Maryland Taxes:

In order to be eligible for income tax filing within the state of Maryland, you must be a Maryland resident, have been required to file federal income tax returns, and have also fallen into its gross income filing requirements. Distinctions occur depending upon many qualifications such as whether you are single, the head of the household, married filing jointly, married filing separately, a widower, or a dependent taxpayer. In addition to the actual compilation of information for the goal of your adherence to the state, you may also be eligible for personal income tax credits, which reduce the total amount of tax owed. Certain examples include Maryland tax credits include “Child and Dependent Care,” “Poverty-Level,” and “Quality Teacher Incentive” credits. In reference to refunds, your income tax return must be on hand in order for you to quickly ensure that the information provided was correct. When seeking out the quickest means of acquiring a refund, the internet may be the best avenue to take due to its quick turnover time.
Massachusetts Taxes:
When residing within the state of Massachusetts, taxes become a part of life that may, in most cases, not be avoided. Within this state, the area of property taxes does take precedence as it represents a common concern for citizens and property owners alike. In general, Massachusetts classifies property according to whether it is "residential, open space, commercial, industrial, or personal." The state also specifies two payment periods for property taxes, which allow tax payers time to divide up such monetary considerations.

A significant quality connected to the collection of property taxes within the state is that of the detail and interest placed upon qualifications for exemptions. Massachusetts possesses exemptions for 4 distinct populations composed of blind individuals, the elderly, surviving spouses/children, and veterans. Each groups has a number of specifications to satisfy prior to even applying for property tax exemptions, but upon completion, will garner adequate assistance.

Following thorough consideration of issues dealing with property taxes, matters concerning sales tax represent another area of interest since residents as well as visitors alike must be cognizant of these requirements. In relation to this area of taxes, consumers must be aware that not all items possess a sales tax. For instance, only clothing purchases totaling above $175 at one time may be taxed. Equipped with such knowledge concerning these two avenues of taxation, will allow for a smooth transition into what Massachusetts has to offer.

Michigan Taxes:

Two major aspects attached to law governing Michigan taxes include that of "Homestead Property Tax Credit/Home Heating Credit" as well as the specifications existent within the institution of sales taxes. In reference to Homestead credits, one must determine their eligibility as well as their total household income. Dependents are not eligible for such areas concerning property taxes, for instance.

In terms of sales tax, retailers are required to register for sales tax licenses while whole sale retailer may be exempt due to the distinction in dealing with the "final consumer." There also exist specifications that attach themselves to the sale of tobacco products as well as fuel, both of which represent necessities to most state populations. It is illegal for tobacco products to be purchased or sold without adequate taxes applied according to state law. Michigan adheres to one statewide sales tax, in contrast to other states, which possess multitudes in terms of varying local sales taxes. This constant tax decreases room for confusion.

Minnesota Taxes:

Minnesota focuses on the inclusion of specifications attached to ever-changing legislation as well as the maintenance of its traditional functions attached to individual income taxes and lesser acknowledged taxes. Contamination tax is representative of such a tax, which many may not even be aware had existed. In reference to modifications, various changes have been enacted in terms of Minnesota tax law.

For instance, deductions may now be made in connection to monetary donations made to Haiti earthquake relief efforts. In terms of taxes of lesser notoriety, the contamination tax occurs in relation to real property as opposed to personal property. Despite this, it does not fall under the category of a property tax. When assessing contamination tax, "contamination value" must be equally ascertained in order to determine the reduction in the property's value due to contaminants. Knowledge of the numerous forms, as well, will be vital to the proceeding in direct adherence with tax law according to the state of Minnesota.

Mississippi Taxes:

Some distinct areas of Mississippi tax law include that of the procurement and distribution of alcohol as well as that of lesser know taxes to do with preservation of nature. An additional aspect significant to the conducting of Mississippi state business is that of the specifications set forth according to state sales tax.

In order to be in the position to legally collect sales tax on behalf of the state, individuals are expected to attain permits as well. In terms of alcohol sale, "excise taxes" have been placed on such beverages to the amount of 43 cents to every gallon, for instance. Fees must also be incurred in order to conduct legal sale of alcoholic beverages. In reference to concerns with nature, a "Timber Severance Tax" takes precedence over the acquirement of timber, according to specifications such as quantity, weight, and type.
Missouri Taxes:
Missouri tax law specifies two distinct, yet broad categories of interest, which include that of personal tax forms and business tax forms. Each type encompasses a multitude of tax types that every Missouri resident and visitor will do well to familiarized themselves with. In terms of personal tax forms, "individual income tax compliance" comes to the forefront. This specifies that individuals in specified categories, such as that of lawyers and state workers, be held liable according to any delinquency found in the filing or payment of taxes. Penalties range from as minor as notification of specific departments to as serious as termination from ones place of employment or suspension ones professional license. Within the area of business tax forms, then, we will encounter that of corporation income tax. This type of tax is placed upon the monetary gains a corporation may have accumulated over the course of each tax year and must be accounted for if operations are to continue free from legal interventions.

Montana Taxes:

One of the most prevalent concerns that reside in the area of Montana state tax law is that of payment and filing delinquency. Due to such rising cause for remedy, an actual "delinquent taxpayer list" has been instituted in order to allow individuals to be notified as well as to remain a reminder of their current statuses according to the state. Despite this list, there does remain guilty individuals who escape such inclusion.

The removal as well as absence of certain individuals also delinquent in tax payments may be due to their enrollment in "department-approved" payment plans. These allow for those with more initiative, as well as a genuine desire to right there wrongs, to be afforded a viable option. The state's department of revenue is also placing their attentions on such a growing issue as it is reasserting its focus onto how these delinquency problems may best be tackled. Aside from these negative aspects to do with taxes, some more positive areas also exist, such as that of incentives in the form of credits connected to aspects of adoption and alternative energy production, for example.

Nebraska Taxes:

When filing personal income taxes in Nebraska, it is important to distinguish yourself in terms of residency. There categories of interest are that of a resident, nonresident, and "partial-year" resident. Residents must have lived in a permanent place of residence within the state for at least 6 months and nonresidents do not meet this criteria as a result. Partial-year residents, however, is an individual who may not be labeled as either a resident or nonresident for one whole year.

In reference to the sales taxes that all individuals must encounter while in Nebraska for any particular reason, it must be acknowledged that "local option" sales tax may also be present as an additional cost depending upon the county you are in. In addition, for retailers, there is a similar distinction such as that is existent between residents and others, and that is of instate versus out-of-state retailers. Once again, upon a foreign retailer meeting all classifications of an instate retailer, they may be placed in that same category.

Nevada Taxes:

Two important aspects of interest in direct relation to tax law within the state of Nevada include that of property and sales tax. The Division of Assessment Standards or DOAS, especially, maintains keen vigilance over the issues concerning property tax within the state. They are at the forefront in terms of collections of such property taxes, for instance.

These property taxes may be accounted towards the following areas: local government accounts, state general fund, low-income housing account, intergovernmental trust fund, school district, and plant industry program. When considering sales tax, we must be aware of both the placing and omission of labels including the terms specifying tax inclusion.

Regardless of its presence, each consumer must know that taxes will be placed as a part of their initial purchase as well each thereafter. Although Nevada sales tax maintains a firm base of 6.5%, numbers may vary depending on the locale in which you be present in at the time. This is due to the local institution of "option" taxes.

New Hampshire Taxes:

The state of New Hampshire places great emphasis on areas of taxation that many may often overlook. Examples include taxes on tobacco, excavation, and electricity consumption. Each of these represent aspects that may render little examination by the public at hand. In reference to tobacco tax, vendors must be aware of the legal requirement to have all cigarette packages stamped with a heating device. In addition, the lack thereof, will require the production and maintenance of various forms of documentation.

In general, taxes are imposed on cigarette packages depending upon the amount per pack, such as 20 versus 25. In terms of excavation, many may not be aware that you may be exempt from such a tax if you use earth excavated for other public land alterations, as well as if it occurs under the ownership of governing entity such as that of the state government. Electricity consumption also possesses an area for concern, especially in relation to the distribution companies. There exist specifications that may lessen tax law restrictions upon them if their customers are delinquent with payment, for instance.

New Jersey Taxes:

New Jersey, as a state comprised of quite a hefty population, also encompasses multitudes of specific qualifications in relation to its handling of its taxes. Four main areas of interest within the state include that of general gross income tax, property tax, sales/use tax, and corporation business tax.

When we reference gross income tax, the important part to remember is that there exist varying restrictions depending on how in which you choose to file, such as filing separately while being married versus jointly. Upon familiarizing ourselves with property tax, however, regulations increase to a great degree when we consider that property must first be assessed for value according to tax purposes prior to any determination on payment.

In addition, there exist exemptions for varying populations, such as that of senior citizens and veterans. In terms of sales tax, the base rate is that of 7%. Many products are free from taxation as well, however, such as clothing and consumable food products. In relation to the state's corporation business tax, one must know that such a tax is placed on the "net" income of a corporation. In addition, certain corporations may be wholly exempt from taxation. These include agricultural associations, nonprofit cemetery corporations, and sewage/water corporations.

New Mexico Taxes:

New Mexico finds itself in a very difficult position as it looks towards the future. Faced with a budget deficit, the state of New Mexico's economy offe

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