State And Local Taxes Flashcards, test questions and answers

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What is State And Local Taxes?

State and local taxes are taxes imposed by state and local governments in the United States. These taxes can vary widely from state to state, with some states having no income tax at all, while others have multiple levels of taxation. For example, some states impose sales taxes on goods and services, property taxes on real estate, and even excise taxes on specific items such as cigarettes or alcohol.State and local taxes are generally used to fund public services such as education, healthcare, public safety, infrastructure projects, transportation systems as well as other public benefits. The amount of tax collected varies widely from state to state depending upon the type of tax being levied and the amount collected for each type of tax may also differ between cities within a single state. In addition to these types of taxation there are also other levies such as user fees which are typically charged in order to use certain services or facilities. In order to understand how much you may owe in terms of State or Local Taxes it is important to consult with a qualified accountant who can help determine your liability based upon your particular situation; however generally speaking most states will require individuals who earn income within their jurisdiction (through employment or business activities) to pay both income tax and applicable sales/use tax on purchases made within the State’s borders. In conclusion it is important for taxpayers to understand their individual obligations when it comes to paying State and Local Taxes; however understanding how much you owe in this area can be complicated so consulting with a qualified accountant is recommended in order ensure accurate filing of returns.