Questions about Sales Taxes

[erpowers]

Can anyone tell me where I can go to find out how much money is generated by sales taxes? I would also like to know what sales taxes generally pay for. Someone can either answer both of those questions for me or just tell me where to go to find the information.

[WCGreen]

1. Each state is different.

You can usually go to the state budget and find out fairly easy.

Remember, some states such as Ohio, allow communities to tack on more to the sales tax specifically for designated projects. Here in Cuyahoga County, we voted to tax ourself for a basically free stadium for the owners so that they would have lots of money to hire over priced and under talented, at least here in Cleveland, professional sports players.

[davsand]

2. In Illinois a lot of the sales tax revenue is a local use, but not all of it.

Every state is different in how they treat sales tax revenue, however, so don't take my response to mean that your particular state is run the same way.

I'd suggest a call to your local state representative's office. They should be much better equipped to give you accurate information.


Laura

[Winterblues]

3. Sales taxes are usually reserved for municipalities

States have the right to tax income as does the Federal Government, but the only way for municiplaities to raise capital is through property taxes and sales taxes. Possibly some user fees as well. They are used to fund local government..