13 terms

ECON: Ch. 14.4 - State and Local Taxes and Spending

What states do not charge sales tax?
Alaska, Delaware, New Hampshire, Montana and Oregon.
Are buyers charged tax on food and/or prescription drugs?
Many states exempt food and prescription drugs from sales tax.
Are there other sales tax exemptions?
Charitable, religious and educational organizations are often exempt from paying sales taxes.
All states have excise taxes on what?
Cigarettes, alcohol, gasoline and diesel fuel.
Who or what may be exempt from excise taxes on fuel?
Certain government organizations, volunteer firefighting companies and farmers.
What are some examples of special sales taxes that affect tourists
Car rentals, hotels and motels.
What states do not have individual income tax?
Alaska, Florida and Texas. Nevada, South Dakota, Washington and Wyoming levy neither individual nor corporate income taxes.
Balanced Budget
Total government revenue from all sources is equal to total government spending. Required by all states except Vermont.
Operating Budget
Pan for day-to-day expenses. (Salaries, health and welfare benefits.)
Capital Budget
Plan for major expenses or investments. (Construction and maintenance projects on state buildings, roads and bridges.)
State Expenses
Education, public safety and public welfare.
Tax Assessor
Determines the value of property.
Local Spending
Public schools, public safety, public welfare, public utilities, public transit, sewage systems, trash removal, maintenance of roads/streets/highways, recreational and cultural facilities