Each State has established its own forms of
taxation that fit with the state's needs and best
taxing methods. Typically State taxes include
a basic mix of real estate property taxes, personal
property taxes excise taxes and either a sales tax
or income tax or both.
Although State Income taxes have become popular
in recent times, some states such as Florida and
Texas do not have income taxes. Instead, they
rely on a State sales tax along with use taxes such
as hotel room taxes, rental car taxes, toll roads
and other similar taxes. These taxes are aimed
at the users of services and tourists.
It is worth noting that California probably has
the largest mix of taxes of any State. The
result being that the State and local government tax
liability can exceed 50% or the income of many
Within States there can be special assessment
districts such as water, sewage, public transit or
school districts that levy their own taxes.
These taxes might be in the form of property taxes,
tolls, sales taxes and other fees.
The primary income for the general fund for most
states comes primarily from State taxes on income
and/or sales taxes.