State and local taxes are different from federal taxes in scope and subject matter. While state and federal income taxes exist, some taxes, such as sales and property tax, are exclusively assessed at a state or local level.
Some taxes, like sales tax, are applied at a flat rate at the time of purchase. Other local taxes, like property tax, are based on the value of an asset that is assessed annually.
The most common state tax applied is sales tax. Only five states in the U/S/ do not have a sales tax. Another common type of tax is property tax, which can be different from state to state or municipality to municipality.
There are certain deductions available depending on the region and tax. Often property taxes can be mitigated if the property is historical or set aside for development. For full details about what kinds of deductions and credits are made available in your area, a property law attorney should be consulted.Â
If an individual is found to have failed to comply with state or local laws there are a number of legal and financial ramifications. First, there are the financial penalties such as fines, garnishment of wages, or forced repayment of the outstanding amount. Additionally, there are also potentially penalties such as imprisonment for extreme or persistent incidents of noncompliance.
