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State TaxesState Taxes
As Governor, I'm responsible for providing services to our citizens. It's an awesome responsibility, one that's older than our federal constitution. As we all learned in our social studies classes, the states were here first, before there was even a Federal government. States have the power to make, collect, and spend their own taxes. Each state is unique, with its laws made by the legislatures and governors. There are fifty-one different tax programs-fifty states plus District of Columbia.
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1. Smile.
2. Don't cover your eyes with a hat.
3. Don't wear the shirt with the spaghetti stain.
4. Be sure you have nothing green stuck in your front teeth.
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What are the sources of our revenue? In this state, it's divided up into thirds. Approximately 1/3 comes from sales taxes, 1/3 comes from income taxes, and 1/3 comes from excise taxes, which are taxes imposed on tobacco, alcohol, gasoline, telephone services and other specific products.
Did You Know?
  • States cannot make any laws that interfere with interstate commerce.
  • Some states don't have individual income taxes on wages, and some don't have sales tax.
  • Public giving, in which individuals like you and me donate money, often provides a significant source of revenue for many hospitals, schools, and libraries.
  • Where do state tax dollars go? State highways and transportation projects, like the new system of bridges going up across the river, receive tax dollars. Universities and schools also get funding from the state, along with the state law enforcement system, including state courts, prisons, and police. The state pays for welfare and special services programs. We also fund state parks and recreation, and oversee professional license programs, given to such groups as drivers, doctors, lawyers, and barbers, to make sure they maintain proper standards of conduct and safety.
    Local Taxes Reporter's Challenge Find Out More Federal Taxes

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    Note: For more information and resources on this subject, go to the U.S. Tax Center.
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