Through the leadership of state government, every state has the authority to determine their tax structure to maximize their revenue. For most state governments, the involvement of citizens through lobbying or engagement can help determine taxes, particularly related to social services and education.
One tax, sales tax, occurs statewide in 45 states and is printed on consumer’s receipts. The percentage of sales tax charged, also varies. Many states have laws in place about not taxing groceries, or taxing them at a reduced rate.
Another tax, state income tax occurs in 41 states and also varies with income levels. Eight of these states impose a flat tax, meaning all workers pay the same amount of taxes. Among states with no state income tax and/or no sales tax, other taxes tend to be higher, such as property taxes or motor vehicle taxes. Many states with low property taxes have a higher sales tax, and vice versa. Property taxes are not only determined statewide, but can be determined by a town or city, school district, or county.