How do state and local cigarette and vaping taxes work? Q.How do state and local cigarette and vaping taxes work? A.State and local governments levy taxes on various tobacco products, including cigarettes, chewing and smokeless tobacco (often referred to as "other tobacco products"), and vaping products. State and local governments collected a combined $19 billion in revenue from tobacco taxes in 2021. Read more about How do state and local cigarette and vaping taxes work?
How do state pass-through entity taxes work? Q.How do state pass-through entity taxes work? A.A major revenue raiser from the 2017 Tax Cuts and Jobs Act was the $10,000 cap on the state and local tax (SALT) deduction. Because the cap applies to personal income taxes but not business income taxes, many states have enacted entity-level taxes on pass-through businesses, which can deduct that tax fully on their federal returns. Read more about How do state pass-through entity taxes work?
How do state and local revenues from fines, fees, and forfeitures work? Q.How do state and local revenues from fines, fees, and forfeitures work? A.Fines, fees, and forfeitures are financial penalties imposed for violations of the law. State and local governments collected a combined $13 billion in revenue from fines, fees, and forfeitures in 2021. Read more about How do state and local revenues from fines, fees, and forfeitures work?