How do state earned income tax credits work? Q.How do state earned income tax credits work? A.States typically structure their earned income tax credit (EITC) as a percentage of the federal EITC. In 2016, state EITCs varied from 3.5 to 40 percent of the federal credit. Some state EITCs are not refundable, which make them much less valuable to very low-income families who rarely owe income tax. Read more about How do state earned income tax credits work?
How do state and local property taxes work? Q.How do state and local property taxes work? A.Jurisdictions in all 50 states and the District of Columbia impose property taxes. Most property tax revenue comes from levies on land and improvements, but states often tax personal property (such as machinery, equipment, and motor vehicles) as well. The tax equals a percentage of the taxable value of the property and may be levied in some form at every level of government: state, county, municipal, township, school district, and special district. Read more about How do state and local property taxes work?
How do state and local severance taxes work? Q.How do state and local severance taxes work? A.Thirty-five states levy severance taxes, which are taxes on the extraction of natural resources (including oil and natural gas). The revenue from these taxes is extremely volatile because it rises and falls with the price and production of natural resources. Read more about How do state and local severance taxes work?
