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In my book, ALL taxes are bad taxes - but some are necessary, nonetheless. The Constitution clearly states which taxes are considered necessary and how they are to be imposed. This page is NOT about the evils of the IRS and the INCOME tax - which, despite the 14th Amendment, remains UN-Constitutional. That information may be found elsewhere on this site. What this page is for is the illumination of the immensity of taxes imposed on the American Citizen, the abusive use and misuse of taxation, and the overstepping of Constitutional restraint by the government. And how they did it. To see how they are wasting the funds wrenched from the working Citizens, visit "The Great American Giveaway" page.

Below are the "obvious" taxes that you pay, listed by state. Keep in mind this listing is in no way exhaustive. There are many many other direct-to-consumer taxes - these are just the obvious ones. There are also "hidden" taxes to be considered which drive up the cost-to-consumer before they even get to the retail (or wholesale) distributors.

State Tax Rates (January 1, 2008)

* - indicates exempt from tax, blank indicates subject to general sales tax rate.
**- percent of Federal Taxable Income
***- percent of federal adjusted gross income
Source: Compiled by FTA from various sources.
(1) Some states tax food, but allow a rebate or income tax credit to compensate poor households. They are: HI, ID, KS, OK, SD, and WY.
(2) Includes statewide local tax of 1.0% in California and 1.0% in Virginia.
(3) Tax rate may be adjusted annually according to a formula based on balances in the unappropriated general fund and the school foundation fund.
(4) Food sales are subject to local sales taxes.
(5) Sales tax rate increased from 5% to 6% on 1/3/2008.
(6) Sales tax rate is scheduled to increase to 4.5% on 10/1/2008.
(7) Food sales exempt through 6/30/2008.
(8) Tax rate on food is scheduled to fall to 3% on 7/1/08. Food subject to local tax.

PROPERTY TAXES

ALABAMA [Property Tax Division]
All taxable Real and Personal property, with the exception of Public Utility property, is assessed on the local level at the county courthouse with the county assessing official.  Four Classes of property are taxed at four different rates:
I - 30% : All property of utilities used in the business of such utilities
II - 20% : All property not otherwise classified
III - 10% : All agricultural, forest and single family, owner occupied residential property, including owner occupied residential manufactured homes located on land owned by the manufactured home owner, and historic buildings and sites
IV - 15% : All private passenger automobiles and motor trucks of the type commonly known as "pickups" or "pickup trucks" owned and operated by an individual for personal or private use and not for hire, rent, or compensation

Inheritance and Estate Taxes
Federal legislation passed in 2001 authorizes the elimination of the federal estate and gift tax by 2009 and its reinstatement in 2011, as provided in current federal law. Alabama’s filing requirement is based on the federal estate tax credit allowed under the federal estate tax law. As a result of the federal tax changes enacted in 2001, Alabama’s federal estate tax credit has been reduced proportionately over a four-year period, with the final phase-out of the credit effective Jan. 1, 2005. Therefore, estates where the decedent’s date of death is after Dec. 31, 2004, or before Jan. 1, 2011, are not required to file with Alabama.

ALASKA [Taxation & Assessment]
Alaska is the only state in the United States where a large part of the land mass is not subject to a property tax. Although property tax is the primary method of raising revenues for most of the larger municipalities in the state, smaller municipalities favor a sales tax. This is due primarily to the fact that the smaller incorporated areas lack a tax base large enough to support the property tax. The unincorporated areas of the state do not have the legal authority to levy a tax.

Twelve of the sixteen organized boroughs levy a property tax. Only thirteen cities outside of organized boroughs levy a property tax. These twenty-five municipalities can be found on the Directory of Taxing Jurisdictions.

No personal property taxes.

Inheritance and Estate Taxes
Alaska levies the estate tax on the transfer of an estate upon death; however, the state estate tax is tied to the federal state credit which was phased out in 2005.  State returns are required only for estates of decedents whose date of death is before January 1, 2005 and the estate has a federal filing requirement.

ARIZONA [AZ Dept. of Revenue]
Property taxes in Arizona are imposed on both real (by county assessors) and personal property. Low Income Single homeowners 65+ eligible for a tax credit and some exceptions.

Personal property (all property, except real estate, including that used for commercial, industrial & agricultural purposes, considered to be movable & not permanently attached to real estate) is taxed. Manufactured housing (mobile homes) is also personal property unless the owners file an affidavit affixing the unit to their real estate. SEE: AZ Dept. of Rev. Pub 545

Property tax on household goods or intangible personal property
Arizona does not have a property tax on household goods or intangible personal property.

Vehicle Tax
The fee to obtain a driver license is between $10 and $25. You can determine how much it will cost you at the Motor Vehicle Department web site. The fee to register your vehicle is generally less than $10, but there is an additional vehicle license tax (VLT) assessed at the time of registration. This is the equivalent of the personal property tax charged by other states. The more valuable your vehicle, the higher the VLT will be. You can see the formula for the computation here.

Inheritance and Estate Taxes
No inheritance tax
Estate tax limited to federal estate tax collection.

ARKANSAS [General Taxpayer Information]
Arkansas property taxes are levied by counties, municipalities, and school districts.
All households are eligible for a refund of up to $300 regardless of income or age. Political Personal property assessment based on 20 percent of the true market value.

Inheritance and Estate Taxes
No inheritance tax
Estate tax limited to federal estate tax collection.

CALIFORNIA [State Board of Equalization]
Unless the California Constitution or federal law specify otherwise, all property is taxable. Property is defined as all matters and things—real, personal, and mixed—that a private party can own. Real property, interests in real property, and taxable possessory interests are taxable in the county where they are located, regardless of where the owner lives.

Property tax calculated at 1 percent of the “taxable” value of the property. Article XIII A of the California Constitution (Proposition 13) also permits adding to the 1 percent tax rate a rate needed to pay interest and redemption charges for voter-approved indebtedness. Such additional rates will vary from area to area throughout the state. Statewide, the total tax rate ranges between 1 percent and 1.06 percent.

Inheritance and Estate Taxes
No inheritance tax.
Limited California estate tax related to federal estate tax collection.

COLORADO [State and Local Taxes in Colorado]
County assessor determines the value of property using a market, cost or income approach.

Inheritance and Estate Taxes
No inheritance tax
Estate tax limited to federal estate tax collection.

CONNECTICUT [Connecticut Conference of Municipalities]
The property tax is administered by each city and town - of which there are 169 in Connecticut - is responsible for its own budget. Each year, budgets are calculated during May or June. By July 1, the budget is more or less set in stone.

To pay for the budget, the town looks at its grand list - a ledger of assets located within that town on October 1 of the prior year - and the aggregate assessed value of those assets to determine a mill rate. Depending on the town budget, these mill rates can be prohibitive or even punishing. You may contact the Office of Policy and Management, the state agency with oversight authority of the property tax.

Inheritance and Estate Taxes
Estate tax on the transfer of estates valued $2+ million - progressive rate of 5 to 16 percent.

DELAWARE [Delaware Property Tax Rates 2008-09]
Real property taxes in Delaware are imposed at the local level to fund municipal and
county governments as well as school districts. There are no state level property taxes in
Delaware; only real property is subject to taxation. With certain exceptions, tax rates are
the same for all types of property including residential, industrial and commercial.
Exceptions include property tax incentives (reductions or abatements) for seniors and
certain types of businesses which locate in the state. Also, agricultural land may be
treated differently in some jurisdictions.

The three Delaware counties have different dates of assessment; they tax a different
proportion of that assessment, and they tax at different rates. Municipal and school
district rates also vary throughout the state. With a few exceptions, municipalities and
school districts use the county property assessment and assessment ratios when imposing
property taxes.

No personal, tangible or intangible property tax.

Inheritance and Estate Taxes [Income, Inheritance and Estate Taxes]
In July 2005 the legislature eliminated the requirement to file a Delaware estate tax return for dates on which the federal estate tax law does not allow a credit for state death tax (currently 2005 through 2010). It also eliminated the special lien on the gross estate tax if the decedent dies on a date on which the federal estate tax does not allow credit for state death taxes paid.

DISTRICT OF COLUMBIA [Office of Tax and Revenue]
The Office of Tax and Revenue's Real Property Tax Administration is responsible for property assessments, ownership and address changes, tax billings, tax relief program administration, and land recordation for real property in the District of Columbia. Property is assessed at 100% of market value. Taxes on owner-occupied real estate are $0.85 per $100 of assessed value. The first $64,000 of assessed value (homestead deduction) is exempt from taxes. Several property tax relief programs are available

Inheritance and Estate Taxes
There is no inheritance tax and only a limited estate tax.

FLORIDA [Property Tax Oversight Program]
With 10.92 million parcels of real, personal and centrally assessed property statewide, valued at $2.4 trillion, nearly $30.4 billion was levied by cities, counties, school districts and other taxing authorities statewide; The 2006 statewide average level of assessment was 96.5%.

The Property Tax Oversight Program reviews and approves the property tax rolls for each of Florida’s 67 counties every year.  This oversight process includes a comprehensive statistical analysis of recent sales data, market trends and property appraisals, as well as procedural reviews and audits of property appraiser practices and activities.

Inheritance and Estate Taxes
No inheritance tax
Limited estate tax.

GEORGIA [Dept of Revenue]
All real property and all personal property are taxable unless the property has been exempted by law.  (O.C.G.A. 48-5-3) Real property is land and generally anything that is erected, growing or affixed to the land; and personal property is everything that can be owned that is not real estate. Combination of county, city, school or state taxes depending on location. Real property is taxable in the county where the land is located, and personal property is taxable in the county where the owner maintains a permanent legal residence unless otherwise provided by law.  (O.C.G.A. 48-5-11)

Inheritance and Estate Taxes
No inheritance tax
Limited estate tax.

HAWAII [Tax Foundation of Hawaii]
On real property, land and improvements, assessments are at 100% of "fair market value." Owner-occupied homeowner exemption amounts may vary by county. Personal property, e.g. cars or boats, not subject to property tax.

Inheritance and Estate Taxes
No inheritance tax
Limited estate tax.

IDAHO [State Tax Commission]
Tax is determined from the budget needs of the taxing districts. Many kinds of taxing districts exist in Idaho. Some, like cities and counties, levy taxes to provide services, others levy taxes for specific purposes like highways, schools, or fire protection. Officials for each taxing district determine the annual budget needed to provide the district’s services. The part of the approved budget to be funded by property tax is divided by the total taxable value of all properties within the district. The result is the district’s tax rate (or levy). This rate, multiplied by the taxable value of the property, determines the amount of taxes owed to that district. Each property is located within several independent taxing districts. The property tax bill will include taxes for all these districts. The tax rate for a taxing district is the same for all taxable properties within that taxing district.

In 2008, the average urban property tax rate was 1.179 percent. This compares to 1.14 percent for 2007. In 2008, the average rural rate was 0.781 percent, which compares to 0.752 percent for 2007. Most taxing districts have maximum tax rates they can charge. Districts other than schools are limited to annual increases of 3 percent plus an allowance for growth on a portion of their budgets. The growth allowance is calculated from the value of new construction and annexation that occurred during the prior year.

If you are a qualified Idaho homeowner, you may be eligible for the 2009 Property Tax Reduction program. This program may reduce property taxes on your home and up to one acre of land by as much as $1,320.

Inheritance and Estate Taxes
No inheritance tax, gift tax or estate tax.

ILLINOIS [Illinois Property Tax System]
The property tax is a local tax imposed by local government taxing districts (e.g., school districts, municipalities, counties) and administered by local officials (e.g. township assessors, chief county assessment officers, local boards of review, county collectors). Property taxes are collected and spent at the local level.

Only real property is taxed in Illinois. The 1970 Illinois Constitution directed the legislature to abolish personal property taxes and replace the revenue lost by local government taxing districts, including school districts.

By law, most real property is assessed at 331/3 percent of market value. There are some exceptions to this rule, however.

Farm acreage is assessed based on its ability to produce income, which is called its agricultural economic value. A farm building is assessed at one-third of the value that it contributes to the farm’s productivity.

Counties that have a population of more than 200,000 may classify property for assessment purposes. Cook County is the only county that has adopted such a system; it has 13 classes of property. The county ordinance specifies assessment levels from 16 percent of market value (residential property) to 38 percent of market value (commercial property).

Developed coal is assessed at 331/3 percent of its coal reserve economic value.

Illinois statutes provide alternate valuation procedures or exemptions for certain qualifying properties.

Inheritance and Estate Taxes
No inheritance tax
Limited estate tax.

INDIANA [Department of Local Government Finance]
Property taxes in Indiana are administered at the local level with oversight by the Indiana Department of Local Government Finance. More than 99 percent of the revenue generated by property taxes remains in the community in which they are collected. Property taxes represent a property owner’s portion of the local government’s spending in a given year. Property taxes in Indiana are paid in arrears, meaning the taxes paid in the current year represent the taxes owed for the previous year.

Current tax rates
Searchable listing of county auditor contact information providing the most accurate information on individual property taxes.

A circuit breaker program limits taxes to 2% of their property value.

Personal property taxes are levied against equipment used in the production of income or held as an investment; billboards; foundations for the equipment; and all other tangible property other than real property. Computer application software is considered an intangible asset and is not assessable. Inventory is no longer taxed.

Inheritance and Estate Taxes
Inheritance tax ranges from 1-10% based on fair market value of property transferred at death.
Estate tax is the amount by which federal credit exceeds inheritance taxes paid to all states.

IOWA [Department of Revenue]
Property tax is primarily a tax on "real property," which is mostly land, buildings, structures, and other improvements that are constructed on or in the land, attached to the land, or placed upon a foundation.

Property tax supports many different "taxing authorities." Cities, counties, school districts, and townships are the most common. Taxing authorities may also include community college districts, agricultural extension districts, assessor offices, hospital districts, and sanitation districts. In addition, there are associations for fire protection, drainage, and other public needs that levy taxes.

Iowa has more than 2,000 taxing authorities. Most property is taxed by more than one taxing authority.

Personal Property is exempt.

Inheritance and Estate Taxes
Inheritance tax ranges from 1-15% depending on the amount of the inheritance and the relationship of the recipient to the decedent. Surviving spouses exempt.

KANSAS [Department of Revenue]
The Kansas Property Valuation Division exercises general supervision over ad-valorem policies and procedures, conducts the valuation of state appraised properties and provides concise and timely property tax information. Property is assessed by county appraisers and collected at the county level.

2009 PERSONAL PROPERTY VALUATION GUIDE: Kansas law states that all real property and personal property in this state, not expressly exempt, is subject to taxation. All tangible personal property owned as of January 1st must be listed in the name of the owner, with the county appraiser each year for taxation purposes. The statutory definition of personal property is “… every tangible thing which is the subject of ownership, not forming part or parcel of real property…”.

Inheritance and Estate Taxes
After 2009 no estate tax.

KENTUCKY [Department of Revenue]
Property tax is levied on the fair cash value of all real, tangible or intangible property unless a specific exemption exists in the Kentucky Constitution or in the case of personal property, has been granted by the General Assembly. 2008 - (Current) Property Tax Rates

Inheritance and Estate Taxes
Kentucky has an inheritance tax but all Class A beneficiaries (spouse, parent, child, grandchild, brother, and sister) are exempt. As for the estate tax, if the total amount of the estate is less than the federal applicable exclusion, federal estate and gift tax is not due.

LOUISIANA [Louisiana Property Tax Basics]
The Louisiana Constitution and Revised Statutes mandate that property subject to ad valorem taxation be listed at its assessed valuation, which shall be a percentage of its fair market value. This is called the fractional level of assessment. These laws dictate that all land - commercial and residential - is assessed at 10% of market value. Residential buildings are assessed at 10% and commercial buildings at 15% of market value. Commercial personal property, also know as movable property, is assessed at 15% of market value.

The State Constitution provides that bona fide agricultural, horticultural, marsh, and timber lands are to be assessed at 10% of “use value” rather than fair market value. In the case of agricultural, horticultural and timber lands, the property must be at least three acres in size or have produced an average gross annual income of $2,000 or more for the four preceding years. The use value of these lands is determined by the productivity of the land.

Inheritance and Estate Taxes
Heirs pay tax on the taxable value of their inheritance, legacy, & donation or gift in contemplation of death, at rates determined by their relationship to the deceased. If the amount of inheritance taxes is less than the amount of the maximum credit for state death taxes in IRC Section 2011(b), Louisiana levies an additional Louisiana estate transfer tax, equal to the amount by which the maximum credit provided in IRC Section 2011(b) exceeds the amount of inheritance taxes levied.

MAINE [Homeowner's Guide to Property Tax in Maine]
Both real (land and buildings) and personal property (tangible goods) are subject to taxation, unless they are exempted by law or subject to another form of taxation, such as the excise tax for motor vehicles and boats. Since home furnishings are largely exempt from personal property taxes, the property tax bill for most Maine homeowners is based on the value of the land, the house, and the outbuildings.

The Maine Constitution says that property shall be assessed at its "just value." The courts have interpreted "just value" to mean fair market value or in other words "what the property is worth." A property’s worth is commonly looked at as "what a willing buyer would pay a willing seller" for a particular piece of property.

In calculating a property tax rate, the legislative body of the municipality (town meeting or council) determines the amount of revenue needed to be raised by the property tax to fund municipal services. That amount is then divided by the total local assessed valuation to get the local tax rate. The municipal assessor(s) calculates how much must be raised in property taxes based on what the legislative body has approved. A tax commitment listing all the property in town, its value and the taxes that are owed is then signed by the municipal officers and given to the tax collector who sends out the tax bills.

Inheritance and Estate Taxes
No inheritance tax.
Estate tax exempt up to $1,0000,000.

MARYLAND [Homeowner's Guide to Property Taxes and Assessments]
The property tax is primarily a local government revenue. Counties and cities depend on the property tax and a portion of the income tax to make up their budgets. The property tax makes up about 30% of the average county budget and over 35% of the average city budget. State government is primarily funded by the income tax and the sales tax. Less than 10% of the property tax goes to the State. Article 15 of the Declaration of Rights of Maryland's Constitution requires that all property be assessed and taxed uniformly. State law specifically requires that all taxable property shall be assessed based on its fair market value.

Property tax rates vary widely - current county and municipal tax rates. No restrictions or limitations on property taxes are imposed by the State, enabling cities and counties to set tax rates at the level required to fund governmental services. These rates can increase, decrease, or remain the same from year to year. If the proposed tax rate increases the total property tax revenues, the governing body must advertise that fact and hold a public hearing on the new tax rate. This is called the Constant Yield Tax Rate process.

Inheritance and Estate Taxes
The inheritance tax is imposed on the clear value of property that passes from a decedent to some beneficiaries. The tax is levied on property that passes under a will, the intestate laws of succession, and property that passes under a trust, deed, joint ownership, or otherwise. The tax is collected by the Register of Wills located in the county where the decedent either lived or owned property.

* Property passing to a child or other lineal descendant, spouse of a child or other lineal descendant, spouse, parent, grandparent, stepchild or stepparent, siblings or a corporation having only certain of these persons as stockholders is exempt from taxation.
* 10 percent on property passing to other individuals. For more information about the inheritance tax, contact the Register of Wills in the appropriate county.

Estate tax return must be filed if the decedent's federal gross estate, plus adjusted taxable gifts, is $1,000,000 or greater, and the decedent was either a resident of Maryland at the time of death or a nonresident who owned real or tangible personal property in Maryland. The tax rate is limited to 16 percent of the amount that the estate value exceeds $1,000,000.

MASSACHUSETTS [Department of Revenue]
The Massachusetts website makes it very difficult to find information. Apparently, 91 out of 351 towns have approved real estate and personal property tax rates ranging from 2-17% for real estate and up to 29% for personal property. Property Tax Rates (Fiscal Year)

All personal property situated in the commonwealth is subject to tax, unless specifically exempt by law. The boards of assessors in each city and town assess personal property taxes on all personal property subject to tax situated within their communities. The tax is calculated by multiplying the assessed value of the property by the personal property tax rate of the city or town. Personal property is assessed separately from real estate. Personal Property FAQs

Inheritance and Estate Taxes
No inheritance tax
Estate Taxes - For dates of death occurring on or after January 1, 2003, the Massachusetts estate tax is “decoupled” from the federal estate tax system. For these dates of death, the Massachusetts estate tax is imposed on estates using the Internal Revenue Code in effect on December 31, 2000. For estates of decedents dying after 2002, the applicable exclusion amount was $700,000 in 2003 and increased to $1,000,000 in 2006.

MICHIGAN [Department of Treasury]
Property assessed at 50% of its true cash value. Proposal A, which was approved on a statewide ballot in 1994, set certain property tax changes into the Michigan Constitution. Proposal A limited the yearly property tax increase to be equal to the lesser of the general price level (Inflation Rate Multiplier) or 5%.

The Millage Rate database and Property Tax Estimator allows individual and business taxpayers to estimate their current property taxes as well as compare their property taxes and millage rates with other local units throughout Michigan.

Inheritance and Estate Taxes
No inheritance tax
Estate tax limited to federal estate tax collection.

MINNESOTA [Department of Revenue]
The Minnesota website also makes it very difficult to find information. Property taxes apparently based on market value & assessed by county. No telling how personal property is taxed - but it is. Oh yeah - the State AND local communities each assess a property tax.

Inheritance and Estate Taxes
No inheritance tax
In 2005 the federal 706 changed the credit for death taxes paid to states, to a line item “Deduction of death taxes paid to states”. Minnesota does NOT allow this deduction in the computation of estate tax due to Minnesota If, on the date of death, the decedent’s total gross estate is at least $950,000, the estate is required to file a Minnesota Form M706, even if the estate is not required to file a federal return.

MISSISSIPPI [State Tax Commission]
All property is subject to a property tax unless it is exempt by law. The various taxing entities where the property is located levy the tax. This includes the county, municipality, and school districts. Each taxing entity determines the amount of money needed and the local officials calculate the tax rate necessary to raise that revenue.

Household personal property belonging to individuals is exempt from property tax. Individuals do pay property taxes on motor vehicles when they register (obtain a tag or license plate) their vehicle. Personal property such as inventory, furniture and fixtures, and machinery and equipment used in trade or manufacture are subject to property tax.

The assessment ratios for property are set by the Mississippi Constitution. Properties are divided into five classes, each with its own assessment ratio. They are:
Class I. Single-family, owner-occupied, residential real property, at ten percent (10%) of true value.
Class II. All other real property, except for real property included in Class I or IV, at fifteen percent (15%) of true value.
Class III. Personal property, except for motor vehicles and for personal property included in Class IV, at fifteen percent (15%) of true value.
Class IV. Public utility property, which is property owned or used by public service corporations required by general laws to be appraised and assessed by the state or the county, excluding railroad and airline property and motor vehicles, at thirty percent (30%) of true value.
Class V. Motor vehicles, at thirty percent (30%) of true value.

Inheritance and Estate Taxes
No inheritance tax.
Estate tax imposed on the value of a decedent's estate exceeding $1,000,000.

MISSOURI [Assessor's Manual] [State Tax Commission]
Residential property taxed at 19% of its fair market value.
Personal property taxed at rates ranging from 5-33.3%.

Inheritance and Estate Taxes
No estate tax imposed

MONTANA [Department of Revenue] [Understanding Property Taxes]
The Department of Revenue is responsible for ensuring that all property in the state is treated fairly. The department's duties include the appraisal, assessment and equalization of the value of all property in the state for the purpose of taxation. Most real estate, improvements, and personal property are appraised by Department of Revenue employees in regional offices. The department maintains a presence in each county.

Real property is based on 100% of its fair market value, then reduced by a phase-in factor and taxed as a percentage thereof.

Personal property is also taxed, the most common being motor vehicles.

Inheritance and Estate Taxes
No inheritance tax and no estate.

NEBRASKA [Department of Revenue]
All real property is to be valued at actual value, except for agricultural and horticultural land, which is to be valued at 75% of actual value; agricultural special value is to be valued at 75% of special value, recapture shall be at actual value; and historically significant real property which qualifies for the historically significant valuation program.

The taxes for a real property parcel are determined by multiplying its taxable value by the total consolidated tax rate for the tax district in which the parcel is located. The tax district is comprised of various governing bodies empowered to levy property taxes for services, such as county government, school district, city, etc.

The rate of tax on the various classes of property and the establishment of the actual classes is a function of the legislature. There are currently twelve classes of property. Local governments determine the mill levy requirements for each taxing jurisdiction. These mill levy requirements include state mills. Using those mill levy determinations, Department of Revenue staff calculate the property tax liability for each property including special district fees and charges.

Inheritance and Estate Taxes
Nebraska's inheritance tax, which is collected at the county level, applies to bequests, devises, or transfers of property or any other interest in trust or otherwise having characteristics of annuities, life estates, terms for years, remainders, or reversions. Nebraska inheritance tax is computed on the fair market value of such annuities, life estates, terms for years, remainders, and reversions. The fair market value is the present value as determined under the provisions of the Internal Revenue Code of 1954, as amended, and its applicable regulations with respect to estate tax. The Nebraska estate tax and generation-skipping transfer tax have been repealed for decendents dying or transfers made on or after January 1,2007.

NEVADA [Department of Taxation]
All property in the state is subject to tax by the state, counties, cities, towns, and school districts. Property taxes are applied to property of every kind and nature, including real and personal property. The assessed valuation for tax purposes is based on 35% of the fair market value of the property and is revalued every five years. The Senior Citizens Property Tax Assistance Act is administered by the Nevada Division of Aging Services. Homeowners 62 and older who earn $24,016 or less are eligible for a rebate of up to $500 or up to 90% of taxes paid. The program is also available to older taxpayers who, through rent payments, pay a disproportionate amount of their income on property taxes. Call 775-687-4892 for details.

The Division of Assessment Standards (DOAS) is responsible for administering various property tax programs and providing oversight to the financial administration of local governments. DOAS is located in Carson City and consists of six (6) sections.

Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax related to federal estate tax collection.

NEW HAMPSHIRE [Department of Revenue Administration]
Local property taxes, based upon assessed valuation, are assessed, levied and collected by municipalities.

A state education property tax rate of $2.24 (2007) per $1,000 of total equalized valuation is assessed on all New Hampshire property owners. It will be $2.14 for tax year 2008.

Inheritance and Estate Taxes
No inheritance or estate tax.

NEW JERSEY [Division of Taxation]
New Jersey's real property tax is an "ad valorem tax," or a tax according to value. All real property is assessed according to the same standard of value except for qualified agricultural or horticultural land. The standard measure of property value is "true value" or market value, that is, what a willing, knowledgeable buyer would pay a willing, knowledgeable seller on the open market at a bona fide sale. Real property is required to be assessed at some percentage of true value established by the county board of taxation in each county. All 21 counties in New Jersey have chosen 100%.

County, municipal and school budget costs determine the amount of property tax to be paid. A town's general tax rate is calculated by dividing the total dollar amount it needs to raise to meet local budget expenses by the total assessed value of all its taxable property. An individual's property taxes are then calculated by multiplying that general tax rate by the assessed value of his particular property. Because of New Jersey's strong "home rule" concept of government, the State does not participate in the making of local budgets, nor does it receive any of the property taxes collected.

Inheritance and Estate Taxes
New Jersey imposes a transfer inheritance tax, at graduated rates ranging from 11% to 16%, on the transfer of real and personal property having a total value of $500 or more which passes from a decedent to a beneficiary. If a decedent's death occurs on or after July 1, 1988, property passing to a decedent's surviving spouse, surviving parents, grandparents, children, stepchildren or grandchildren is entirely exempt from the tax.

In addition to the inheritance tax, New Jersey imposes a separate estate tax. An estate may be subject to the New Jersey Estate Tax even though there is no New Jersey Inheritance Tax payable. For decedents with a date of death prior to January 1, 2002 the New Jersey Estate Tax was designed to absorb the maximum credit for state inheritance, estate, succession or legacy taxes allowable in the Federal estate tax proceeding. It did not increase the estate's total estate tax obligation. For decedents with a date of death on or after January 1, 2002 the New Jersey Estate Tax was decoupled from the Federal estate tax proceeding.

The New Jersey Estate tax is based upon the Federal Estate tax credit for state death taxes which was allowable under the provisions of the Internal Revenue Code in effect on December 31, 2001. The Federal Estate tax does not have a provision providing a deduction for property passing to a domestic partner.

NEW MEXICO [Property Tax Division]
All property is subject to valuation for property taxation purposes under the Property Tax Code [Articles 35 to 38 of Chapter 7 NMSA 1978] if it has a taxable situs in the state. Property has a taxable situs [Section 7-36-14 NMSA 1978] in the state if:

(1) it is real property and is located in the state;
(2) it is an interest in real property and the real property is located in the state;
(3) it is personal property and is physically present in the state on the date when it is required to be valued for property taxation purposes.

In addition, the following tangible personal property owned by a person is subject to taxation under the Property Tax Code [Articles 35 to 38 of Chapter 7 NMSA 1978]:

(1) livestock;
(2) manufactured homes;
(3) aircraft not registered under the Aircraft Registration Act [64-4-1 to 64-4-15 NMSA 1978];
(4) private railroad cars, the earnings of which are not taxed under the provisions of the Railroad Car Company Tax Act [7-11-1 to 7-11-12 NMSA 1978];
(5) tangible personal property subject to valuation under Sections 7-36-22 through 7-36-25 and 7-36-27 through 7-36-32 NMSA 1978;
(6) vehicles not registered under the provisions of the Motor Vehicle Code [Articles 1 to 8 NMSA 1978, except 66-7-102.1 NMSA 1978] and for which the owner has claimed a deduction for depreciation for federal income tax purposes during any federal income taxable year occurring in whole or in part during the twelve months immediately preceding the first day of the property tax year; and

Other tangible personal property subject to taxation but not specified in Paragraphs (1) through (6):

(a) that is used, produced, manufactured, held for sale, leased or maintained by a person for purposes of the person's profession, business or occupation; and
(b) for which the owner has claimed a deduction for depreciation for federal income tax purposes during any federal income taxable year occurring in whole or in part during the twelve months immediately preceding the first day of the property tax year.

Inheritance and Estate Taxes
No inheritance tax but an inheritance may be reflected in a taxpayer's modified gross income and taxed that way. The estate tax is related to federal estate tax collection.

NEW YORK [Office of Real Property Services]
In New York State, the real property tax is a tax based on the value of real property. Counties, cities, towns, villages, school districts, and special districts each raise money through the real property tax. The money funds schools, pays for police and fire protection, maintains roads, and funds other municipal services enjoyed by residents.

In New York State, there is no personal property tax, which is a tax on personal items, such as cars and jewelry.

Inheritance and Estate Taxes
There is no inheritance tax. Regarding the estate tax, the estate must file a New York State estate tax return if any one of the following conditions are met: (1) The decedent was domiciled in New York State at the time of death and the total of the federal gross estate, federal taxable gifts and specific exemption exceeds $1 million; (2) The decedent was not domiciled in New York State at the time of death and the estate includes real or tangible personal property with a situs in New York State, and the total of the federal gross estate, federal taxable gifts and specific exemption exceeds $1million; or (3) The decedent was neither a resident nor a citizen of the United States, the estate includes real or tangible personal property with a situs in New York State, and the estate is required to file a federal estate tax return.

NORTH CAROLINA [Department of Revenue]
The three main elements of the property tax system in North Carolina are real property, personal property, and motor vehicles. Real property consists of land and buildings. Personal property consists of, for this guide, tangible personal property or all personal property that is not intangible and is not permanently affixed to real property. Motor vehicles, if registered, are assessed according to its registration renewal date. All property, real and personal, is subject to taxation and is assessed based on 100% of appraised value. Taxes are collected by cities and counties.

Inheritance and Estate Taxes
No inheritance tax
Estate tax is related to federal estate tax collection.

NORTH DAKOTA [Office of State Tax Commissioner]
All real property, unless specifically exempted, is subject to property tax. The tax is due January 1 of each year following the year of assessment and is payable without penalty until March 1. A 5% discount is allowed for taxes paid in full by February 15. A mobile home used as a residence or business is subject to tax if it is 27 or more feet long or is attached to utility services. The tax is due January 10 of the year of assessment or ten days after the home is purchased or first moved into this state. A 5% discount is allowed for taxes paid in full by February 15 or within 30 days after the mobile home is purchased or moved into this state. The county determines and collects real property and mobile home taxes and distributes the revenue to the county, cities, townships, school districts, and other taxing districts. Residential property is taxed as 9% of assessed value.

Inheritance and Estate Taxes
No inheritance tax. It was repealed in 1927 and replaced with an estate tax. There is an estate tax based on a decedent's total gross estate and limited to the credit for state death taxes allowed on the Federal 706 estate tax return.

OHIO [Department of Taxation]
The real property tax base is the taxable (assessed) value of land and improvements. The taxable value is 35 percent of true (market) value, except for certain land devoted exclusively to agricultural use.

Real property tax rates are levied locally and vary by taxing jurisdiction. The total tax rate for any particular parcel includes all levies either enacted by a legislative authority or approved by the voters of all taxing jurisdictions in which the property is a part. Examples of such jurisdictions include school districts, counties, municipalities, townships, and special service districts. Each unique combination of these taxing jurisdictions creates a separate taxing district.

Inheritance and Estate Taxes
No inheritance tax
Estate tax levied against the value of a resident decedent's gross estate less deductions and exemptions.

OKLAHOMA [Oklahoma Property Taxes]
Property taxes are local taxes. County officials value property, set tax rates and collect taxes. However, state law governs how the process works. All tangible property must be taxed on its current market value. The exception is agricultural land. Land used for farming and ranching is valued on its capacity to produce crops or livestock, instead of its value on the real estate market. The Oklahoma Constitution places a five percent limit on increases for real property valuation. Real property is assessed at an amount between 11-13.5% of its fair cash value.

Inheritance and Estate Taxes
No inheritance tax but there is an estate tax.
Estate tax is ½-10% of the net estate at the time of death and is independent of the federal estate tax. It also imposes an additional estate tax that is essentially designed to absorb any available federal estate credit for state death taxes. The amount of Oklahoma estate tax imposed depends on who gets what.

OREGON [Department of Revenue]
Property subject to taxation includes all privately owned real property (e.g., land, buildings, and fixed machinery and equipment), manufactured homes, and personal property used in a business. There is no property tax on household furnishings; personal belongings and automobiles; crops; orchards; business inventories; or certain intangible property such as stocks, bonds, or bank accounts.  

A business owning or possessing taxable personal property must file a Confidential Personal Property Return (form 150-553-004) with the assessor in the county where the property is located by March 1. If the assessor determines that the total value of the business's personal property in the county is less than $14,500, the assessor will cancel the assessment. This amount can change each year based on the U.S. City Average Consumer Price Index.

Inheritance and Estate Taxes
An Oregon inheritance tax return is required to be filed whenever a federal estate tax return (Form 706) is required to be filed. For a resident decedent, Oregon taxes real property and tangible personal property located in Oregon and intangible personal property wherever it is located. For a nonresident decedent, Oregon taxes real property, tangible personal property, and intangible personal property located in Oregon. An exemption is allowed for intangible personal property located in Oregon if a like exemption is allowed by the state of residence.

PENNSYLVANIA [Department of Revenue]
Property taxes in Pennsylvania apply only to real estate - land and buildings - and are not levied on cars, business inventory, or other personal property. Certain types of property are exempt from property taxes in Pennsylvania, including places of worship, places of burial, charitable and educational institutions and government property.

The state of Pennsylvania does not levy or collect taxes on real estate or personal property. Instead, those taxes are reserved for the local governments - counties, municipalities and school districts. In most areas of Pennsylvania all three groups will levy real estate or property taxes - with rates differing depending upon the county, school district and municipality. The tax cannot exceed 30 mills on the assessed valuation of the property without special permission from the courts.

Counties may levy an intangible personal property tax, which taxes stocks, bonds and other personal property taxpayers may own. Not all counties levy this tax.

Inheritance and Estate Taxes
Inheritance tax is calculated at a percentage of the value of the assets transferred which is determined by the relationship of the heir. Property owned jointly between husband and wife is exempt from the tax, while property inherited from a spouse, or from a child 21 or younger by a parent is exempt. The estate tax is related to federal estate tax collection.

RHODE ISLAND [Division of Taxation]
Rhode Island is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Rhode Island's localities collected $1,772.61 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Rhode Island collected only $1.39 per capita during FY 2006, making its combined state/local property taxes $1,774.00 per capita, which ranks 7th highest nationally.

Inheritance and Estate Taxes
No inheritance tax. Rhode Island imposes a tax on the transfer of the net value of the assets of every resident decedent and the value of real and personal property of nonresident decedents located within this state. The tax is apportioned in accordance with the location of the assets with actual situs (both real and persona property) in another state. The fraction is Rhode Island assets over total estate assets.

The Rhode Island estate tax is designed to absorb the federal estate tax credit for state death taxes. However, the state has decoupled from current federal estate tax laws and adopts the version of the Internal Revenue Code in effect on January 1, 2001. Estates of decedents who are declared missing in action by the armed forces of the United States are not subject to the state's estate tax.

SOUTH CAROLINA [Property Tax Guide]
The South Carolina Constitution provides for the following ratios to be applied to the market or use value of property to arrive at the assessed value:
- Your home (legal residence) 4%
- Second home (or any residential property where you do not live) 6%
- Agricultural real property (privately owned) 4%
- Agricultural real property (corporate owned) 6%
- Commercial real property 6%
- Manufacturing real and personal property 10.5%
- Utility real and personal property 10.5%
- Personal property 10.5%
- Motor Carriers, Railroads, Airlines and Pipelines real and personal property 9.5%

Inheritance and Estate Taxes
No inheritance tax
Estate tax is related to federal estate tax collection.

SOUTH DAKOTA [Property Tax Division]
Property is assessed at 85% of market value between counties and collected by local government entities.

Step One - Establishing the Value of Property - Because all property is not of equal value, individual values are arrived at based on the price the property would bring if sold. This selling price, determined by the sale price of comparable properties and known as the true and full value, is what establishes the value of the property.

Step Two -Establishing the Amount of Tax - The higher the cost of operating the city or school district, the larger the revenues required from property taxes. Revenues from property taxes, combined with other monies such as federal grants, must equal the size of the budget of the unit of government.

Step Three - Establishing a Tax Rate - The tax rate is based on steps one and two. The tax rate for all property in a local unit of government is arrived at by dividing the value of all the property into the amount of the budget that is unfunded from other sources.

Inheritance and Estate Taxes
No inheritance tax
Estate tax is limited & related to federal estate tax collection.

TENNESSEE [Division of Property Assessments]
Property Assessment function is distinct from taxation function. Assessor of Property appraises and classifies the property and then applies the statutory percentages to appraisals to determine assessments. County Commission and city governing bodies determine local property tax rates. Taxes are collected by county Trustee and city collecting officials. An appraisal is an estimate of the most probable selling price of a property.

Property is classified based on its use and statutory assessment percentages are applied to appraised values:
- Residential property 25%
- Farm property 25%
- Commercial and industrial property 40%
- Public utility property 55%
- Business personal property 30%

Property tax rate is established by the County Commission and city governing bodies. Assessor provides assessed value totals to county and city governing bodies. Total assessment and estimates of other revenue are combined with budget projections to determine the property tax rate. In a reappraisal year, if the local governing body intends to adopt a tax rate that would generate more revenue than the previous year, a public hearing must be advertised and held.

Inheritance and Estate Taxes
Inheritance and estate taxes are imposed on decedents' estates that exceed the maximum single exemption. Inheritance tax is due on the net estate as defined in Tennessee Code Annotated. Estate tax is based on the difference between the inheritance tax and the “state death tax credit” allowed on the federal estate tax return.

TEXAS [Window on State Government]
Property tax is imposed by local taxing units & is based on market value. More than 3,700 local governments in Texas — school districts, cities, counties and various special districts — collect and spend these taxes. Texas counties and local school districts tax all nonexempt property within their jurisdictions. You also may pay property taxes to a city and to special districts such as hospital, junior college or water districts.

The governing body of each of these local governments determines the amount of property taxes it wants to raise and sets its own tax rate. Most, but not all, local governments other than counties contract with their county’s tax assessor-collector to collect the tax on their behalf.

Inheritance and Estate Taxes
No inheritance tax
Estate tax is limited & related to federal estate tax collection.

UTAH [Property Tax Division]
Property taxes are assessed and collected locally. The taxable value of tangible personal property and real property except residential property is assessed at 100% of its fair market value, less any exemptions that may be permitted.

“Taxable Value” means “fair market value” less the residential exemption of 45%, if a property qualifies. If a property does not qualify for the residential exemption, then “taxable value” equals “fair market value.”

All personal property is taxable unless specifically exempted by the Utah Constitution. With one exception, market value equals taxable value for all taxable personal property. Manufactured/mobile homes are the exception. When used as primary residences they are eligible for the residential exemption.

Inheritance and Estate Taxes
No inheritance tax
Estate tax is limited & related to federal estate tax collection.

VERMONT [Department of Taxes]
Real estate taxes have two components; school property tax and municipal property tax. Both taxes are billed and collected by the town or city where the real estate is located.

A statewide education tax is imposed on all nonresidential and homestead property at the following rates: (1) the tax rate for nonresidential property is $1.36 per $100.00; and (2) the tax rate for homestead property is $0.87 multiplied by the district spending adjustment for the municipality, per $100.00, of equalized education property value.

The Municipal Property Tax is based on the town's grand list and is used to fund the town's services. The rate varies in each town depending on the funds needed to operate municipal services.

Inheritance and Estate Taxes
No inheritance tax
Estate tax is limited & related to federal estate tax collection.

VIRGINIA [Department of Taxes]
Property taxes are administered by the state's cities, counties and towns and are based on 100% of fair market value. Tangible personal property is also taxed at the local level and is based on a percentage of the original cost.

Inheritance and Estate Taxes
No inheritance tax.
No estate tax.

WASHINGTON [Homeowner's Guide to Property Tax]
State law requires that assessors appraise property at 100 percent of its true and fair market value in money, according to the highest and best use of the property. Real property includes land, improvements to land, structures, and certain equipment affixed to structures. Characteristics of
real property that influence the value include but are not limited to zoning, location, view, geographic features, easements, covenants, and the condition of surrounding properties..

Personal property includes furnishings, machinery and equipment, fixtures, supplies, and tools. Most personal property owned by individuals is specifically exempt. However, if these items are used in a business, personal property tax applies.

Property tax limitations restrict or limit increases to property tax rates. Two such limitations include the One-Percent Constitutional Limit and the Levy Limit.

Washington State’s Constitution limits the regular (non-voted) combined property tax rate that applies to an individual’s property to one percent
of market value ($10 per $1,000). Voter approved special levies, such as special levies for schools, are in addition to this amount.

The Levy Limit applies to a taxing district’s budget, and not to increases in the assessed value of individual properties. The limit is based on the population of the district as well as the district’s need to increase revenue. The law restricts taxing districts from collecting, in any year, more than a one-percent increase in its regular, non-voted levy over the highest amount that could have been levied since 1985. Because the Levy Limit does not include new construction, annexations, and voter approved excess levies, a taxing district’s actual revenue increase may be greater
than one percent.

Since various factors determine property tax rates, the amount of property tax due on comparable properties may vary throughout a county. The three main factors that determine the tax rate include:
- various combinations of taxing districts in different areas of the county
- budget amounts for each taxing district, and
- voter-approved special levies and bonds.

Inheritance and Estate Taxes
Washington replaced the inheritance tax in 1982 with an estate tax. A new Washington estate tax took effect May 17, 2005. Estates of decedents who die on or after May 17th are subject to the estate tax. This is a stand-alone tax that incorporates some provisions of the Internal Revenue Code as of January 1, 2005. However, the Washington estate tax is not affected by the termination of the federal estate tax in 2010. The new law allows an exemption of $2 million for decedents dying on or after January 1, 2006. These exemptions match the estate tax exemptions under the federal estate tax law for 2005 and 2008. The exemption increases to $3.5 million in 2009. However, the Washington exemption remains at $2 million. The estate tax rates start at 10% on values in excess of the exemption amount and increase gradually to 19% on amounts in excess of $9 million.

WEST VIRGINIA [Property Taxes]
Property tax is administered by county officials and officials of several state government agencies. Although the Department of Tax and Revenue plays a major role in the administration of this tax, less than one-half of one percent of the property tax collected goes to state government. The primary beneficiaries of the property tax are county boards of education. Property taxes are paid to the sheriff of each of the state's 55 counties. Each county and municipality can impose its own rates of property taxation within the limits set by the West Virginia Constitution.

The West Virginia legislature sets the rate of tax of county boards of education. This rate is used statewide by all county boards of education. However, the total tax rate for county boards of education may differ from county to county due to excess levies. The total tax rate is a combination of the tax levies from four state taxing authorities: state, county, schools, and municipal. This total tax rate varies for each of the four classes of property, which consists of personal, real , and intangible properties. Property is assessed according to its use, location, and value as of July 1. The amount of property tax paid depends on the following factors: the assessed property value as determined by a county assessor, and the tax rate levied against each $100 of the property's assessed valuation. The assessed value of the property must be 60 percent of the property's true and actual value, which is defined as the amount of money the property would be worth in a sale.

Inheritance and Estate Taxes
No inheritance tax
Estate tax is limited & related to federal estate tax collection.

WISCONSIN [Department of Revenue]
“General Property” is defined by statute as including all taxable “real” and “personal” property except that which is taxed under special provisions, such as utility, Forest Crop, Woodland Tax, and Managed Forest property. The terms “real property,” “real estate,” and “land” include the land and all buildings, improvements, fixtures, and rights and privileges connected with the land. The term “personal property” includes all goods, wares,
merchandise, chattels, and effects of any nature or description having any marketable value and not included in the term “real property.” Under general property tax law all property as defined above is taxable unless expressly exempted by the legislature.

The governing body of each town, village, city, county, school district and state levies the total amount of tax to be raised. However, it is the city, village or town that prepares the tax bill and collects the initial tax payment. Each year the governing body of the city, village, town, county
and school district adopts a budget for the following year. To finance the expenditures in the budget they total all expected sources of revenue such as state aids and shared taxes, license fees, tuition, etc. This amount is then subtracted from the estimated expenditure figure and the remainder must be raised from the property tax.

Inheritance and Estate Taxes
No inheritance tax.
Complicated Estate tax

WYOMING [Department of Revenue]
Tax rates are set by the various political entities with the legal power to levy taxes. These governmental entities include counties; school districts; cities and towns; and special taxing districts, such as water and sewer districts and cemetery districts. Once the taxing entities have adopted their budgets and tax rates, the tax rates cannot be appealed. However, obvious factual errors may still be corrected by the county. Your tax notice indicates the amount you pay to each taxing entity.

All property tax is based on the assessed value of the property. "Assessed value" means taxable value. "Taxable value" means a percent of the fair market value of property in a particular class as follows:

(A) Gross product of minerals and mine products, one hundred percent (100%);
(B) Property used for industrial purposes, eleven and one-half percent (11.5%);
(C) All other property, real and personal, nine and one-half percent (9.5%).

Citizens are legally protected from counties and municipalities increasing property tax rates. For county revenue, the rate is limited to 8 mills (.8%). With very few exceptions, state law limits the property tax rate for all governmental purposes. All Wyoming citizens benefit from property tax exemptions. Personal property held for personal use is tax exempt. Inventory, pollution control equipment, cash, accounts receivable, stocks, and bonds are also exempt.

Inheritance and Estate Taxes
No inheritance tax
Estate tax is limited & related to federal estate tax collection.

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