Institute on Taxation and Economic Policy (ITEP)

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2 posts
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How Local Governments Raise Revenue — and What it Means for Tax Equity

• By Galen Hendricks, Rita Jefferson

Local taxes are key to thriving communities. One in seven tax dollars in the U.S.—about $886 billion annually—is levied by local governments in support of education, infrastructure, public health, and other priorities. Three fourths of this funding comes from property taxes, 18 percent comes from sales and excise taxes, and six percent comes from income taxes.

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How is Adult-Use Cannabis Taxed by Your Local Government?

• By Carl Davis, Eli Byerly-Duke

Twenty states have legalized the sale of cannabis for general adult use. Cannabis taxes vary considerably depending on local authority. Some states allow local governments to levy standalone excise taxes applying narrowly to cannabis purchases. Most local excise taxes on cannabis are levied in states that do not permit local governments to levy general sales taxes.