The ITEP Guide to State & Local Taxes
Sales & Excise
How Do States Tax Cannabis?
States tax cannabis using sales taxes and special excise taxes based on price, weight, or potency. Learn how these taxes raise revenue and shape cannabis policy.
How Do State and Local Excise Taxes Work?
Excise taxes are sales taxes on specific goods such as gasoline, tobacco, and alcohol. Learn how state and local excise taxes work, why governments use them, and the policy issues they raise.
What’s Exempt from State and Local Sales Taxes?
Some purchases are exempt from state and local sales taxes. Learn which goods and services are commonly exempt, why exemptions exist, and how they affect tax fairness and revenue.
How Do State and Local Sales Taxes Work?
Sales taxes are the second largest source of revenue for state and local governments. In nearly every state they are an important way we pay for public education, health care, public safety, and other services. But they are also typically the costliest tax for low-income families.
Institute on Taxation
and Economic Policy
ITEP is a non-profit, non-partisan tax policy organization. We conduct rigorous analyses of tax and economic proposals and provide data-driven recommendations to shape equitable and sustainable tax systems.
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