Taxes PowerPoint Notes: Part 3. Sales Tax This is the tax added onto the price of goods and services. Tennessee has a state sales tax. The state.
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Presentation on theme: "Taxes PowerPoint Notes: Part 3. Sales Tax This is the tax added onto the price of goods and services. Tennessee has a state sales tax. The state."— Presentation transcript:
Sales Tax This is the tax added onto the price of goods and services. Tennessee has a state sales tax. The state sales tax in Tennessee is 6% on food and food ingredients and 7% on nearly everything else. Prescription medicines are an example of an item that is not subject to the sales tax.
Sales Tax (Continued) Oak Ridge also charges a sales tax of 2.75%. This brings the total sales tax in Oak Ridge to 8.75% on food and food ingredients and 9.75% on nearly everything else. Knoxville charges a sales tax of 2.25%. Knoxville’s sales tax is 8.25% on food and food ingredients and 9.25% on nearly everything else.
Sales Tax (Continued) Sales tax is an example of a regressive tax. This means that the tax has a greater impact upon lower income individuals than higher income individuals.
Excise Tax A federal and/or state tax imposed on the manufacture and distribution of certain consumer products. An example of this is the tax on gasoline. The state of Tennessee imposes a tax of 21.4 cents per gallon. The federal government imposes a tax of 18.4 cents per gallon (24.4 cents per gallon for diesel). There is a total tax of 39.8 cents per gallon of gas. This tax is built into the price per gallon of gasoline.
Property Tax This is the tax that an owner is required to pay on the assessed (appraised) value of their property (land, buildings, and homes). Registration fees on boats and vehicles are a type of tax on your personal property.
Property Tax (Continued) Property taxes are typically the biggest source of revenue for local governments. Property taxes are typically the biggest source of revenue for local governments. They are not imposed by states but by the tens of thousands of cities, townships, counties, school districts and other assessing jurisdictions throughout the United States.
Property Tax (Continued) The median property tax in Tennessee in 2008 was $924.00. Property taxes differ in Oak Ridge based upon whether your home or business is located in Anderson County or Roane County. Oak Ridge (AC) $5.33 per $1000 in assessed value* Oak Ridge (RC) $4.92 per $1000 in assessed value* *This information was provided by Oak Ridge City Council Member Ellen Smith’s website.
Estate Taxes A tax levied on an individual's estate or valuables if they exceed a certain amount. That amount currently is $3,500,000. $3,500,000. There is currently legislation to reduce this exemption amount to $1,000,000. This tax does not apply between spouses, who can leave any amount to one another upon death--a right known as the unlimited marital deduction. Therefore, the estate tax is mostly imposed on assets left to heirs. Property in excess of the exemption amount is taxed at a rate of 45%.
Gift Tax There is an annual limit on the amount of money that can be given to an individual as a gift. The current limit is $13,000 per recipient per year. Any gift in excess of this amount reduces the amount exempted from estate taxes. Monetary gifts to cover educational expenses or medical bills do not count toward the gift tax limit.