Sales taxes in the United States

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Contents 1 History 2 Impact of sales taxes 3 States and federal districts 3.1 Alabama 3.2 Alaska 3.3 Arizona 3.4 Arkansas 3.5 California 3.6 Colorado 3.7 Connecticut 3.8 Delaware 3.9 District of Columbia 3.10 Florida 3.11 Georgia 3.12 Hawaii 3.13 Idaho 3.14 Illinois 3.15 Indiana 3.16 Iowa 3.17 Kansas 3.18 Kentucky 3.19 Louisiana 3.20 Maine 3.21 Maryland 3.22 Massachusetts 3.23 Michigan 3.24 Minnesota 3.25 Mississippi 3.26 Missouri 3.27 Montana 3.28 Nebraska 3.29 Nevada 3.30 New Hampshire 3.31 New Jersey 3.32 New Mexico 3.33 New York 3.34 North Carolina 3.35 North Dakota 3.36 Ohio 3.37 Oklahoma 3.38 Oregon 3.39 Pennsylvania 3.40 Puerto Rico 3.41 Rhode Island 3.42 South Carolina 3.43 South Dakota 3.44 Tennessee 3.45 Texas 3.46 Utah 3.47 Vermont 3.48 Virginia 3.49 Washington 3.50 West Virginia 3.51 Wisconsin 3.52 Wyoming 4 State by state sales taxes 5 Sales tax planning 6 See also 7 References 8 External links

Sales taxes in the United States are taxes added onto the price of goods or services that are purchased in the United States. A sales tax is a tax on consumption, which is displayed as a percentage of the sale price. Sales taxes are assessed by every state except Alaska, Delaware, Montana, New Hampshire and Oregon. Hawaii has a similar tax although it is charged to businesses instead of consumers. In some cases, sales taxes are also assessed at the county or municipal level.

The sales tax is the responsibility of the merchant to collect and remand to the state, and stated separately (or implicitly added at the time of sale) to consumers. Usually only consumers are charged the tax; resellers are exempt if they do not make use of the goods. In some jurisdictions, a reseller’s certificate is required to make use of this privilege. This is in contrast to a value added tax (VAT), where resellers are also taxed (resellers may then claim the VAT paid on their purchases from the applicable authority). States which have exemptions for specific types of organizations (such as schools), may also require a certificate. A sales tax audit is the examination of a company’s financial documents by the state’s tax agency to verify if they have collected the correct amount of sales tax from their customers.

The Constitution of the United States limits the power of the states to subjects within their jurisdiction. Jurisdiction over interstate commerce is reserved to the federal government. Nevertheless, a resident of a state with a sales tax who purchases goods from a place with no sales tax (or at a lower rate) might be subject to pay a “use tax” (often at the same rate as the state sales tax) for non-exempt purchases (see also tax-free shopping). Washington, D.C. policymakers have also looked at adding a national value added tax in combination with an income tax as a way to generate additional revenue.^[1]

History

In 1921, West Virginia became the first US state to enact a sales tax . Georgia passed legislation enacting a sales tax in 1929. 11 other states enacted sales taxes in 1933 alone. By 1940, at least 30 states had a sales tax.^[2] Currently, 45 of the 50 U.S. States levy a sales and use tax against purchases. Alaska, Delaware, Montana, New Hampshire, and Oregon are the exceptions.^[3]

Impact of sales taxes

Sales taxes are often implemented with the effect of being “regressive” on income (using a cross section time-frame), since low income families spend a greater share of their income on taxable consumption in a given year. Sales taxes can be applied to tangible goods like food (in some states), clothing, cars, furniture, household items, and other goods that make up the bulk of lower-income and middle-income family budgets.^[4] By comparison, the sales tax does not generally apply to landscaping services, attorney fees, private school tuition, stocks and bonds, real estate investments, and other purchases more typically made by higher-income families.

The effect on the distribution of economic welfare differs with each state and their implementation of a tax.^[4] In addition, sales taxes do not apply to all goods, services, and investments made by various families, creating differing impacts on families at different income levels. Many states attempt to offset regressive effects by exempting necessity goods (like groceries) from the sales tax base.^[5] Some states have also worked to expand the sales tax to services, not traditionally taxed, in part as an effort to address fairness and the shift to a service economy.^[6] The sales tax also poses equity issues between those who can avoid the sales tax by buying on-line and those who shop locally. The Streamlined Sales Tax Project is an organized effort by states to standardize tax law among states and ultimately begin taxing Internet and mail-order sales in order to address this equity challenge.^[7]

Other types of state tax systems can have similar distributions of tax incidence. The Tax Foundation states that corporate taxes accounted for 6.3 percent of low-income households’ tax bills last year and estimate that American households pay $3,190 on average in corporate income taxes per year.^[8] Sales taxes are often seen as good tax systems for economic growth, savings, and investment. Economists at the Organisation for Economic Co-operation and Development studied the effects of various types of taxes on the economic growth of developed nations within the OECD and found that sales taxes are one of the least harmful taxes for growth.^[9]

States and federal districts

Alabama

Alabama has a state general sales tax of 4%, plus any additional local taxes which can amount to a combined total sales tax of up to 10% in some cities such as Montgomery. Alabama is one of several states that do not exempt food from state taxes^[10]. The capital of Montgomery has a sales tax of 3.5%^[11]. The largest city of Birmingham has a sales tax of 4%^[12].

Alaska

There is no state sales tax in Alaska^[13]; however, local governments (boroughs and their municipalities) may levy up to 7%, and 108 of them do so^[14]. Municipal sales taxes are collected in addition to borough sales taxes, if any. Regulations and exemptions vary widely across the state.^[15] Anchorage and Fairbanks do not charge a local sales tax^[14]. The capital of Juneau has a 5% sales tax rate^[16].

Arizona

Arizona has a transaction privilege tax (TPT) that differs from a “true” sales tax in that the tax is levied on the gross receipts of the vendor and is not a liability of the consumer.^[17] (As explained in Arizona Administrative Code rule R15-5-2202,^[18] vendors are permitted to pass the amount of the tax on to the consumer, but remain the liable parties for the tax to the state.) TPT is imposed under sixteen tax classifications (as of November 1, 2006),^[19] with the tax rate most commonly encountered by Arizona consumers (e.g., for retail transactions) set at 5.6%. The current tax as of 2009 is 6.3%,^[20] though cities and counties can add as much as 6% to the total rate.^[20] Food for home consumption and prescription drugs (including legend drugs and certain prescribed homeopathic medication) are two of many items of tangible personal property that are statutorily exempt from the state retail TPT, but cities can charge tax on food and many do). Arizona’s TPT is one of the few excise taxes in the country imposed on contracting activities rather than sales of construction materials.^[21] The capital and largest city of Phoenix has a 2% TPT rate^[22].

Arkansas

Arkansas has a state sales tax of 6%, plus any additional local taxes^[23], for instance Little Rock charges a 0.5% city sales tax^[24].

Effective July 1, 2009, Arkansas state sales tax on unprepared food (groceries) reduced to 2% from 3%. Sales taxes on groceries had previously been reduced to 3% from 6% on July 1, 2007. Local sales taxes on groceries remained unchanged.

California

At 8.25%, California has the highest state sales tax, which can total up to 10.75% with local sales tax included^[25]. Sales and use taxes in the state of California are collected by a publicly elected tax commission. The statewide 8.25% is allocated as:^[26]

• 8.25% – State
  • 5.00% – State – General Fund
  • 0.25% – State – Fiscal Recovery Fund
  • 0.50% – State – Local Revenue Fund
  • 0.50% – State – Local Public Safety Fund
  • 1.00% – Uniform Local Tax
    • 0.25% – Local County – Transportation funds
    • 0.75% – Local City/County – Operational funds

On April 1, 2009 the state sales and use tax increased by 1% as a result of the 2008-2009 California budget crisis. The minimum sales tax statewide is 8.25%.^[27][28]

Supplementary sales tax may be added (with voter approval) by cities, counties, service authorities, and various special districts (such as the Bay Area Rapid Transit district). The effect is that sales tax rates vary from 8.25% (in areas where no additional taxes are charged) to 10.75% (as of July 1, 2009, the city of South Gate and Pico Rivera increased their sales-tax rate to this level, the highest in California)^[29]. For instance, the capital of Sacramento has a combined 8.75% sales tax rate, and the largest city of Los Angeles has a combined 9.75% sales tax rate^[25].

The last changes to the published local tax rates took effect on April 1, 2007. Official updates are published on the Board of Equalization website and also in Publication 71.^[30][31]

In general, sales tax is required on all purchases of tangible personal property to its ultimate consumer. Services are not subject to sales tax (but may be subject to other taxes).

Vehicle purchases are taxed based on the city and county in which the purchaser registers the vehicle, and not on the county in which the vehicle is purchased. There is therefore no advantage in purchasing a car in a cheaper county to save on sales tax (a one-percent difference in sales tax rate would otherwise result in an additional $300 loss on a $30,000 car).

In grocery stores, unprepared food items are not taxed but vitamins and all other items are. Ready-to-eat hot foods, whether sold by supermarkets or other vendors, are taxed. Restaurant bills are taxed. As an exception, hot beverages and bakery items are tax-exempt if and only if they are for take-out and are not sold with any other hot food. If consumed on the seller’s premises, such items are taxed like restaurant meals. All other food is exempt from sales tax.

Also excluded are food animals (livestock), food plants and seeds, fertilizer used to grow food, prescription drugs and certain medical supplies, energy utilities, certain alternative energy devices and supplies, art for display by public agencies, and veterans’ pins. There are many specific exemptions for various veterans’, non-profit, educational, religious, and youth organizations. Sale of items to certain out-of-state or national entities (mostly transportation companies) is exempt, as are some goods sold while in transit through California to a foreign destination.

Occasional or one-time sales not part of a regular business are exempt, except that sales of three or more non-food animals (puppies, kittens, etc.) per year are taxed.^[32]

There are also exemptions for numerous specific products, from telephone lines and poles, to liquid petroleum gas for farm machinery, to coins, to public transit vehicles. There are partial exemptions for such varied items as racehorse breeding stock, teleproduction service equipment, farm machinery, and timber-harvesting equipment.^[33] For an organized list of exemptions, with estimates for how much revenue the state loses and the people saves for each, see Publication 61 of the Board of Equalization.^[34]

Sales tax is charged on gasoline. The tax is levied on both the gasoline and on the federal and state excise taxes, resulting in a form of “double taxation” (if the money used to purchase the gas had already been subject to income tax, as would be the case with a California resident, the scheme results in a rare form of triple taxation). The sales tax is included in the metered price at the pump. The California excise tax on gasoline is 18 cents a gallon.^[35]

Motor vehicle gasoline and jet fuel are subject to special taxation regimes. In 2005, there was a political dispute in the San Francisco Bay Area about whether revenues for jet fuel should be credited to San Mateo County (where San Francisco International Airport is physically located), the City and County of San Francisco, which owns the airport, or Alameda County, where Oakland International Airport is located. (The distinction is largely point of delivery vs. point of negotiation for the sale.) This is controlled by Regulation 1802,^[36] which has other provisions about businesses which have multiple locations.

Critics of the current sales tax regime charge that it gives local governments an incentive to promote commercial development (through zoning and other regulations) over residential development, including the use of eminent domain condemnation proceedings to transfer real estate to higher sales tax generating businesses.^[37] This is a result of Proposition 13 passed by California voters in the 1970s.

Colorado

Colorado‘s state sales tax is 2.9% with some cities and counties levying additional taxes^[38]. Denver‘s tangibles tax is 3.62%, with food eaten away from the home being taxed at 4%. There is also a football stadium tax, mass transit tax, and scientific and cultural facilities tax. Most transactions in Denver and the surrounding area are taxed at a total of about 8%. The exact sales tax rate for Denver is 7.72%^[39].

Connecticut

Connecticut has a 6% sales tax, with no additional local taxes^[40]. Most non-prepared food products are exempt, as are most prescription and nonprescription medications, all internet services, all magazine and newspaper subscriptions, and textbooks (for college students only). Most clothing costing less than $50 per item is also exempt; items costing more than $50 are charged sales tax on the entire price.^[41]

Shipping and delivery charges (including charges for U.S. postage) made by a retailer to a customer are subject to sales and use taxes when provided in connection with the sales of taxable tangible personal property or services. The tax applies even if the charges are separately stated and applies regardless of whether the shipping or delivery is provided by the seller or by a third party. No tax is due on shipping and delivery charges in connection with any sale that is not subject to sales or use tax. Shipping or delivery charges related to sales for resale or sales of exempt items are not taxable. Likewise, charges for mailing or delivery services are not subject to tax if they are made in connection with the sale of nontaxable services.^[42]

Delaware

Delaware does not assess a sales tax on consumers. The state does, however, impose a tax on the gross receipts of most businesses. Business and occupational license tax rates range from 0.096 percent to 1.92 percent, depending upon the category of business activity.

District of Columbia

Washington, D.C. has a sales tax rate of 6.00%. The tax is imposed on sale of tangible personal property and selected services. A 9% tax is imposed on liquor sold for off premises consumption, 10% on restaurant meals and rental cars, 12% on parking, and 14% on hotel accommodations. Groceries, prescription and non-prescription drugs, and residential utilities services are exempt from the District’s sales tax^[43].

The District once had two sales tax holidays each year, one during “back-to-school” and one preceding the holiday shopping season. The ‘back to school’ tax holiday was repealed on May 12, 2009.^[44]

Florida

Florida has a general sales tax rate of 6%.^[45] The tax is imposed on the sale or rental of goods, the sale of admissions, the lease, license, or rental of real property, the lease or rental of transient living accommodations, and the sale of a limited number of services such as commercial pest control, commercial cleaning, and certain protection services. There are a variety of exemptions from the tax, including groceries and prescriptions.^[46]

A “discretionary sales surtax” may be imposed by the counties of up to 1.5%, charged at the rate of the destination county (if shipped). This is 1% in most counties, 0.5% in many, 1.5% in very few such as Leon, and 0.25% in one county. A few have none at all. Most have an expiration date, but a few do not. Only the first $5,000 of a large purchase is subject to the surtax rate.^[47] Most counties levy the surtax for education or transportation improvements.

There are annual sales tax holidays, such as a back-to-school holiday on clothing, books, and school supplies under a certain price, as well as one in June 2007 to promote hurricane preparedness. The 2008 Legislators did not enact any sales tax holidays.

Florida also permits counties to raise a “tourist development tax” of up to an additional 6% on hotel rooms.

Georgia

Georgia has a 4% state sales tax rate. Groceries are exempt from the state sales tax, but still subject to tax by the local sales tax rate. Counties may impose local sales tax of 1%, 2%, or 3%, consisting of up to three 1% local-option sales taxes (out of a set of five) as permitted by Georgia law. These include a SPLOST, a homestead exemption (HOST), and one for public schools which can be put forth for a referendum by the school board instead of the county commission (in cooperation with its city councils). Also, the city of Atlanta imposes an additional 1% municipal-option sales tax (MOST), as allowed by special legislation of the Georgia General Assembly, solely for the purpose of fixing its water and sewerage systems.

As of July 2008, total sales tax rates in Georgia are 3% for groceries and 7% for other items in the vast majority of its 159 counties. A few counties charge only 2% local tax (6% total on non-grocery items), and four partially exempt groceries from the local tax by charging 2% on food, and 3% (7% total) on other items. Fulton and DeKalb counties charge 1% for MARTA, and adjacent metro Atlanta counties may do so by referendum if they so choose. For the portions of Fulton and DeKalb within the city of Atlanta, the total is at 8% (4% on groceries) due to the MOST.^[48]

Similar to Florida and certain other states, Georgia has two sales tax holidays per year. One is for back-to-school sales the first weekend in August, but sometimes starting at the end of July. A second usually occurs in October, for energy-efficient home appliances with the Energy Star certification.

Georgia has many exemptions available to specific businesses and industries. To identify potential exemptions, businesses and consumers must research the laws and rules for sales and use tax and review current exemption forms.^[49]

Hawaii

Hawaii does not have a sales tax, but it does have an excise tax which applies to nearly every conceivable type of transaction (including services), and is technically charged to the business rather than the consumer. Unlike other states, rent, medical services and perishable foods are subject to the excise tax. Also, unlike other states, businesses may or may not show the tax separately on the receipt, as it is technically part of the selling price. 4.0% is charged at retail with an additional 0.5% surcharge in the City and County of Honolulu (for a total of 4.5% on Oahu sales), and 0.5% is charged on wholesale.^[50] However, the state also allows “tax on tax” to be charged, which effectively means a customer is billed 4.166% (4.712% on Oahu). The exact dollar or percentage amount to be added must be quoted to customers within or along with the price. The 0.5% surcharge on Oahu was implemented to fund the new rail transport system.^[51] The use of an excise tax means that tax-exempt non-profit organizations must pay the tax, unlike states where they are exempt from sales taxes.

Idaho

Idaho has a 6.0% state sales tax. Some localities levy an additional local sales tax.^[52]

Illinois

Illinois’ sales and use tax scheme includes four major divisions. Retailers’ Occupation Tax, Use Tax, Service Occupation Tax and the Service Use Tax. Each of these taxes is administered by the Illinois Department of Revenue. The Retailers’ Occupation Tax is imposed upon persons engaged in the business of selling tangible personal property to purchasers for use or consumption. It is measured by the gross receipts of the retailer. The base rate of 6.25% is broken down as follows: 5% State, 1% City, 0.25% County. Local governments may impose additional tax resulting in a combined rate that ranges from the State minimum of 6.25% to a current high of 11.50% in certain business districts in Cook County.^[53]. Springfield charges 7.75% total (including state tax). A complementary Use Tax is imposed upon the privilege of using or consuming property purchased anywhere at retail from a retailer. Illinois registered retailers are authorized to collect the Use Tax from their customers and use it to offset their obligations under the Retailers’ Occupation Tax Act. Since the Use Tax rate is equivalent to the corresponding Retailers’ Occupation Tax rate, the amount collected by the retailer matches the amount the retailer must submit to the Illinois Department of Revenue. The combination of these two taxes is what is commonly referred to as “sales tax.” If the purchaser does not pay the Use Tax directly to a retailer (for instance, on an item purchased from an Internet seller), they must remit it directly to the Illinois Department of Revenue.^[54]

The Service Occupation Tax is imposed upon the privilege of engaging in service businesses and is measured by the selling price of tangible personal property transferred as an incident to providing a service. The Service Use Tax is imposed upon the privilege of using or consuming tangible personal property transferred as an incident to the provision of a service. An example would be a printer of business cards. The printer owes Service Occupation Tax on the value of the paper and ink transferred to the customer in the form of printed business cards. The serviceperson may satisfy this tax by paying Use Tax to his supplier of paper and ink or, alternatively, may charge Service Use Tax to the purchaser of the business cards and remit the amount collected as Service Occupation Tax on the serviceperson’s tax return. The service itself, however, is not subject to tax.

Qualifying food, drugs, medicines and medical appliances^[55] have sales tax of 1% plus local home rule tax depending on the location where purchased. Newspapers and magazines are exempt from sales tax as are legal tender, currency, medallions, bullion or gold or silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country.

Illinois’ system is exceptionally complicated. A brief overview is detailed on the Illinois Department of Revenue website.^[56]

The city of Chicago has the highest total sales tax of all major U.S. cities.^[57] It is also one of the most complex. 10.25% is levied on all non-perishable goods purchased, while 2% is levied on qualifying food, drugs, medicines and medical appliances.^[57] The Illinois Department of Revenue collects a 3% Chicago Soft Drink Tax and a 1% Metropolitan Pier and Exposition Authority (MPEA) “Food and Beverage Tax”, on prepared food and beverage purchases in the downtown area (These “downtown” boundaries are: Surf Street on the north, Ashland Avenue on the west, Stevenson Expressway (I-55) on the south, & Lake Michigan on the east. Furthermore, O’Hare and Midway airports also fall under the 1% MPEA tax district).^[58] In addition, the Chicago Department of Revenue collects additional sales taxes on items such as fountain drinks, bottled water, liquor, and cigarettes.^[59] Effective July 1, 2010, the sales tax rate in Chicago is scheduled to decrease by 0.5% to 9.75%. ^[57]

Indiana

Indiana has a 7% state sales tax. The tax rate was raised from 6% on April 1, 2008, to offset the loss of revenue from the statewide property tax reform, which is expected to significantly lower property taxes. Untaxed retail items include medications, water, ice and unprepared, raw staple foods or fruit juices. Many localities, inclusive of either counties or cities, in the state of Indiana also have a sales tax on restaurant food and beverages consumed in the restaurant or purchased to go. Revenues are usually used for economic development and tourism projects. This additional tax rate may be 1% or 2% or other amounts depending on the county in which the business is located. For example, in Marion County, Indiana, the sales tax for restaurants is 10%. There is an additional 2% tax on restaurant sales in Marion County to pay for Lucas Oil Stadium.

Iowa

Iowa has a 6% state sales tax, including 1% dedicated to local school districts. A local option sales tax of 1% is imposed in most cities and in the unincorporated portion of most counties, bringing the total up to a maximum of 7%. There is no tax on most unprepared food. The Iowa Department of Revenue provides information about local option sales taxes,^[60] including sales tax rate lookup.

Kansas

Kansas has a 5.3% state sales tax. More than 700 jurisdictions within the state (cities, counties, and special districts) may impose additional taxes. For example, in the capital city of Topeka, retailers must collect 5.3% for the state, 1.15% for Shawnee County, and 1% for the city, for a total rate of 7.45%. As of February 2007, the highest rate was 8.65%, in the Roeland Park Transportation District.

Kentucky

Kentucky has a 6% state sales tax. Most staple grocery foods are exempt. Alcohol sales were previously exempt until April 1, 2009, when a 6% rate was applied to this category as well.

Louisiana

Louisiana has a 4% state sales tax: 3.97% to sales tax and .03% to Louisiana tourism district.^[61] There are also taxes on the parish (county) level and some on the city levels, Baton Rouge has a 5% sales tax.^[62] Parishes may add local taxes up to 5%, while local jurisdictions within parishes may add more. Louisiana also bids out sales tax audits to private companies, with many being paid on a percentage collected basis.

Orleans Parish collects the maximum 5% tax rate for a total of 9% on general purpose items.^[63]

Maine

Maine has a 5% general, service provider and use tax.^[64] The tax on lodging and prepared food is 7% and short term auto rental is 10%. These are all generally known as “sales tax”.

Maryland

Maryland has a 6% state sales and use tax (7% restaurant sales tax in Worcester County) as of January 3, 2008 (it was 5% before this), with exceptions for medicine, residential energy, and most non-prepared foods. Currently, many services (e.g., auto repair labor, haircuts, accounting) are not taxed. With this tax increase, Maryland added sales tax on Internet purchases and other mail items such as magazine subscriptions. Clothing is also taxable.

Certain computer services were to be subject to sales tax and use tax effective July 1, 2008 after being approved without public hearing during the 2007 Special Legislative Session.^[65] However, after effective lobbying by computer services professionals, the tax was repealed April 6 during the final days of the General Assembly. Following declining approval ratings and intense public pressure, Governor Martin O’Malley relented and authorized the repeal.

Massachusetts

Massachusetts has a 6.25% sales tax as of August 1, 2009, with numerous exceptions including (among other things): “food products” (but excluding prepared meals); residential water, gas, electric services; returnable containers, clothing and footwear up to $175 (for clothing over $175, tax is due only on the amount over $175 per item^[66]); prescription medicines, prostheses and medical appliances or services; publications for use in education or religious worship; poultry and livestock, as well as their feed; fruit and vegetable stock for generating food for humans; tools, machinery, parts, etc., for use in agriculture; cloth or other materials used for making clothing; residential heat pump, solar or wind power system; items purchasable with federal food stamps; the American Flag; etc. An enacted change in 2006 taxes computer software that is downloaded for use in Massachusetts, whereas previously this was viewed as a non-taxable “service”.^[67]

On August 1, 2009, the sales tax rate in Massachusetts has increased to 6.25% from 5.00%. The state’s alcohol, satellite television, meals, and hotel taxes also increased on that date.^[68]

Every year since 2004, the State Government has enacted tax holidays suspending the sales tax on purchases for one weekend in August. Motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, tobacco products, and any single item with a price exceeding $2,500 were excluded from the holiday.^[69] This tradition was halted in 2009, when the holiday was limited to Energy Star appliances under $2,500. Governor Deval Patrick noted that the fiscal losses to the Commonwealth were too great to afford a tax holiday in the present economic climate.^[70]

Michigan

Michigan has a 6% sales tax. Michigan has a use tax of 6%, which is a tax that is applied to items brought into Michigan but not bought there, and on rentals in some situations, and is supposed to be paid when filing income tax.^[71] A service tax was approved in September 2007, effective December 1, 2007, allowing certain services to be taxed. The services tax was repealed the same day it went into effect. There is no local sales tax in Michigan. Food, periodicals^[72], and prescription drugs are not taxed. Restaurants, however, do have a tax, but the tax is for the service and not on the food. Michigan also has recently introduced a business tax called the Michigan Business Tax (MBT) which replaces the Single Business Tax (SBT).^[73]

Minnesota

Minnesota currently has a 6.875% statewide sales tax. The statewide portion consists of two parts: a 6.5% sales tax with receipts going to the state General Fund, and a 3/8 of 1 percent tax going to arts and environmental projects. The 3/8 of 1 percent tax was passed by a statewide referendum on Nov. 4, 2008, and went into effect on July 1, 2009.^[74] Generally, food (not including prepared food, some beverages such as soda pop, and other items such as candy) and clothing are exempt from the sales tax. Prescription drugs are also exempt.^[75]

Local units of government may, with legislative approval, impose additional general sales taxes. As of July 1, 2008, an additional 0.25% Transit Improvement tax was phased in across five counties in the Minneapolis-St. Paul metropolitan area for transit development. These counties are Hennepin, Ramsey, Anoka, Dakota, Washington. A 0.15% sales tax is imposed in Hennepin County to finance the Minnesota Twins‘ new Target Field. Several cities impose their own citywide sales tax: Saint Paul (0.5%), Minneapolis (0.5%), Rochester (0.5%), and Duluth (1%).

These additional taxes increase the total general sales tax rates to 7.875% in Duluth, 7.775% in Minneapolis, 7.625% in Saint Paul, and 7.375% in Rochester.

In addition to general sales taxes, local units of government can, again with legislative approval, impose sales taxes on certain items. Current local option taxes include a “lodging” tax in Duluth (3%), Minneapolis (3%), and Rochester (4%), as well as served “food and beverage” tax in Duluth (2.25%).

Alcohol is taxed at an additional 2.5% gross receipts tax rate above the statewide 6.875% sales tax rate, for a total rate of 9.375%, not including any applicable local taxes.

Mississippi

Mississippi has a 7% state sales tax. Cities and towns may implement an additional tourism tax on restaurant and hotel sales. The city of Tupelo has a 0.25% tax in addition to other taxes. Restaurant and fast food tax is 9%. The city of Hattiesburg also has a 9% sales tax on Restaurant and fast food tax.

Missouri

Missouri imposes a sales tax upon all sales of tangible personal property, as well as some “taxable services”^[76]; it also charges a use tax for the “privilege of storing, using or consuming within this state any article of tangible personal property.”^[77] The state rate, including conservation and other taxes, is 4.225%, and counties, municipalities, and other political subdivisions charge their own taxes.^[78] The state sales tax rate on certain foods is 1.225%.^[79]

Transportation Development Districts and Museum Districts may impose sales tax (but not use tax) up to 1%, in addition to all other sales taxes. However, the Missouri Department of Revenue does not administer sales tax for these districts, nor does it publish their sales tax rates. As of August 2007, there is no public, comprehensive and complete list of these districts, their locations, and the sales tax rates they impose.

Missouri provides several exemptions from sales tax, such as purchases by charitable organizations or some common carriers (as opposed to “contract carriers”).^[80] Missouri also excludes some purchases from taxation on the grounds that such sales are not sales at retail; these include sales to political subdivisions.^[81] The Supreme Court of Missouri in August, 2009, stated that when a sale is excluded from taxation – as opposed to exempt from taxation – the seller must self-accrue sales tax on its purchase of the goods and remit the tax on such purchases it made.^[82]

Although the purchaser is obligated to pay the tax, the seller is obligated to remit the tax, and when the seller fails to remit, the obligation to pay falls on him. As compensation for collecting and remitting taxes, and as an incentive to timely remit taxes, sellers may keep two percent of all taxes collected each period.^[83] There are two exceptions to the general rule that the seller must pay the sales tax when he or she fails to collect it. First, no sales tax is due upon the purchase of a motor vehicle that must be titled. Instead, the purchaser pays the tax directly to the Department of Revenue within one month of purchase. As long as the vehicle is taken out of state within that first month of purchased and titled elsewhere, no tax is due in Missouri. Second, if the purchaser presents an exemption certificate to the buyer at the time of sale, then the purchaser may be assessed taxes on the purchases if the certificate was issued in bad faith.

Montana

Montana does not have a state sales tax but some municipalities which are big tourist destinations, such as Whitefish, Red Lodge, Big Sky, and West Yellowstone, have a small sales tax (3%).

Nebraska

Nebraska has a 5.5% state sales tax. Municipalities have the option of imposing an additional sales tax of up to 1.5%, resulting in a maximum rate of 7.0%. Specific tax rates per counties are available on the web.^[84]

Nevada

Nevada‘s state sales tax rate is 6.85 percent. Counties may impose additional rates via voter approval or through approval of the Legislature; therefore, the applicable sales tax will vary by county from 6.85 percent to 8.1 percent in Clark County. Clark County, which includes Las Vegas, imposes four separate county option taxes in addition to the statewide rate – 0.25 percent for flood control, 0.50 percent for mass transit, 0.25 to fund the Southern Nevada Water Authority, and 0.25 percent for the addition of police officers in that county. In Washoe County (which includes Reno), the sales tax rate is 7.725 percent, due to county option rates for flood control, the ReTRAC train trench project, mass transit, and an additional county rate approved under the Local Government Tax Act of 1991.^[85]

For travelers to Las Vegas, note that the lodging tax rate in unincorporated Clark County, which includes the Las Vegas Strip, is 12%. Within the boundaries of the cities of Las Vegas and Henderson, the lodging tax rate is 13%.

New Hampshire

New Hampshire is one of only five states that do not impose any form of general sales tax on the sale or use of tangible personal property within the state. New Hampshire does, however, levy a tax on meals (9%), room occupancies (9%), motor vehicle rentals, and use of electricity (55 cents per megawatt-hour) and phone services (7 percent). A transfer tax is levied on real estate sales, currently 1.5 percent.

In New Hampshire, any food or beverage that is prepared and served by a “restaurant,” whether served for consumption on or off the restaurant premises, is considered to be a meal. Excluded from the tax is any food and beverage that is wholly packaged off the premises and sold in the original package, such as chips, candy, soda or fruit beverages in sealed containers, and frozen novelties. Catered or delivered meals or party platters are taxable, as are charges for any service or items related to preparing or serving the food (plates, ovens, etc). Restaurants include most places where you can buy any food. There are several other exceptions. For example, meals served or furnished on the premises of a religious or charitable nonprofit organization are not taxable, nor are bakery products sold in quantity of 6 or more servings, or a whole pie, cake, or loaf of bread with multiple servings.

The New Hampshire meals and rooms tax rate is 8% on any amount over 35 cents (including any alcohol served on premise). The rooms tax is imposed on any occupancy in a hotel, house, apartment, dormitory, camp, cottage or any similar establishment offering sleeping accommodations in the State of New Hampshire, for any rental less than 185 days, not including bare campsites without shelter. The tax rate is currently 8% of the rent for each occupancy. A motor vehicle rental tax is imposed under the meals and room tax classification at a rate of 8% on the gross rental receipts of each rental, but not including separately itemized fuel, insurance or damage charges.

Gasoline tax is 20.6¢ per gallon. Cigarettes: $1.08 per pack. Beer: 30¢ per gallon.

See also tax-free shopping.

New Jersey

The state of New Jersey’s sales and use tax rate is seven percent (7%). However, there are exceptions to this statewide rate. In Urban Enterprise Zones, UEZ-impacted business districts, and in Salem County, sales tax may be charged at 3.5% (50% of the regular rate) on certain items. In addition, local sales taxes are imposed on sales of certain items sold in Atlantic City and Cape May County. For additional information, see Tax Topic Bulletin S&U-4, New Jersey Sales Tax Guide, available at: http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf

A full list of Urban Enterprise Zones is available on the State of New Jersey Web site.^[86]

New Jersey does not charge sales tax on unprepared food (except certain sweets and pet food), household paper products, medicine, and clothing. New Jersey does not charge sales tax on goods purchased for resale or on capital improvements but does charge sales tax on certain services. See the NJ Division of Taxation website at: http://www.state.nj.us/treasury/taxation/su.shtml

New Jersey does not charge sales tax on gasoline, but gasoline is subject to a $0.145/gallon excise tax.

Sales of clothing and accessories that are made of fur from the hide or pelt of an animal that is valued at $500 or more are subject to a 6% Fur Clothing Gross Receipts Tax.

New Mexico

The state of New Mexico does not have a sales tax. It instead has a statewide gross receipts tax of 5%, with municipalities assessing an additional gross receipts tax. The gross receipts tax rate is between 5.125% and 8.4375% throughout the state.^[87] In New Mexico’s gross receipts tax, all receipts from sales of goods or service within the state are taxed (with the exception of food for offsite consumption, such as grocery store sales).

The state does not prohibit retailers from collecting this tax directly from the consumer, so the gross receipts tax is commonly just passed on from the retailer to the consumer as if it were a sales tax.

New York

New York has a 4% state sales tax. All counties and some cities add local taxes ranging from 3% to 4.75%. The combined sales tax in Utica, New York, for example, is 8.75%. In New York City, total sales tax is 8.875%, which includes 0.375% charged for the service of the Metropolitan Transportation Authority.

As of September 1, 2007, New York State has eliminated sales tax on all clothing and shoes if the single item is priced under $110. Most counties and cities have not eliminated their local sales taxes on clothing and shoes. There are however, 5 cities (most notably New York City) and 11 counties (not counting the counties which make up New York City: New York, Queens, Kings, Richmond, and Bronx Counties) that have done so. The counties where the year-round exemption will apply include: Chautauqua, Chenango, Columbia, Delaware, Dutchess, Greene, Hamilton, Madison (outside the City of Oneida), Rensselaer, Tioga, Broome, and Wayne. The cities where the year-round exemption will apply include: Gloversville, New York City, Norwich, Olean, Binghamton, and Sherrill. New York also exempts college textbooks from sales tax.

As of June 1, 2008, when products are purchased online and shipped into New York State, some retailers must charge the tax amount appropriate to the locality where the goods are shipped, and in addition, must also charge the appropriate tax on the cost of shipping and handling. The measure states that any online retailer that generates more than $10,000 in sales via in-state sales affiliates must collect New York sales tax. The cumulative gross receipts from sales to New York customers as a result of referrals by all of the seller’s resident representatives total more than $10,000 during the preceding four quarterly sales tax periods.

As of August 1, 2009, New York City Sales tax increased to 8.875%. Clothing under $110 will remain tax free. Clothing above $110 will be taxed.

North Carolina

North Carolina has a state-levied sales tax of 5.5%, effective September 1, 2009, with most counties adding an additional 2.25% tax, for a total tax of 7.75% in 92 of the 100 counties. Mecklenburg County levies an additional 0.5% tax, which is directed towards funding the light rail system, for a total of 8.25% and the sales tax in a few other counties is 8%.^[88]

There is a 30.2¢ tax per gallon on gas, a 35¢ tax per pack of cigarettes, a 79¢ tax per gallon on wine, and a 53¢ tax per gallon on beer. Most non-prepared food purchases are taxed at a reduced rate of 2%. Candy, soft drinks, and prepared foods are taxed at the full combined 7.75%-8.25% rate, with some counties levying an additional 1% tax on prepared foods. In order to benefit back-to-school shoppers, there is a sales tax holiday that exempts certain items of tangible personal property sold between the first Friday in August and the following Sunday.

North Dakota

North Dakota has a 5% state sales tax for general sales. Sales Tax in North Dakota varies depending on the category(5%, 7%, 3% and 2%).^[89]

Ohio

Ohio has a 5.5% state sales tax.^[90] Counties may levy a permissive sales tax of from 1/4% up to 2.5% and transit authorities, mass transit districts usually centered on one primary county, may levy a sales tax of from 1/4% up to 2.5%. Cuyahoga county has the highest sales tax of 7.75%. Tax increments may not be less than 1/4%, and the total tax rate, including the state rate, may not exceed 8.5%. County permissive taxes may be levied by emergency resolution of the county boards of commissioners. Transit authority taxes must and county permissive taxes may be levied by a vote of the electors of the district or county. Shipping and handling charges are also taxable.Ohio law requires virtually every type of business to obtain a Ohio Sales Tax Certificate Number. If you sell goods on eBay or the internet and ship them to someone in the state you reside, then you must collect sales tax from the buyer and pay the collected tax to your state on a monthly or quarterly basis. If you sell less than $4 million in annual sales, you do not have to collect or pay sales tax on out-of-state sales. Ohio Sales Tax Resale Certificate Example: If you live in Ohio and you sell or ship something to someone else in Ohio, then you must collect and pay sales tax to the State of Ohio. But, if you sell the same item to someone outside the State of Ohio, you need not charge sales tax, but must report the exempt tax sale to the State of Ohio. Ohio also has a gross receipts tax called the Commercial Activity Tax (CAT) that is applicable only to businesses but shares some similarities to a sales tax. “Food for human consumption off the premises where sold” is exempt from sales tax, with the exception of sodas and alcoholic beverages which are taxed the full 7%.^[91] Guernsey County is 7.0% ^[92]

Oklahoma

Oklahoma has a 4.5% sales tax rate. Cities have an additional sales tax which varies, but is generally 3-4% resulting in a total sales tax rate of 7.5% to 8.5%.

Oregon

Oregon has no statewide sales tax, although local municipalities may impose sales taxes if they so choose. The city of Ashland, for example, charges a 5% sales tax on prepared food. Several Oregon communities assess sales taxes on lodging.

Pennsylvania

Pennsylvania has a 6% sales tax rate. Allegheny County has a 7% sales tax rate and Philadelphia has an 8% sales tax rate.

Food, most clothing, and footwear are among the items most frequently exempted.^[93] However, taxed food items include soft drinks and powdered mixes, sports drinks, hot beverages, hot prepared foods, sandwiches, and salad bar meals, unless these items are purchased with food stamps. Additionally, catering and delivery fees are taxed if the food itself is taxed.

Additional exemptions include internet service,^[94] newspapers, textbooks, disposable diapers, feminine hygiene products, toilet paper, wet wipes, prescription drugs, many over-the-counter drugs and supplies, oral hygiene items (including toothbrushes and toothpaste), contact lenses and eyeglasses, health club and tanning booth fees, burial items (like coffins, urns, and headstones), personal protective equipment for production personnel, work uniforms, veterinary services, pet medications, fuel for residential use (including coal, firewood, fuel oil, natural gas, wood pellets, steam, and electricity), many farming supplies and equipment, and ice.^[95]

Puerto Rico

Puerto Rico has a 5.5% commonwealth sales tax that applies to both products and services with few exemptions (including items such as unprocessed foods, prescription medicines and business-to-business services). Additionally, most municipalities have a city sales tax of 1.5% for a total of 7%. Some items that are exempt from commonwealth sales tax, specifically unprocessed foods, may still be subject to the city sales tax in the municipalities.^[96]

Rhode Island

Rhode Island has a state sales tax of 7%. The rate was raised from 5% to 6% as a temporary measure in the 1970s, but has not since been lowered. Rhode Island raised its sales tax from 6% to 7% in the early 1990s to pay for the bailout of the state’s failed credit unions. The change was initially proposed as a temporary measure, but was later made permanent. Other taxes may also apply, such as the state’s 1% restaurant tax. Many items are exempt from the state sales tax, e.g., food, prescription drugs, clothing and footwear, newspapers, coffins, and original artwork.^[97]

South Carolina

South Carolina has a 6% state sales tax, as of June 1, 2007 (7% for accommodations), but counties and some cities may impose an additional 1% or 2% sales tax. As of mid-2005, 35 of 46 counties do so. Restaurants may also charge an extra 1-2% tax on prepared food (fast food or take-out) in some places. The state’s sales tax on unprepared food disappeared completely November 1, 2007. There is a cap of $300 on sales tax for most vehicles.

Additionally, signs posted in many places of business inform that South Carolina residents over the age of 85 are entitled to a 1% reduction in sales tax.

South Dakota

South Dakota has a 4% state sales tax, plus any additional local taxes. An additional 1% sales tax is added during the summer season on sales occurring in tourism-related businesses and dedicated to the state’s office of tourism.

Currently as of 2009, all sales tax in the Rapid City area is 6%.

Tennessee

Tennessee charges 5.5% sales tax on groceries as of January 1, 2008, and 7% on other items. Counties also tax up to 2.75% in increments of 0.25% — most do so around 2.25%. If a county does not charge the maximum, its cities can charge and keep all or part of the remainder. Several cities are in more than one county, but none charge a city tax, thus paying only the county taxes.^[98][99]

Texas

The Texas state sales and use tax rate is 6.25%, but local taxing jurisdictions (cities, counties, special purpose districts, and transit authorities, but specifically not including school districts) may also impose sales and use taxes up to 2% for a total of 8.25%.^[100] The main items exempt from sales tax include medicines (prescription and over-the-counter), food and food seeds (but prepared food, such as from a restaurant, is subject to sales tax).^[101] The sales tax is the only source of income for the state government.

Motor vehicle and boat sales are taxed at only the 6.25% state rate; there is no local sales and use tax on these items. In addition, a motor vehicle or boat purchased outside the state is assessed a use tax at the same rate as one purchased inside the state. The sales tax is calculated on the greater of either the actual purchase price or the “standard presumptive value” of the vehicle, as determined by the state, except for certain purchases (mainly purchases from licensed dealers or from auctions).^[102]

Lodging rates are subject to a 6% rate at the state level, with local entities being allowed to charge additional amounts. Lodging for travelers on official government business is specifically exempt from tax but the traveler must submit an exemption form to the hotel/motel and provide proof of official status.^[103]

If merchants file and pay their sales and use tax on time, they may subtract 1/2 percent of the tax collected as a discount, to encourage prompt payment and to compensate the merchant for collecting the tax from consumers for the state.^[104]

Texas provides one sales tax holiday per year (generally in August prior to the start of the school year, running from Friday to Sunday of the designated weekend). Clothing less than $100 (except for certain items, such as golf shoes) and school supplies are exempt from all sales tax (state and local) on this one weekend only. There has also been talks of a tax free weekend in December to help with the Holiday shopping season.

Utah

Utah has a 4.75% state sales tax. Additionally, local taxing authorities can impose their own sales tax. Currently the majority of Utah’s aggregate sales taxes are in the range of 5.5% – 7.0%. Utah has a 16.350% sales tax on rental cars in Salt Lake City.^[105]

Vermont

Vermont has a 6% sales tax.^[106]

Virginia

Virginia has a general sales tax rate of 5% (4% state tax and 1% local tax). Consumers are taxed on every ‘eligible food item.’ For example, fresh local produce sold at farmers markets and grocery stores, or basic, unprepared cold grocery foods, are taxed 2.5% (1.5% state tax and 1% local tax).^[107] Cities and counties may also charge an additional “Food and Beverage Tax” on restaurant meals.^[108]

Virginia’s use tax also applies at the same rate for out of state purchases (food 2.5%, non-food 5%) exceeding $100 per year “from mail order catalogs”.^[109] Various exemptions include prescription and non-prescription medicine^[110], gasoline (need citation), and postage stamps, or the labor portion of vehicle repair (need citation). “Cost price” does not include separately stated “shipping” charges but it does include a separate “handling” charge or “shipping and handling” charges if listed as a combined item on the sales invoice.^[111] However, unlike Maryland and West Virginia consumer use tax forms, the Virginia CU-7 Consumer Use Tax Form does not recognize that it is possible to be under-taxed in another state and so only addresses untaxed items. Unlike Maryland’s quarterly filing, Virginia’s CU-7 is due annually between January 1 and May 1 or can be filed optionally instead with Schedule A with Form 760, or Schedule NPY with Form 760PY. As with all states, Virginia has penalties and interest for non-filing, but Virginia’s use tax is no more practically enforceable than that of any other state.

Washington

Washington has a 6.5% statewide sales tax. As of January 1, 2009, sales tax is not applied on most food items and prescription medications (not including over-the-counter medications). Individual counties, municipalities and regional transit authorities are entitled to collect a sales tax, which vary from 0.5% to 2.5%. Within King County, the King County Food & Beverage (KCF&B) tax adds an additional .5% to food and beverages purchased in bars, taverns and restaurants resulting in an effective tax rate of 10.0% (9.5% on all other items).^[112] Additionally, the sale or lease of motor vehicles for use on the road incur an additional 0.3% tax, rental of a car for less than 30 days has an additional state/local tax of 8.9%.^[112] When renting a car for less than 30 days in Seattle, the total sales tax is 18.6%. When purchasing an automobile, if you trade in a car, the state subtracts the price of the trade when calculating the sales tax to be paid on the automobile (e.g., purchasing a $40,000 car and trading a $20,000 car, you would be taxed on the difference of $20,000 only, not the full amount of the new vehicle).

When staying at a hotel (60+ rooms capacity) in Seattle, the sales tax is 15.6%. Residents of Canada and US states or possessions (only US and Canadian locations having a sales tax of less than 3%, e.g., Oregon, Alaska & Alberta) are exempt from sales tax on purchases of tangible personal property for use outside the state. Stores at the border will inquire about residency and exempt qualified purchasers from the tax.^[113] Washington also has a Gross receipts tax called the Business and Occupations Tax (B&O).

Also, the seller of a house pays excise taxes on the full sale price. The amount of the varies by county. In King and Snohomish counties, it is up to 1.78%. For example, selling a house for $500K will cost you $8900 in taxes.

Residents of Washington who purchase goods for use in Washington must pay a use tax in lieu of a sales tax if any one of four conditions are true. If a Washington resident purchases goods and certain services in other states that do not charge a sales tax or charge a sales tax rate less than the sales tax rate in Washington, or if an out of state seller does not collect Washington sales tax, the resident must pay a use tax on all goods that will be used in Washington. Use tax must also be paid if a Washington resident purchases goods from a seller who is not authorized to collect sales tax or if personal property is acquired with the purchase of real property.^[114] Washington state does not typically pursue use tax collection for most purchases, however, in 2005, the Washington State Department of Revenue began to make a concerted effort to collect use tax on artworks acquired in other states.^[115]

The lowest combined state, county and municipality sales tax rate in Washington is 7.0% in most of Klickitat and Skamania Counties, while the highest combined sales tax in Washington is the 10% tax on prepared food and beverages in King County.

April 1, 2008 saw tax increases in King County (+.001), Kittitas County (+.003), Mason County (+.001), and the city of Union Gap (+.002).^[116]

On July 1, 2008, Washington stopped charging an origin-based sales tax, and started charging a destination-based sales tax. This change only applies to transactions beginning and ending within state lines and does not apply to other states.^[112] Additionally, Washington started collecting taxes from online retailers that have voluntarily agreed to start collecting the sales tax in return for not being sued for back taxes.^[117]

The city of Seattle charges a 7.5% tax on charges for parking garages to go toward mass transit.

On November 4, 2008, voters in King County (Seattle) approved a 0.5% increase in the sales tax. Taxes within the city were increased to 9.5% on retail purchases. This increase was supposed to be effective Jan. 1, 2009, but was pushed back until April 2009. (For the first quarter of 2009, the tax rate in Seattle was 9%.)

West Virginia

West Virginia has the distinction of being the first US state to enact a sales tax.^[2] It currently stands at 6%. The sales tax on food currently stands at 3%. Effective January 1, 2006, the sales tax on food was lowered to 5%, and on July 1, 2007, it was lowered further to 4%. The sales tax on food was again lowered to 3% on July 1, 2008.^[118] However, the reduced rate of tax does not apply to sales, purchases and uses by consumers of prepared food. Prescription drugs are not subject to sales tax. Credit is allowed for sales or use taxes paid to another state with respect to the purchase.

An individual who titles a motor vehicle with the West Virginia Division of Motor Vehicles must pay a $5.00 title fee and a 5 percent title privilege tax (rather than the 6 percent sales tax). For vehicles purchased new by West Virginia residents, the measure of this tax is the net sales price of the vehicle. For used vehicles, and for vehicles previously titled in other states, the tax is measured by the National Automobile Dealers Association book value of the vehicle at the time of registration. No credit is issued for any taxes paid to another state. Trailers, motorboats, all-terrain vehicles and snowmobiles are also subject to this tax.^[119] As of June 7, 2007, new residents of West Virginia no longer have to pay the 5 percent title privilege tax on vehicles, as long as the vehicles were validly titled to the same owner outside the state.^[120]

Wisconsin

Wisconsin has a 5% state sales tax, with most of the 72 counties charging an extra 0.5% “County Tax”. Five counties (Milwaukee, Ozaukee, Racine, Washington, Waukesha) have a 0.1% tax for purchases over $10 that funds the building of Miller Park in Milwaukee. Brown County (Green Bay) has a 0.5% tax for purchases over $10 which funds the reconstruction of Lambeau Field. The municipalities of Lake Delton, Wisconsin Dells, Bayfield, and Eagle River have also been authorized to adopt an additional 0.5% tax, due to their status as popular tourist destinations^[121]. In all cases, prescriptions, most non-prepared foods (including meat and dairy), and newspapers are exempt from sales tax, however over-the-counter medications, and certain types of repair and installation services are not.^[122]

Wyoming

Wyoming has a 4% state sales tax, with counties adding up to an additional 3%, resulting in a maximum rate of 7%. In addition, resort district areas have the option to impose an additional 3% tax. Food for domestic home consumption is exempt from sales tax.

State by state sales taxes

State	General Tax	+max local Surtax	Groceries	Prepared Food	Prescription Drug	Non-prescription Drug	Clothing
Alabama	4%	10%
Alaska	none	7%
Arizona	5.6%	10.6%
Arkansas	6%	6%	2%
California	8.75%	10.25%
Colorado	2.9%
Connecticut	6%	6%					> $50
Delaware	none	none
Florida	6%	7.5%		9% (max)
Georgia	4%	8%
Hawaii
Idaho	6%
Illinois	6.25%	11.5%	1%+		1%+	1%+
Indiana	7%	9%		9% (max)
Iowa[123]	6%	7%
Kansas	5.3%
Kentucky	6%	6%
Louisiana	4%
Maine	5%	5%		7%
Maryland	6%	6%
Massachusetts	6.25%	6.25%		7%			> $175
Michigan	6%	6%					6%
Minnesota	6.875%	7.5%		9.75% (max)
Mississippi	7%	9%
Missouri	4.225%	9.241%	1.225%
Montana	none	3%
Nebraska	5.5%	7%
Nevada	6.85%
New Hampshire	none	none		9%
New Jersey	7%	7%
New Mexico	none	none
New York	4%	8.875%					> $110
North Carolina	5.5%	8.25%	2%	9.25% (max)
North Dakota	5%
Ohio	7%	7.75%
Oklahoma	4.5%	5%	4.5%
Oregon	none	none		5% (max)
Pennsylvania	6%	8%
Puerto Rico	5.5%	7%
Rhode Island	7%	7%		8%
South Carolina	6%
South Dakota	4%
Tennessee	7%	9.75%	5.5%
Texas	6.25%	8.25%
Utah	4.75%
Vermont	6%	7%		10%			> $100
Virginia	4%	5%	2.5%	5%+
Washington	6.5%	9.5%		10%
West Virginia	6%	6%	3%
Wisconsin	5%	5.6%
Wyoming	4%	7%

Color	Explanation
	Exempt from general sales tax
	Subject to general sales tax
7%	Taxed at a higher rate than the general rate
3%	Taxed at a lower rate than the general rate
3%+	Some locations tax more
3% (max)	Some locations tax less
> $50	Taxed purchases over $50 (otherwise exempt)
	No state-wide general sales tax

(1) Some states tax food, but allow an (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.

Sales tax planning

In the United States, corporate sales tax planning may include the following:

• Determination of ways to legally reduce the amount of tax due on a transaction. For instance, how a company structures its invoices can affect the taxability of the entire transaction. Each U.S. state has different rules for applying sales tax. Some states laws are more advantageous to taxpayer for certain types of transactions. If a business operates in several states, choosing the best state to take delivery in can reduce or eliminate sales tax liability. In many states an item can become taxable if not separately stated on the invoice.
• Review of company purchases to determine which assets may qualify for exemptions. Finding overlooked exemptions often results in significant savings.
• Periodic review of procedures relating to Sales & Use Tax data gathering and retention so that proper supporting documentation, including exemption and resale certificates, are available in the event of a State audit.

See also

• Gross receipts tax
• Income tax in the United States
• Federal tax revenue by state
• Sales tax
• State income tax
• State tax levels
• Use tax
• Taxation in the United States
• US State NonResident Withholding Tax
• Federal spending and taxation across states

http://www.ancestorhunt.com/california-most-wanted.htm

We invite you to visit this site periodically and review the state’s Most Wanted Fugitives bulletins to help law enforcement apprehend dangerous fugitives by alerting law enforcement when you think you may have seen one of the fugitives on the Most Wanted list. If you have any information on a featured fugitive or other fugitives, we urge you to contact the Bureau of Investigation and Intelligence, Intelligence Operations Center (IOC) immediately.

The Wanted Persons System (WPS) was established in 1971 as the first online system for the California Department of Justice (DOJ). The WPS system provides information on arrest warrants and is used to alert law enforcement agencies of the possibility that a suspect may be a fugitive. This information may help to ensure the safety of officers who are attempting to apprehend fugitives.

In 1996, the Legislature authorized the California Department of Justice to maintain a publicly accessible Internet directory of wanted fugitives. This is not a comprehensive directory of all persons wanted for crimes in California.

Subscribe

You can now subscribe to the California Department of Justice – Office of the Attorney General’s Most Wanted Fugitives email list. Visit our subscription site for this and other informative email notifications from the Office of the Attorney General.

http://caag.state.ca.us/wanted/index.htm

	Are You a Victim of Identity Theft? Information and resources. http://www.invisus.com/id_victim.php
	Below is a helpful guide provided by Privacy Rights Clearinghouse to get your identity back. If you want to stay protected in the future, be sure to sign up for iDefend and let our identity specialists manage everything for you. Identity Theft: What to Do if It Happens to You You apply for a credit card and are turned down because of a low credit score, yet you know that you’ve always paid your accounts on time. A debt collector calls to demand payment on a six-month overdue account for a credit card you have never had. You receive a credit card in the mail that you’ve never applied for. What’s happening? You could be the victim of identity theft, where an imposter is using your personal information to obtain credit. Then when the thief does not pay the bills, the company itself or a debt collection company contacts you to demand payment. As a result, your credit report is likely to contain negative information about your bill-payment history, and your credit score has probably been lowered considerably, making it difficult or impossible to obtain new credit yourself. This guide provides victims of identity theft with instructions on how to regain your financial health and who to contact for more help. You must act quickly and assertively to minimize the damage. 1 Notify credit bureaus / fraud alerts 13. Passports 1a. Monitor your credit reports 14. Phone service 1b. Security freeze 15. Student loans 2. Law enforcement 16. Driver’s license number misuse 3. Federal Trade Commission 17. Identity theft involving those you know 4. New credit accounts 18. Medical identity theft 5. Existing accounts 19. Victim statements 6. Debt collectors 20. False civil and criminal judgments 7. Check and banking fraud 21. Legal help 8. ATM cards 22. Keep good records 9. Brokerage accounts 23. Dealing with emotional stress 10. Fraud involving U.S. mail 24. Making change 11. Secret service 25. Don’t give in 12. SSN misuse 26. Other useful tips 27. Resources 1. Notify credit bureaus and establish fraud alerts. Immediately report the situation to the fraud department of the three credit reporting companies — Experian, Equifax, and TransUnion. When you notify one bureau that you are at risk of being a victim of identity theft, it will notify the other two for you. Placing the fraud alert means that your file will be flagged and that creditors are required to call you before extending credit. Consider using a cell phone number if you have one. We recommend that you do not choose to call Experian. You will be subject to a marketing pitch for their “free” credit management tools. If you fail to cancel the service within 30 days, your credit card will automatically be charged for the service. Equifax: P.O. Box 740250, Atlanta, GA 30374- 0241. Report fraud: Call (888) 766-0008 and write to address above. TDD: (800) 255-0056 Web: www.equifax.com Experian: PO Box 9532 Allen TX, 75013 Report fraud: Call (888) EXPERIAN (888-397-3742) and write to address above. TDD: Use relay to fraud number above. Web: www.experian.com/fraud TransUnion: P.O. Box 6790, Fullerton, CA 92834-6790. Report fraud: (800) 680-7289 and write to address above. TDD: (877) 553-7803 E-mail (fraud victims only): fvad@transunion.com Web: www.transunion.com Under new provisions of the Fair Credit Reporting Act (FCRA, §605A) you can place an initial fraud alert for only 90 days. The credit bureaus will each mail you a notice of your rights as an identity theft victim. Once you receive them, contact each of the three bureaus immediately to request two things: a free copy of your credit report an extension of the fraud alert to seven years You may request that only the last four digits of your Social Security number (SSN) appear on the credit report. You must have evidence of attempts to open fraudulent accounts and an identity theft report (police report) to establish the seven-year alert. You may cancel the fraud alerts at any time. In all communications with the credit bureaus, you will want to refer to the unique number assigned to your credit report and use certified, return receipt mail. Be sure to save all credit reports as part of your fraud documentation file. Once you have received your three credit reports, examine each one carefully. Report fraudulent accounts and erroneous information in writing to both the credit bureaus and the credit issuers following the instructions provided with the credit reports. The FTC’s identity theft guide provides a sample letter to send to the credit bureaus requesting that fraudulent accounts be blocked. http://www.ftc.gov/bcp/edu/pubs/consumer/idtheft/idt04.pdf (scroll down to find letter) Once you notify the credit bureaus about the fraudulent accounts, the bureau is required to block that information from future reports. The bureau must also notify the credit grantor of the fraudulent account. (FCRA, §605B) Ask the credit bureaus for names and phone numbers of credit grantors with whom fraudulent accounts have been opened if this information is not included on the credit report. In addition, instruct the credit bureaus in writing to remove inquiries that have been generated due to the fraudulent access. You may also ask the credit bureaus to notify those who have received your credit report in the last six months to alert them to the disputed and erroneous information (two years for employers). Under California law, when you provide a copy of the police report to the credit bureaus, they must remove the fraudulent accounts from your credit report. (California Civil Code 1785.16(k)) 1a. Monitor your credit reports. Be aware that these measures may not entirely prevent new fraudulent accounts from being opened by the imposter. Credit issuers do not always pay attention to fraud alerts, even though the law now requires it. That is why we recommend that you check your credit reports again in a few months. The federal FACTA law enables you to receive a free credit report per year from each of the three credit bureaus. (FCRA §612) This is over and above the free reports you can order when you place fraud alerts on your three credit reports. Once you have received your free credit reports as a part of the fraud-alert process, follow up in a few months by taking advantage of your free FACTA copy. We recommend that you order your free credit reports by phone rather than using the online system. Call (877) 322-8228. For more on free credit reports, see http://www.ftc.gov/freereports and www.annualcreditreport.com. Laws in several states give individuals additional opportunities to obtain free credit reports. For confirmed identity theft victims who live in California, you can get one free report each month for the first 12 months upon request. (California Civil Code 1785.15.3) And in seven states, whether a victim or not, you can receive one free credit report each year under state law, over and above the free FACTA report you can receive yearly under federal law. These states are: Colorado, Georgia (2 per year), Maine, Maryland, Massachusetts, New Jersey, and Vermont. 1b. Security freeze. As of November 2007, individuals nationwide are able to “freeze” their credit reports with Equifax, Experian, and TransUnion. By freezing your credit reports, you can prevent credit issuers from accessing your credit files except when you give permission. This effectively prevents thieves from opening up new credit card and loan accounts. In most states, security freezes are available at no charge to identity theft victims and for a relatively small fee for non-victims. For state-by-state information on security freezes, visit this Consumers Union web page: www.consumersunion.org/campaigns//learn_more/003484indiv.html The California Office of Privacy Protection provides a guide on security freezes for Californians, www.oispp.ca.gov/consumer_privacy/consumer/documents/pdf/cis10securityfreeze.pdf. If your identity thief is aggressive and gives no indication of ceasing to use your identity to obtain credit, consider using the security freeze to reduce access to your credit file. The security freeze is free to victims of identity theft in most states. Non-victims who wish to activate the security freeze for prevention must pay a fee in most states. Some states make the security freeze available only to identity theft victims. 2. Law enforcement. Report the crime to your local police or sheriff’s department right away. You might also need to report it to police department(s) where the crime occurred if it’s somewhere other than where you live. Give them as much documented evidence as possible. Make sure the police report lists the fraudulent accounts . Get a copy of the report, which is called an “identity theft report” under the FCRA. Keep the phone number of your investigator handy and give it to creditors and others who require verification of your case. Credit card companies and banks may require you to show the report in order to verify the crime. FTC regulations define an “identity theft report” to include a report made to a local, state, or federal law enforcement agency. If your local police department refuses to file a report and your situation involves fraudulent use of the U.S. mail, you can obtain an identity theft report from the U.S. Postal Inspector. If your case involves fraudulent use of a driver’s license in your name, you might be able to obtain a report from your state’s Department of Motor Vehicles. The FTC has more information on identity theft reports at http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/defend.html 3. Federal Trade Commission. Report the crime to the FTC. Include your police report number. Although the FTC does not itself investigate identity theft cases, they share such information with investigators nationwide who are fighting identity theft. Call the FTC’s Identity Theft Hotline: (877) IDTHEFT (877-438-4338) Or use its online identity theft complaint form: https://www.ftccomplaintassistant.gov/ Or write: FTC Identity Theft Clearinghouse, 600 Pennsylvania Ave. N.W., Washington, DC 20580. The FTC’s uniform fraud affidavit form is available at http://www.ftc.gov/bcp/edu/resources/forms/affidavit.pdf Visit the Web site for the President’s Identity Theft Task Force for Identity Theft Victims’ Statement of Rights under federal law: www.idtheft.gov/ 4. What to do with new credit accounts opened by the imposter. If your credit report shows that the imposter has opened new accounts in your name, contact those creditors immediately by telephone and in writing. Recent amendments to the FCRA (§623(6)(B)) allow you to prevent businesses from reporting fraudulent accounts to the credit bureaus. The FTC provides a sample dispute letter at http://www.ftc.gov/bcp/conline/pubs/credit/fcb.shtm(scroll down). Creditors will likely ask you to fill out fraud affidavits. The FTC provides a uniform affidavit form that most creditors accept, http://www.ftc.gov/bcp/edu/resources/forms/affidavit.pdf. No law requires affidavits to be notarized at your own expense. You may choose to substitute witness signatures for notarization if creditors require verification of your signature. Ask the credit grantors in writing to furnish you and your investigating law enforcement agency with copies of the documentation, such as the fraudulent application and transaction records. Both federal and California law give you the right to obtain these documents. (FCRA § 609(e), and California Penal Code 530.8). The California Office of Privacy Protection provides instructions and sample letters on how to obtain documentation from credit grantors, http://www.oispp.ca.gov/consumer_privacy/consumer/documents/html/cis3aenglish.asp A victim of identity theft must provide a copy of the FTC affidavit or another affidavit acceptable to the business, plus government-issued identification, and a copy of an “identity theft report” (police report) in order to obtain the documents created by the imposter. The business must provide copies of these records to the victim within 30 days of the victim’s request at no charge. The law also allows the victim to authorize a law enforcement investigator to get access to these records. When you have resolved the fraudulent account with the creditor, ask for a letter stating that the company has closed the disputed account and has discharged the debts. Keep this letter in your files. You may need it if the account reappears on your credit report. You must also notify the credit bureaus about the fraudulent accounts. Instructions are provided in Section 1 above. 5. Handling problems with your existing credit or debit accounts. If your existing credit or debit accounts have been used fraudulently, report it in writing immediately to the credit card company. Request replacement cards with new account numbers. In addition to phoning the credit card company regarding the fraud, you will need to follow up in writing and will likely be asked to provide a fraud affidavit or a dispute form. Send the letter to the address given for “billing inquiries,” not the address for sending payments. Carefully monitor your mail and bills for evidence of new fraudulent activity. Report it immediately. Add secure passwords to all accounts . These should not be your mother’s maiden name or any word that is easily guessed.6. Debt collectors. If debt collectors try to get you to pay the unpaid bills on fraudulent accounts, ask for the name of the collection company, the name of the person contacting you, phone number, and address. Tell the collector that you are a victim of fraud and are not responsible for the account. Ask for the name and contact information for the referring credit issuer, the amount of the debt, account number, and dates of the charges. Ask if they need you to complete their fraud affidavit form or whether you can use the FTC affidavit. Follow up by writing to the debt collector explaining your situation. Ask that they confirm in writing that you do not owe the debt and that the account has been closed. Under new provisions in the FCRA, a debt collector must notify the creditor that the debt may be a result of identity theft. (§615(g)) The FCRA also prohibits the sale or transfer of a debt caused by identity theft. (§615(f)) 7. Check and banking fraud. If you have had checks stolen or bank accounts set up fraudulently, ask your bank to report it to ChexSystems, a consumer reporting agency that compiles reports on checking accounts. Also, place a security alert on your file (see web address below). Your bank should be able to provide you with a fraud affidavit. Put “stop payments” on any outstanding checks that you are unsure about. Close your checking account and other affected accounts and obtain new account numbers. Give the bank a password for your account (not mother’s maiden name, Social Security number, date of birth, pet’s name, sequential numbers, or any other easily guessed words). Phone: (800) 428-9623. Fax: (602) 659-2197 Web: https://www.consumerdebit.com/consumerinfo/us/en/index.htm To place a security alert on your ChexSystems report: https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/theftaffidavit/index.htm Write: ChexSystems Inc., Attn: Consumer Relations, 7805 Hudson Rd., Suite 100, Woodbury, MN 55125. If your own checks are rejected at stores where you shop, contact the check verification company that the merchant uses. The major ones are listed here. Fidelity National Information Services (was Certegy) (800) 437-5120 www.fidelityinfoservices.com SCAN (800) 262-7771 www.consumerdebit.com TeleCheck For annual file disclosure Fraud, id theft department (800) 366-2425 (800) 835-3243 (800) 710-9898 www.telecheck.com CrossCheck (800) 843-0760 www.cross-check.com Under a new federal law, you now have a right to obtain any reports that these companies compile about you. For ChexSystems and any of the check verification companies listed here that you have had to contact as a result of your identity theft situation, we recommend that you request a copy of your file once a year. Make sure your file has been corrected. If not, you will find it difficult to open new bank accounts and/or write checks. 8. ATM cards. If your ATM or debit card has been stolen or compromised , report it immediately. Contact your bank and fill out a fraud affidavit. Get a new card, account number, and password. Do not use your old password. Closely monitor your account statements. You may be liable if the fraud is not reported quickly. Start with a phone call and immediately follow up in writing. Be sure to read the debit card contract for information about liability. Some cards are better protected in cases of fraud than others. ATM and debit card transactions are subject to the Electronic Fund Transfer Act. (15 USC §1693) Even if you are a victim of identity theft, your liability for charges can increase the longer the crime goes unreported. For more on EFTA, see the Federal Reserve Board’s guide, www.federalreserve.gov/pubs/consumerhdbk/electronic.htm. Also read the FTC’s guide on electronic banking, http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre14.shtm9. Brokerage accounts. You do not have the same protections against loss with brokerage accounts as you do with credit and debit card or bank accounts. The Securities Investor Protection Corporation ( www.sipc.org ) restores customer funds only when a brokerage firm fails. If an identity thief or other fraudster targets your brokerage account, refer to your account agreement for information on what to do. Immediately report the incident to the brokerage company and notify the Securities and Exchange Commission, www.sec.gov Also notify the Financial Industry Regulatory Association, formerly NASD, www.finra.org. To protect against fraud, put a password on each of your investment accounts. 10. Fraud involving U.S. mail. Notify the local Postal Inspector if you suspect an unauthorized change of your address with the post office or if the U.S mail has been used to commit fraud. Find out where fraudulent credit cards were sent. Notify the local Postmaster to forward all mail in your name to your own address. You may also need to talk with the mail carrier. Call the U.S. Postal Service to find the nearest Postal Inspector at (800) 275-8777 or visit its web site at http://postalinspectors.uspis.gov/. The online complaint form is available at https://postalinspectors.uspis.gov/forms/MailFraudComplaint.aspx. Or you can mail your complaint to: U.S. Postal Service, Criminal Investigations Service Center, Attn: Mail Fraud, 222 S. Riverside Plaza Suite 1250, Chicago, IL 60606-6100. 11. Secret Service. The U.S. Secret Service has jurisdiction over financial fraud. But, based on U.S. Attorney guidelines, it usually does not investigate individual cases unless the dollar amount is high or you are one of many victims of a fraud ring. To interest the Secret Service in your case, you may want to ask the fraud department of the credit card companies and/or banks, as well as the police investigator, to notify the Secret Service agent they work with. www.treas.gov/usss/financial_crimes.shtml 12. Social Security number (SSN) misuse. The Social Security Administration (SSA) does not in most cases provide assistance to identity theft victims. But be sure to contact the SSA Inspector General to report Social Security benefit fraud, employment fraud, or welfare fraud. Social Security Administration online complaint form: www.socialsecurity.gov/oig SSA fraud hotline: (800) 269-0271 By mail: SSA Fraud Hotline, P.O. Box 17768, Baltimore, MD 21235 As a last resort, you might try to change your number, although we don’t recommend it except for very serious cases . The SSA will only change the number if you fit their fraud victim criteria. See the Identity Theft Resource Center’s Fact Sheet 113 for more information, http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_113_Social_Security_Number.shtml If your SSN card has been stolen or lost, order a replacement. Complete the SSA’s application available at www.socialsecurity.gov/online/ss-5.html or by calling the SSA at (800) 772-1213, or by visiting your local SSA office. You will need to provide the required documentation such as birth certificate and government ID at your local SSA office to get a replacement card. 13. Passports. Whether you have a passport or not, write to the passport office to alert them to anyone ordering a passport fraudulently. U.S. Dept. of State, Passport Services, Consular Lost/Stolen Passport Section, 1111 19th St., NW, Suite 500, Washington, DC 20036. Website: www.travel.state.gov/passport/lost/lost_849.html 14. Phone service. Identity thieves often establish fraudulent cell phone accounts, with monthly bills going unpaid. The imposter might also have opened local and long distance telephone accounts. If the imposter has obtained phone account(s) in your name, contact the phone company for information on how to report the situation. The steps that you take to clear your name with both the phone company and credit bureaus are much the same as with credit card accounts described above in steps one and three. For AT&T, the fraud hotline is (866) 718-2011. If your calling card has been stolen or there are fraudulent charges, cancel it and open a new account. For your own phone accounts, add a password that must be used any time your local, cell phone, and long distance accounts are changed.15. Student loans. If an identity thief has obtained a student loan in your name, report it in writing to the school that opened the loan. Request that the account be closed. Also report it to the U.S. Dept. of Education: Call: U.S. Dept. of Education Inspector General’s Hotline: (800) MISUSED (800-647-8733) Write: Office of Inspector General, U.S. Dept. of Education, 400 Maryland Ave., SW, Washington, DC 20202-1510. Web: www.ed.gov/about/offices/list/oig/hotline.html?src=rt 16. Driver’s license number misuse. You may need to change your driver’s license number if someone is using yours as ID on bad checks or for other types of fraud. Call the Department of Motor Vehicles (DMV) to see if another license was issued in your name. Put a fraud alert on your license if your state’s DMV provides a fraud alert process. Go to your local DMV to request a new number. Fill out the DMV’s complaint form to begin the investigation process. Send supporting documents with the completed form to the nearest DMV investigation office. California DMV fraud unit, www.dmv.ca.gov/consumer/fraud.htm. Phone: (866) 658-5758. Outside Calif.: (916) 657-2274. E-mail: dlfraud@dmv.ca.gov The California DMV actually encourages victims to contact them to place “a control” (alert) on their license whenever it is lost or stolen (rather than waiting until they find out it has been misused). It affects only DMV transactions DMVs in other states: http://www.usa.gov/Topics/Motor_Vehicles.shtml (scroll down) 17. Identity theft involving family members and others you know. If a deceased relative’s information is being used to perpetrate identity theft, or if you personally know the identity thief, additional information about how to address these situations is available in other fact sheets. Visit the Identity Theft Resource Center web site: When you know the perpetrator (family member, acquaintance), http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_115_When_ you_personallyknow_the_identity_thief.shtml ID theft of the deceased, http://www.idtheftcenter.org/artman2/publish/c_tips/Fact_Sheet_ 117_IDENTITY_THEFT_AND_THE_DECEASED_-_PREVENTION_AND_VICTIM_TIPS.shtml Children and ID theft, http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_120.shtml 18. Medical identity theft. Medical identity theft occurs when someone uses your name, Social Security number, or other personal information to obtain health care or medical products. Another variation involves false claims for medical care made to your health insurer, again using your personal information. Like other forms of identity theft, victims of medical identity theft may first become aware of a problem with a call from a debt collector. Medical identity theft can be particularly insidious since remedies involve cleaning up your medical records as well as your credit reports. For a full discussion of the crime of medical identity theft as well as steps to take if you are a victim, visit the Web site of the World Privacy Forum, www.worldprivacyforum.org 19. Victim statements. If the imposter is apprehended by law enforcement and stands trial and/or is sentenced, write a victim impact letter to the judge handling the case. Contact the victim-witness assistance program in your area for further information on how to make your voice heard in the legal proceedings. Read the Identity Theft Resource Center’s Fact Sheet 111, http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_111_Victim_Impact_Statements.shtml 20. False civil and criminal judgments. Sometimes victims of identity theft are wrongfully accused of crimes that were committed by the imposter. If you are wrongfully arrested or prosecuted for criminal charges, contact the police department and the court in the jurisdiction of the arrest. Also contact your state’s Department of Justice and the FBI to ask how to clear your name. If a civil judgment is entered in your name for your imposter’s actions, contact the court where the judgment was entered and report that you are a victim of identity theft. 21. Legal help. You may want to consult an attorney to determine legal action to take against creditors, credit bureaus, and/or debt collectors if they are not cooperative in removing fraudulent entries from your credit report or if negligence is a factor. Call the local Bar Association (www.abanet.org/premartindale.html), a Legal Aid office in your area (for low-income households), or the National Association of Consumer Advocates (www.naca.net) to find an attorney who specializes in consumer law, the Fair Credit Reporting Act, and the Fair Credit Billing Act. If you are a senior citizen or take care of a dependent adult, be sure to contact an elder law service or the nearest Aging and Independent Services program. Many district attorneys have an elder abuse unit with expertise in financial crimes against seniors.22. Keep good records. In dealing with the authorities and financial companies, keep a log of all conversations, including dates, names, and phone numbers. Note the time you spent and any expenses incurred in case you are able to seek restitution in a later judgment or conviction against the thief. You may be able to obtain tax deductio ns for theft-related expenses (26 U.S.C. §165(e) — consult your accountant). Confirm all conversations in writing. Send correspondence using certified mail with return receipt requested. Keep copies of all letters and documents. Visit these web sites for tips on organizing your case: FTC’s guide Take Charge, http://www.ftc.gov/bcp/edu/pubs/consumer/idtheft/idt04.shtm Identity Theft Resource Center, http://www.idtheftcenter.org/artman2/publish/v_fact_sheets/Fact_Sheet_106_Organizing_ Your_Identity_Theft_Case.shtml 23. Dealing with emotional stress. Psychological counseling may help you deal with the stress and anxiety commonly experienced by victims. Know that you are not alone. Contact the Identity Theft Resource Center for information on how to network with other victims and deal with the impact of this crime. www.idtheftcenter.org 24. Making change. Write to your state and federal legislators. Demand stronger privacy protection and prevention efforts by creditors and credit bureaus. 25. Don’t give in. Do not pay any bill or portion of a bill that is a result of fraud. Do not cover any checks that were written or cashed fraudulently. Do not file for bankruptcy. Your credit rating should not be permanently affected. No legal action should be taken against you. If any merchant, financial company or collection agency suggests otherwise, restate your willingness to cooperate, but don’t allow yourself to be coerced into paying fraudulent bills. Report such attempts to government regulators immediately. 26. Other Useful Tips If you are in the military, place an active duty alert on your credit report When you are away from your usual duty station, you can place an active duty alert on your three credit reports as an extra protection against identity theft. The alert remains on your credit reports for 12 months. Contact the fraud departments for the three credit bureaus. Those phone numbers are provided in Section 1 above. Order your free credit report Whether or not you are a victim of identity theft, take advantage of your free annual credit reports, now a requirement of federal law. Phone: (877) 322-8228 Web: www.annualcreditreport.com FTC’s guide: http://www.ftc.gov/freereports Opt out of pre-approved offers of credit for all three credit bureaus Call (888) 5OPTOUT (888-567-8688). You may choose a five-year opt-out period or permanent opt-out status. Or opt-out online, www.optoutprescreen.com Remove your name from mail marketing lists (Direct Marketing Association) Write: Mail Preference Service, P.O. Box 643, Carmel, NY 10512. Include check or money order for $1. Web: www.dmachoice.org. There is no charge when registering online. Remove your phone number(s) from telemarketing lists Phone the FTC’s Do Not Call Registry: (888) 382-1222 Online registration: www.donotcall.gov Order your earnings report from the Social Security Administration Order your Personal Earnings and Benefits Estimate Statement if you suspect an identity thief has used your SSN for employment: (800) 772-1213. The SSA automatically mails it to individuals three months before the birthday each year. www.ssa.gov/online/ssa-7004.html For information on reporting fraud to the SSA, read tip 12 above. Check your ID Score Track the possible misuse of your identity at the free service My ID Score, www.myidscore.com . 27. Resources Federal Trade Commission (FTC) Read its guide, Take Charge: Fighting Back Against Identity Theft, http://www.ftc.gov/bcp/edu/pubs/consumer/idtheft/idt04.pdf. Online information and complaint form: www.consumer.gov/idtheft FTC uniform fraud affidavit form: www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf Identity Theft Hotline: (877) IDTHEFT (877-438-4338) Write: FTC Identity Theft Clearinghouse, 600 Pennsylvania Ave. N.W., Washington, DC 20580 President’s Identity Theft Task Force (www.idtheft.gov/) Read Identity Theft Victims’ Statement of Rights, www.ftc.gov/bcp/edu/microsites/idtheft/consumers/rights.html Read publication, “Taking Action,” for information on what federal government agencies are doing to combat identity theft, www.idtheft.gov/takeaction.html Federal Agencies and Technology Industry For tips on online safety, visit www.onguardonline.gov Identity Theft Resource Center (ITRC) Guides for victims, www.idtheftcenter.org (Click on Victim Resources.) Phone: (858) 693-7935 Web: www.idtheftcenter.org E-mail: itrc@idtheftcenter.org Write: P.O. Box 26833, San Diego, CA 92196 U.S. PIRG and the State PIRGs Read its model legislation for identity theft prevention, www.pirg.org/consumer/credit/model.htm Web: www.pirg.org/consumer/credit California Office of Privacy Protection Web: www.privacy.ca.gov ID theft guides in English and Spanish, www.privacy.ca.gov/cover/identitytheft.htm Phone: (866) 785-9663 Write: California Office of Privacy Protection, Dept. of Consumer Affairs, 1625 North Market Blvd. Suite N324, Sacramento, CA 95834 Identity Theft Survival Kit Mari Frank, Esq., author of From Victim to Victor: A Step-by-Step Guide for Ending the Nightmare of Identity Theft and Safeguard Your Identity: Protect Yourself with a Personal Privacy Audit Web: www.identitytheft.org Phone: (800) 725-0807 U.S. Dept. of Justice. The DOJ prosecutes federal identity theft cases. Web: http://www.usdoj.gov/criminal/fraud/websites/idtheft.html FBI Internet Fraud Complaint Center. The Internet Crime Complaint Center (IC3), a partnership between the FBI and the National White Collar Crime Center, allows you to report suspected cases of Internet and e-commerce fraud, including phishing. Web: www.ic3.gov http://www.invisus.com/id_victim.php