title: Sales taxes in the United States

text: Many states tax rental of tangible personal property. Often the tax is not dependent on the use to which the property will be put. Only Florida charges sales tax on the rental of commercial real estate.


title: Sales taxes in the United States

text: Many states exempt charitable, religious, and certain other organizations from sales or use taxes on goods purchased for the organization's use. Generally such exemption does not apply to a trade or business conducted by the organization.


title: Sales taxes in the United States

text: The states imposing sales taxes also impose a similar tax on buyers of taxable property or services in those cases where sales tax is not paid. Use taxes are functionally equivalent to sales taxes. The sales and use taxes, taken together, "provide a uniform tax upon either the sale or the use of all tangible personal property irrespective of where it may be purchased." Some states permit offset of sales taxes paid in other states on the purchased goods against use tax in the taxpayer's state.


title: Sales taxes in the United States

text: The amount subject to sales tax is generally the net sales price. Such price is generally after any applicable discounts.


title: Sales taxes in the United States

text: No state imposes sales tax on all types of goods. State laws vary widely as to what goods are subject to tax. Food for preparation and consumption in the home is often not taxable, nor are prescription medications. By contrast, restaurant meals are often taxed.


title: Sales taxes in the United States

text: Many states provide exemptions for some specific types of goods and not for other types. Certain types of foods may be exempt, and certain types taxable, even when sold in a grocery store for home consumption. Lists of what goods are taxable and what are not may be voluminous.


title: Sales taxes in the United States

text: Most states tax some services, and some states tax many services. However, taxation of services is the exception rather than the rule. Few states tax the services of a doctor, dentist, or attorney. Services performed in connection with sale of tangible personal property are often taxed. Most states, however, tax services that are an integral part of producing goods, such as printing or cabinet making.


title: Sales taxes in the United States

text: Telecommunications services are subject to a tax similar to a sales tax in most states. Only a few states tax internet access or other information services. Construction services are rarely taxed by states. Materials used in construction of real property may be subject to sales tax to the builder, the subcontractor, or the person engaging the builder, or may be wholly exempt from sales tax.


title: Sales taxes in the United States

text: Most sales tax laws do not apply to most payments for intangible property. Some states tax certain forms of intangible property transfers or licenses. A common transaction subject to sales tax is license of "shrink wrap" software. State courts have often found that numerous transfers of intangible rights are to be considered subject to sales tax where not specifically exempted.


title: Sales taxes in the United States

text: All states exempt from sales or use tax purchases of goods made for resale in the same form. In many states, resale includes rental of the purchased property. Where the purchased property is not exactly the property resold, the purchase may be taxable. Further, use of the property before sale may defeat the resale exemption. Goods purchased for free distribution may be taxed on purchase in some states, and not in others.


title: Sales taxes in the United States

text: Goods purchased to be used as ingredients in manufacturing tangible personal property are generally not taxable. Purchases of food by a restaurant generally are not taxable in those states that tax sales by restaurants, even though the ingredients are transformed. Steel purchased to be part of machines is generally not taxable. However, supplies consumed by the same businesses may be taxable. Criteria vary widely by state.


title: Sales taxes in the United States

text: Purchase of goods to be provided as part of performance of services may be taxed. Airlines and hotels may be taxed on purchases of food to be provided as part of their services, such as in-flight meals or free breakfast. Where there is a separate charge for such goods, they may be considered purchased for resale.


title: Sales taxes in the United States

text: Since services and intangibles are typically not taxed, the distinction between a taxable sale of tangible property and a nontaxable service or intangible transfer is a major source of controversy. Many state tax administrators and courts look to the "true object" or "dominant purpose" of the transaction to determine if it is a taxable sale. Some courts have looked at the significance of the property in relation to the services provided. Where property is sold with an agreement to provide service (such as an extended warranty or service contract), the service agreement is generally treated as a separate sale if it can be purchased separately. Michigan and Colorado courts have adopted a more holistic approach, looking at various factors for a particular transaction.


title: Sales taxes in the United States

text: Sales taxes are collected by vendors in most states. Use taxes are self assessed by purchasers. Many states require individuals and businesses who regularly make sales to register with the state. All states imposing sales tax require that taxes collected be paid to the state at least annually. Most states have thresholds at which more frequent payment is required. Some states provide a discount to vendors upon payment of collected tax.


title: Sales taxes in the United States

text: Sales taxes collected in some states are considered to be money owned by the state, and consider a vendor failing to remit the tax as in breach of its fiduciary duties. Sellers of taxable property must file tax returns with each jurisdiction in which they are required to collect sales tax. Most jurisdictions require that returns be filed monthly, though sellers with small amounts of tax due may be allowed to file less frequently.


title: Sales taxes in the United States

text: Sales tax returns typically report all sales, taxable sales, sales by category of exemption, and the amount of tax due. Where multiple tax rates are imposed (such as on different classes of property sold), these amounts are typically reported for each rate. Some states combine returns for state and local sales taxes, but many local jurisdictions require separate reporting. Some jurisdictions permit or require electronic filing of returns.


title: Sales taxes in the United States

text: Purchasers of goods who have not paid sales tax in their own jurisdiction must file use tax returns to report taxable purchases. Many states permit such filing for individuals as part of individual income tax returns.


title: Sales taxes in the United States

text: Purchasers are required to pay sales tax unless they present the seller with certification that the purchase is exempt from tax (exemption certificate). The certificate must be on a form approved by the state. 38 states have approved use of the Multistate Tax Commission's Uniform Sales and Use Tax Certificate.


title: Sales taxes in the United States

text: Exemptions typically fall into two categories: usage based or entity based. Use based exemptions are when an otherwise taxable item or service is used in a manner that has been deemed exempt. The resale exemption is the most common use based exemption. Other use based exemptions could be items or services to be used in manufacturing, research & development, or teleproduction. Entity based exemptions are when the item or service is exempt solely because the purchaser falls into a category the state has granted an exempt status. Exempt entities could be government (federal, state or local), non-profit organizations, religious organizations, tribal governments, or foreign diplomats. Every state decides for themselves which use based and entity based exemption they will grant.


title: Sales taxes in the United States

text: Persons required to file sales or use tax returns who do not file are subject to penalties. Persons who fail to properly pay sales and use tax when due are also subject to penalties. The penalties tend to be based on the amount of tax not paid, and vary by jurisdiction.


title: Sales taxes in the United States

text: All states imposing sales taxes examine sales and use tax returns of many taxpayers each year. Upon such audit, the state may propose adjustment of the amount of tax due. Taxpayers have certain rights of appeal, which vary by jurisdiction. Some states require payment of tax prior to judicial appeal, and some states consider payment of tax an admission of the tax liability.


title: Sales taxes in the United States

text: Under two now-overturned Supreme Court decisions, "Quill Corp. v. North Dakota" (1992) and "National Bellas Hess v. Illinois" (1967), states were not allowed to charge sales tax on sellers who did not have a physical presence or "nexus" in the state, such as companies doing mail order, online shopping, and home shopping by phone. Some states do attempt to charge consumers an identical per-transaction use tax instead, but compliance is relatively low due to the difficulty of enforcement. The June 2018 decision "South Dakota v. Wayfair" reversed this interpretation of the Commerce Clause, allowing states to collect sales tax from out-of-state merchants when the consumer is in the state.


title: Sales taxes in the United States

text: Several state constitutions impose limitations on sales tax. These limitations restrict or prohibit the taxing of certain items, such as food.


title: Sales taxes in the United States

text: Sales tax rates and what is taxed vary by jurisdiction. The following table compares taxes on selected classes of goods in the states. Significant other differences apply. Following the table is abbreviated coverage of selected sales tax rates by state.


title: Sales taxes in the United States

text: Alabama has a state general sales tax of 4%, plus any additional local city and county taxes. , the highest total general sales tax rate in Alabama is in the portions of Arab that are in Cullman County, which total to 13.5%. Alabama is one of the last three states to still tax groceries at the full state sales tax rate, which disproportionately affects minorities and low income families with children.


title: Sales taxes in the United States

text: There is no state sales tax in Alaska; however, local governments – which include boroughs, the Alaska equivalent of counties, and municipalities – may levy up to 7.5 percent. As of January 2009, 108 of them do so. Municipal sales taxes are collected in addition to borough sales taxes, if any. Regulations and exemptions vary widely across the state. The two largest cities, Anchorage and Fairbanks, do not charge a local sales tax. The state capital, Juneau, has a 5 percent sales tax rate.


title: Sales taxes in the United States

text: Arizona has a transaction privilege tax (TPT) that differs from a true sales tax in that it is a gross receipts tax, a tax levied on the gross receipts of the vendor and not a liability of the consumer. 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 16 tax classifications, but most retail transactions are taxed at 6.6%.


title: Sales taxes in the United States

text: Cities and counties can add as much as 6 percent to the total rate. Food for home consumption, prescription drugs (including prescription drugs and certain prescribed homeopathic remedies), and many other items of tangible personal property are exempt from the state retail TPT; 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. Phoenix, the capital and largest city, has a 2% TPT rate.


title: Sales taxes in the United States

text: A use tax applies to purchases made from out-of-state online retailers and catalogs. A law passed in July 2011 requires Arizona residents to declare how much use tax they owe.


title: Sales taxes in the United States

text: Indian reservations in Arizona have their own sales taxes, and these are some of the highest sales tax rates in the United States. The highest sales tax in the country as of 2012, 13.725%, was found in Tuba City.


title: Sales taxes in the United States

text: Arkansas has a state sales tax of 6.50%. City taxes range from an additional 0.25% to 3.5% and county taxes could be as much as 3.25%. Including city and county taxes, the highest sales tax rate is 11.625% in the portions of Mansfield that are in Scott County.


title: Sales taxes in the United States

text: Effective January 1, 2019, Arkansas' state sales tax on unprepared food (groceries) was reduced to 0.125% (1/8 of 1%) from 1.5%. Sales taxes on groceries had previously been reduced to 1.5% from 2% on July 1, 2011, to 2% from 3% on July 1, 2009, and to 3% from 6% on July 1, 2007. Local sales taxes on groceries remained unchanged.


title: Sales taxes in the United States

text: California, from 1991 to 2012 and since 2017, has a base sales tax of 7.25%, composed of a 6% state tax and a 1.25% uniform local tax. California is ranked as having the tenth highest average combined state and local sales tax rate in the United States at 8.25%. As of July 2019, the city's rates vary, from 7.25% to 10.5% (Santa Fe Springs). Sales and use taxes are collected by the California Department of Tax and Fee Administration (prior to July 2017, those taxes were collected by the California State Board of Equalization). Income and franchise taxes are collected separately by the California Franchise Tax Board.


title: Sales taxes in the United States

text: In general, sales tax is required on all purchases of tangible personal property to its ultimate consumer. Medical devices such as prosthetics and dental implant fixtures are exempt from sales tax with the exception of prosthetic teeth such as dentures, dental orthotics/orthopedic devices, and dental crowns which the state treats as personal property. Grocery goods, bakery items, hot beverages, candies, livestock, crops and seeds, fertilizer used to grow food, certain devices related to alternative energy, and one-time sales are also exempt from sales tax.


title: Sales taxes in the United States

text: Colorado's state sales tax is 2.9% with some cities and counties levying additional taxes. Denver's tangibles tax is 3.62%, with food eaten away from the home being taxed at 4%, most unprepared food (groceries) are exempt. A football stadium tax which expired December 31, 2011, but still has a mass transit tax, and scientific and cultural facilities tax. The total sales tax varies by city and county. Total sales tax on an item purchased in Falcon, Colorado, would be 5.13% (2.9% state, 1.23% county, and 1% PPRTA). The sales tax rate in Larimer County is roughly 7.5%. Most transactions in Denver and the surrounding area are taxed at a total of about 8%. The sales tax rate for non food items in Denver is 7.62%. Food and beverage items total 8.00%, and rental cars total 11.25%.


title: Sales taxes in the United States

text: Connecticut has a 6.35% sales tax, raised from 6 percent effective July 1, 2011, 6.25% to the state, 0% to the county and 0.1% to the city/town. Most non-prepared food products are exempt, as are prescription medications, all internet services, all magazine and newspaper subscriptions, and textbooks (for college students only). Also compact fluorescent light bulbs are tax exempt per Connecticut state law.


title: Sales taxes in the United States

text: Shipping and delivery charges, including charges for US 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.


title: Sales taxes in the United States

text: Delaware does not assess a sales tax on consumers. The state does, however, impose a tax on the gross receipts of most businesses, and a 4.25% document fee on vehicle registrations. Business and occupational license tax rates range from 0.096 percent to 1.92 percent, depending upon the category of business activity.


title: Sales taxes in the United States

text: District of Columbia, has a sales tax rate of 5.75% as of October 1, 2013. The tax is imposed on sale of tangible personal property and selected services. (Non-prepared food, including bottled water and pet food, is not subject to the sales tax; however, soda and sports drinks are subject to the sales tax.) A 10% tax is imposed on liquor sold for off premises consumption, 10% on restaurant meals (including carry-out) and rental cars, 18% on parking, and 14.5% on hotel accommodations. Portions of the hotel and restaurant meals tax rate are allocated to the Convention Center Fund. Groceries, prescription and non-prescription drugs, and residential utilities services are exempt from the district's sales tax.


title: Sales taxes in the United States

text: The district once had two sales tax holidays each year, one during "back-to-school" and one immediately preceding Christmas. The "back to school" tax holiday was repealed on May 12, 2009.


title: Sales taxes in the United States

text: On January 1, 2010, the district began levying a 5-cent-per-bag tax on each plastic or paper bag provided by a retailer at the point of sale, if that retailer sells food or alcohol. The retailer retains one cent of the tax, or two cents if it offers a refund to customers for bringing their own bags. The remaining three or four cents goes to the district's Anacostia River cleanup fund.


title: Sales taxes in the United States

text: Florida has a general sales tax rate of 6%. Miami-Dade County, like most Florida counties, has an additional county sales surtax of 1%. 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.


title: Sales taxes in the United States

text: Sales tax and discretionary sales surtax are calculated on each taxable transaction. Florida uses a bracket system for calculating sales tax when the transaction falls between two whole dollar amounts. Multiply the whole dollar amount by the tax rate (6 percent plus the county surtax rate) and use the bracket system to figure the tax on the amount less than a dollar. The Department of Revenue has rate tables (Form DR-2X) to assist residents.


title: Sales taxes in the United States

text: A "discretionary sales surtax" may be imposed by the counties of up to 2.5%, charged at the rate of the destination county (if shipped). This is 1% in most counties, 0.5% in many, and 1.5% in a few such as Leon. Effective in 2019, Hillsborough County's surtax rate was raised to 2.5%. A few counties have no additional surtax. 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. Most counties levy the surtax for education or transportation improvements.


title: Sales taxes in the United States

text: There are annual sales tax holidays, such as a back-to-school tax holiday in August on clothing, shoes and school supplies under a certain price that may change each year, as well as one in June 2007 to promote hurricane preparedness. The 2008 Legislators did not enact any sales tax holidays.


title: Sales taxes in the United States

text: Florida also permits counties to raise a "tourist development tax" of up to an additional 13% for stays of 6 months or less on any hotel, apartment hotel, motel, resort motel, apartment, apartment motel, rooming house, mobile home park, recreational vehicle park, condominium, or timeshare resort.


title: Sales taxes in the United States

text: In May 2010, Florida passed a law that capped sales tax on boats or vessels to a maximum of $18,000, regardless of the purchase price. This was to encourage owners not to leave the State after purchase or to flag "offshore" which most owners were doing prior to the passing of this law. As a result, the Florida Dept. of Revenue has seen a dramatic increase in sales tax revenues from the sale of boats.


title: Sales taxes in the United States

text: Florida is the only state to charge sales tax on the rental of real estate, commercial or residential, raising more than a billion dollars a year from the tax. Residential rentals of more than six months are exempted from the tax.


title: Sales taxes in the United States

text: Georgia has had a 4% state sales tax rate since April 1, 1989, when it was raised from 3%. Services (including postage but not shipping) and prescription drugs are not taxed at all, while over-the-counter drugs, drugstore medical devices, and other basic needs are fully taxed. Since the 1990s, groceries (packaged foods not intended for on-premises consumption) are exempt from the state sales tax, but still subject to the local sales tax rate. Since the early 2010s, items "prepared" in grocery stores (even those without cafés), such as fresh bread from the bakery, are taxed as if they were not grocery items, despite clearly being basic needs for consumption at home.


title: Sales taxes in the United States

text: Counties in Georgia 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 special-purpose tax (SPLOST) for specific project lists, a general-purpose LOST, a homestead exemption (HOST), and an educational one for public schools (ELOST) which can be put forth for a referendum by the school boards (the county's and any of its cities' must agree), instead of the county commission (in cooperation with its city councils) as the other taxes are. Also, the city of Atlanta imposes an additional 1% municipal-option sales tax (MOST), as allowed by special legislation of the Georgia General Assembly, and last renewed by voters in the February 2016 presidential primaries until 2020. This is for fixing its water and sewerage systems, mainly by separating storm sewers from sanitary sewers. In April 2016, a November referendum for an extra half percent was signed into law for MARTA, but only for the city of Atlanta, after legislators from the wealthy northern suburbs refused to allow the bill to advance unless their districts were excluded. This essentially limits the use of the funds to the Atlanta Beltline through 2057, being the only expansion project needed within the city limits, and blocking an extension of the north (red) line to Roswell and Alpharetta where it is most needed to relieve congestion.


title: Sales taxes in the United States

text: As of March 2016, total sales tax rates in Georgia are 3% for groceries and 7% for other items in 107 of its 159 counties. Seven counties charge only 2% local tax (6% total on non-grocery items), and no county charged zero or 1%, but 45 now charge 4% (8% total) due to the TSPLOSTs. Some partially (but none fully) exempt groceries from the local tax by charging 1% less on non-restaurant food than on other items. Fulton and DeKalb (and since 2015, Clayton) 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 4% and 3% respectively on groceries and 8% on other items due to the MOST, and DeKalb's exemption of groceries from the HOST. Towns and Muscogee counties listed an "other" tax as one of their three 1% taxes.


title: Sales taxes in the United States

text: Starting in 2012, regions defined by a new law were each allowed to vote for a TSPLOST sales tax for funding transportation projects, including public transportation and rapid transit (which only play a significant role in metro Atlanta, and are constitutionally blocked from using the state's fuel tax revenues). Most of the regions voted against it, except for the three regions of middle Georgia from Columbus to Augusta. The TSPLOST is not subject to the 3% limit on local taxes, making the local rate in those counties up to 8%. In 2015, the situation for alternative transportation in the state was made even worse when the per-gallon excise tax was raised and the sales tax was eliminated on gasoline, blocking even more state funding from being used for traffic-reducing investments like commuter rail and others.


title: Sales taxes in the United States

text: Similar to Florida and certain other states, Georgia used to have two sales-tax holidays per year, starting in 2002. One was for back-to-school sales the first weekend in August, but sometimes starting at the end of July. A second usually occurred in October, for energy-efficient home appliances with the Energy Star certification. There were no sales-tax holidays in 2010 and 2011, but they were reinstated in 2012 after the worst of the late-2000s recession had passed.


title: Sales taxes in the United States

text: Starting in 2013, Georgia now imposes a one-time title ad valorem tax (TAVT) on all vehicles sold within the state (both dealer and private sales are included in this tax). The TAVT is based on the fair market value of the vehicle. However, Georgia no longer charges sales tax on motorized vehicles, and those purchases that fall into the TAVT taxation system no longer pay the annual ad valorem taxes on vehicles. Essentially, the new TAVT combined the annual vehicle ad valorem tax and sales tax on vehicles. Non-motorized vehicles do not qualify for the TAVT system and are therefore subject to annual ad valorem tax. Vehicles being brought from out of state are also subject to TAVT. Vehicle sales or use taxes paid to other states are not credited towards TAVT in Georgia.


title: Sales taxes in the United States

text: Georgia has many exemptions available to specific businesses and industries, and charities and other nonprofits such as churches are exempt. To identify potential exemptions, businesses and consumers must research the laws and rules for sales and use tax and review current exemption forms.


title: Sales taxes in the United States

text: Guam has no general sales tax imposed on the consumer with the exception of admissions, use, and hotel occupancy taxes; however, businesses must pay 5% tax on their monthly gross income. There are no separate municipal, county, school district or improvement district taxes.


title: Sales taxes in the United States

text: Use tax is 5% on non-exempt personal property imported to Guam. Hotel tax is 11% of daily room rate. Alcoholic beverage tax varies depending on the beverage. Additionally there are tobacco taxes, real property taxes, amusement taxes, recreational facility taxes, and liquid fuel taxes.


title: Sales taxes in the United States

text: That Business Privilege Tax rate increased from 4% to 5% effective June 1, 2018. It was originally expected to be changed back to 4% on October 1, 2018, when Guam anticipated enacting a 2% sales and use tax. That bill was repealed, and the expiration of the reduced Business Privilege Tax rate was repealed, leaving the 5% rate in effect.


title: Sales taxes in the United States

text: Hawaii does not have a sales tax "per se", but it does have a gross receipts tax (called the General Excise Tax) and a Use Tax which apply to nearly every conceivable type of transaction (including services), and is technically charged to the business rather than the consumer. Hawaii law allows businesses to pass on the tax to the consumer in similar fashion to a sales tax.


title: Sales taxes in the United States

text: Unlike other states, rent, medical services and perishable foods are subject to the excise tax. Also, unlike other states, businesses are not required to show the tax separately on the receipt, as it is technically part of the selling price. Most retail businesses in Hawaii, however, do list the tax as a separate line item. 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. However, the state also allows "tax on tax" to be charged, which effectively means a customer can be billed as much as 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. As with sales tax in other states, nonprofit organizations may apply for an exemption from the tax.


title: Sales taxes in the United States

text: Hawaii also imposes a "use tax" on businesses that provide services that are "LANDED" In Hawaii. One example is: A property owner in Hawaii contracts with a mainland architect to design their Hawaii home. Even though the architect perhaps does all of their work in a mainland location, the architect needs to pay the State of Hawaii a 4% use tax on the architect's fee because the designed house is located in Hawaii (even if the house is never built). The tax is on the produced product which is the design and provided building plans. This applies to commercial property designs as well.


title: Sales taxes in the United States

text: Idaho initiated a sales tax of 3.0% in 1965 and the current rate is 6.0%. Some localities levy an additional local sales tax.


title: Sales taxes in the United States

text: 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 9.00% as of May 2013.


title: Sales taxes in the United States

text: Springfield charges 8.00% 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.


title: Sales taxes in the United States

text: 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.


title: Sales taxes in the United States

text: Qualifying food, drugs, medicines and medical appliances 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.


title: Sales taxes in the United States

text: Feminine care products, such as tampons and pads, are not subject to sales tax. Illinois is one of only three states with such an exemption (the others being Connecticut and New York).


title: Sales taxes in the United States

text: The city of Chicago has one of the highest total sales tax of all major U.S. cities (10.25%). It was previously this high (10.25%), however, it was reduced when Cook County lowered its sales tax by 0.5% in July 2010, another 0.25% in January 2012, and another 0.25% in January 2013. Chicago charges a 2.25% food tax on regular groceries and drug purchases, and has an additional 3% soft drink tax (totaling 13.25%). An additional 1% is charged for prepared food and beverage purchases in the Loop and nearby neighborhoods (the area roughly bordered by Diversey Parkway, Ashland Avenue, the Stevenson Expressway, and Lake Michigan).


title: Sales taxes in the United States

text: Illinois requires residents who make purchases online or when traveling out-of-state to report those purchases on their state income tax form and pay use tax. In 2014, Illinois passed legislation which required sales tax to be collected by "catalog, mail-order and similar retailers along with online sellers... if they have sales of $10,000 or more in the prior year." Although the law went into effect January 1, 2015, retailers were given an additional month to comply with the legislation.


title: Sales taxes in the United States

text: 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. Previous to this it was 5 percent from 1983 to 2002. It was 6 percent from 2002 to 2008. The rate currently stands at 7 percent. 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.


title: Sales taxes in the United States

text: 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, the sales tax for restaurants is 9%. There is an additional 2% tax on restaurant sales in Marion County to pay for Lucas Oil Stadium and expansion of the Indiana Convention Center.


title: Sales taxes in the United States

text: Iowa has a 6% state sales tax and an optional local sales tax of 1% imposed by most cities and unincorporated portions of most counties, bringing the total up to a maximum of 7%. There is no tax on most unprepared food, except candy and soda. The Iowa Department of Revenue provides information about local option sales taxes, including sales tax rate lookup. Iowa also has sales tax on services when rendered, furnished, or performed.


title: Sales taxes in the United States

text: Kansas has a 6.5% statewide sales tax rate that began on 1 July 2015. More than 900 jurisdictions within the state (cities, counties, and special districts) may impose additional taxes. For example, in the capital city of Topeka, retailers must collect 6.5% for the state, 1.15% for Shawnee County, and 1.5% for the city, for a total rate of 9.15%.


title: Sales taxes in the United States

text: To date, the highest combined rate of sales tax is 11.6%, at a Holiday Inn Express in Ottawa. Additionally, if a consumer in Kansas does not pay any sales tax at time of purchase, they must declare the unpaid tax on their yearly income tax.


title: Sales taxes in the United States

text: 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.


title: Sales taxes in the United States

text: Louisiana has a 4.45% state sales tax as of 1 July 2018. The state sales tax is not charged on unprepared food. There are also taxes on the parish (county) level and some on the city levels, Baton Rouge has a 5% sales tax. Parishes may add local taxes up to 5%, while local jurisdictions within parishes may add more. In Allen Parish, the combined sales tax is up to 9.45% (0.7% for Parish Council, 3% for School Board, 1% to 1.3% for City/Town). New Orleans (coterminous with Orleans Parish) collects the maximum 5% tax rate for a total of 9.45% on general purpose items. For food and drugs the tax rate is 4.5%, for a total of 8.95%. Louisiana bids out sales tax audits to private companies, with many being paid on a percentage collected basis.


title: Sales taxes in the United States

text: Maine has a 5.5% general, service provider and use tax (raised, temporarily until further notice, from 5% on October 1, 2013). The tax on lodging and prepared food is 8% and short term auto rental is 10%. These are all officially known as "sales tax".


title: Sales taxes in the United States

text: Maryland has a 6% state sales and use tax (raised from 5% in 2007) as of January 3, 2008, with exceptions for medicine, residential energy, and most non-prepared foods (with the major exceptions of alcoholic beverages, candy, soda, single-serving ice cream packages, ice, bottled water [including both still and carbonated water], and sports drinks). While most goods are taxed, many services (e.g., repair, haircuts, accounting) are not. Maryland's sales tax includes Internet purchases and other mail items such as magazine subscriptions. Maryland has a "back-to-school" tax holiday on a limited number of consumer items. On July 1, 2011, the selective sales tax on alcohol was raised from 6% to 9%.


title: Sales taxes in the United States

text: On January 1, 2012, Montgomery County began levying a 5-cent-per-bag tax on plastic and paper bags provided by retailers at the point of sale, pickup, or delivery (with few exceptions, most notably bags for loose produce in grocery stores, bags for prescription drugs, and paper bags at fast-food restaurants). Four cents of this tax goes to the county's water quality fund, and one cent is returned to the retailer.


title: Sales taxes in the United States

text: Massachusetts has a 6.25% state sales tax on most goods (raised from 5% in 2009). There is no sales tax on food items, but prepared meals purchased in a restaurant are subject to a meal tax of 6.25% (in some towns voters chose to add a local 0.75% tax, raising the meal tax to 7%, with that incremental revenue coming back to the town). Sales tax on liquor was repealed in a 2010 referendum vote.


title: Sales taxes in the United States

text: Sales of individual items of clothing costing $175 or less are generally exempt; on individual items costing more than $175, sales tax is due only on the amount over $175. There have been attempts by initiative petition referendum voting in Massachusetts state elections to alter the level of sales taxation overall within Massachusetts, or on certain classes of sold items: examples include the aforementioned end of taxation on alcoholic beverages that was up for voting in the 2010 state general election, and the separate overall reduction to a 3% sales tax on most in-state sales that same year.


title: Sales taxes in the United States

text: Michigan has a 6% sales tax. Michigan has a use tax of 6%, which is applied to items bought outside Michigan and brought in, to the extent that sales taxes were not paid in the state of purchase. Residents are supposed to declare and pay this tax when filing the annual income tax. Groceries, periodicals, and prescription drugs are not taxed, but restaurant meals and other "prepared food" is taxed at the full rate. The tax applies to the total amount of online orders, including shipping charges.


title: Sales taxes in the United States

text: Michigan raised the sales tax rate to 6% from 4% in 1994. Michigan Ballot Proposal 2015-1, which was opposed by 80% of voters, would have raised the sales and use taxes to 7%. In 2007, Michigan passed a law extending the sales tax to services, but repealed it the day it was to go into effect.


title: Sales taxes in the United States

text: 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 0.375% tax going to arts and environmental projects. The 0.375% tax was passed by a statewide referendum on Nov. 4, 2008, and went into effect on July 1, 2009. Generally, food (not including prepared food, some beverages such as pop, and other items such as candy), prescription drugs & clothing are exempt from the sales tax.


title: Sales taxes in the United States

text: 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, and 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: Minneapolis, Saint Paul, Rochester (all 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.


title: Sales taxes in the United States

text: Mankato has a 0.5% sales tax since 1991. Motorized vehicles are exempt from this tax. Effective April 1, 2016 Blue Earth County began imposing a 0.5% sales tax for transportation needs throughout the county.


title: Sales taxes in the United States

text: Starting on October 1, 2019, the following cities will be imposing a city sales tax: Elk River 0.5%, Excelsior 0.5%, Rogers 0.25%. Starting on January 1, 2020 West Saint Paul will impose a 0.5% sales tax.


title: Sales taxes in the United States

text: 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%).


title: Sales taxes in the United States

text: 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. This totals 10.375% in Duluth, 10.275% in Minneapolis, 10.125% in Saint Paul, and 9.875% in Rochester.


title: Sales taxes in the United States

text: 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%, like the city of Hattiesburg, for example.


title: Sales taxes in the United States

text: Missouri imposes a sales tax upon all sales of tangible personal property, as well as some "taxable services"; it also charges a use tax for the "privilege of storing, using or consuming within this state any article of tangible personal property." The state rate, including conservation and other taxes, is 4.225%, and counties, municipalities, and other political subdivisions charge their own taxes. Those additional local taxes combined with "community improvement district," "transportation development district," and "museum district" taxes can result in merchandise sales taxes in excess of 10%. The state sales tax rate on certain foods is 1.225%.


title: Sales taxes in the United States

text: Missouri provides several exemptions from sales tax, such as purchases by charitable organizations or some common carriers (as opposed to "contract carriers"). Missouri also excludes some purchases from taxation on the grounds that such sales are not sales at retail; these include sales to political subdivisions. The Supreme Court of Missouri in August, 2009, ruled 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. This decision was reversed by two similar – but not identical – statutes added during the 2010 general assembly's regular session.


title: Sales taxes in the United States

text: 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 them. 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. There are two exceptions to the general rule that the seller must pay the sales tax when he or she fails to collect it.


title: Sales taxes in the United States

text: 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 purchase 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.


title: Sales taxes in the United States

text: Montana has no state sales tax but some municipalities which are big tourist destinations, such as Whitefish, Red Lodge, Big Sky, and West Yellowstone, do (up to 3%). Hotels, campgrounds and similar lodging charge a "lodging and usage tax", usually at the rate of 7%. Rental car companies charge a 4% tax on the base rental rate.


title: Sales taxes in the United States

text: Nebraska has a 5.5% state sales tax from which groceries are exempt. 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. Omaha also has a 2.5% tax on prepared food and drink.


title: Sales taxes in the United States

text: Nevada's state sales tax rate is 6.85%. 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% to 8.375% in Clark County. Clark County, which includes Las Vegas, has an additional rate of 1.525% – 0.5% for mass transit, 0.25% each for flood control and to fund the Southern Nevada Water Authority, 0.4% for the addition of police officers in the county, and 0.125% for educational programs. In Washoe County (which includes Reno), the total sales tax rate is 8.265%, 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.


title: Sales taxes in the United States

text: For travelers to Las Vegas, note that the lodging tax rate in unincorporated Clark County, which includes the Las Vegas Strip, ranges between 10.5% and 13.38%, depending on the distance of the hotel from the Las Vegas Convention Center and the proximity of the hotel to the Strip and Allegiant Stadium, the home stadium for the Las Vegas Raiders. In Las Vegas, the room tax rate is 13.38% for certain hotels near the Strip and 13% for all other hotels; however, in the city of Henderson, all rooms are taxed at a rate of 13%, regardless of location.


title: Sales taxes in the United States

text: No statewide sales tax exists in New Hampshire. However, a 1.5% transfer tax is levied on real estate sales. Taxable meals exclude food and beverages for consumption off premises, but catered and restaurant meals are taxable at the 9% rate.


title: Sales taxes in the United States

text: New Hampshire also imposes excise taxes on gasoline at $0.196 per gallon, cigarettes at $1.78 per pack, and beer at $0.30 per gallon. A tax on the consumption of electricity, at $0.00055 per kilowatt-hour, was repealed starting in 2019.


title: Sales taxes in the United States

text: The state of New Jersey's sales and use tax rate is 6.625% effective January 1, 2018. Certain items are exempt from tax, notably most clothing, footwear, and food. However, there are exceptions to this statewide rate. In Urban Enterprise Zones, UEZ-impacted business districts, and Salem County, sales tax is collected at 50% of the regular rate (currently 3.3125%) on certain items. In addition, local sales taxes are imposed on sales of certain items sold in Atlantic City and parts of Cape May County. The highest sales tax in the state is in Atlantic City at 12.625% (although certain items are exempt from the additional tax).


title: Sales taxes in the United States

text: 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.


title: Sales taxes in the United States

text: New Jersey does not charge sales tax on gas, however, that is subject to a $0.375/gallon excise tax. Cigarettes are subject to a $2.70/pack excise tax, in addition to sales tax.


title: Sales taxes in the United States

text: New Mexico imposes a gross receipts tax of 5% on most retail sales or leasing of property or performance of services in New Mexico. The tax is imposed on the seller but it is common for the seller to pass the tax on to the purchaser. The state rate is 5.125%. Municipalities may assess an additional gross receipts tax, resulting in rates between 5.375% and 8.8625%. Numerous specific exemptions and deductions apply. The tax may possibly increase depending on the state growth.


title: Sales taxes in the United States

text: The state sales tax rate in New York is 4%. All counties, by default, are authorized to collect an additional 3% sales tax on top of the state's 4% levy; under the state's home rule laws, counties and other local municipalities may only levy a higher sales tax (or a lower one, but this option is not exercised) if it is approved by the New York State Legislature, and this approval must be repeated every two years. As of 2017, all but Saratoga, Warren, Washington and Westchester counties in New York charge a higher sales tax rate than the 3% default rate. The combined sales tax in Utica, for example, is 8.75%. In New York City, total sales tax is 8.875%, which includes 0.375% charged in the Metropolitan Commuter Transportation District (MCTD).


title: Sales taxes in the United States

text: On September 1, 2007, New York State eliminated the 4% state sales tax on all clothing and footwear if the single item is priced under $110. Most counties and cities have not eliminated their local sales taxes on clothing and footwear. There are however, 5 cities (most notably New York City) and 9 counties (not including the five counties which make up New York City: New York, Queens, Kings, Richmond, and Bronx counties) that have done so.


title: Sales taxes in the United States

text: Counties which have eliminated their local sales tax on clothing and footwear if the single item is priced under $110 are: Chautauqua, Chenango (outside the city of Norwich), Columbia, Delaware, Greene, Hamilton, Madison (outside the city of Oneida), Tioga, and Wayne. The Cities of Binghamton, Gloversville, New York City, Olean, and Sherrill do not collect a local sales tax. New York State also exempts college textbooks from sales tax.


title: Sales taxes in the United States

text: Since 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.


title: Sales taxes in the United States

text: From October 1, 2010, to March 31, 2011, statewide sales and use tax exemption for clothing and footwear sold for less than $110 was eliminated. For New York City, this meant articles of clothing costing less than $110 were charged 4.375% tax. A state sales tax exemption for clothing and footwear under $55 was reinstated from April 1, 2011, through March 31, 2012. The original ($110) exemption was reinstated after March 31, 2012.


title: Sales taxes in the United States

text: North Carolina has a state-levied sales tax of 4.75%, effective July 1, 2011, with most counties adding a 2% tax, for a total tax of 6.75% in 72 of the 100 counties. Mecklenburg and Wake counties levy an additional 0.5% tax, which is directed towards funding the light rail system, for a total of 7.25% and the total sales tax in 25 other counties is 7%. Durham County and Orange County impose an additional 0.5% tax onto the 7% rate for funding public transportation, making the total rate 7.5%. The Wake County Board of Commissioners levied a Prepared Food and Beverage Tax of 1% of the sale price of prepared food and beverages effective January 1, 1993, bringing the total to 7.75%.


title: Sales taxes in the United States

text: There is a 34.0¢ tax per gallon on gas, a 45¢ 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 uniform county tax rate of 2%. Alcohol and certain other goods are taxed at a "combined rate" of 7%, which includes both state tax and a 2.25% county tax. Candy, soft drinks, and prepared foods are taxed at the full combined 6.75-7.5% rate, with some counties levying an additional 1% tax on prepared foods. A sales tax holiday on the first Friday in August through the following Sunday, which included school supplies, school instructional materials, clothing, footwear, sports and recreation equipment, and computers and computer accessories, was repealed in 2014 after being in force since 2002.


title: Sales taxes in the United States

text: North Dakota has a 5% state sales tax for general sales, but varies depending on the category (5%, 7%, 3% and 2%). Local taxes increase the total rates to 7.5% in Fargo, Valley City and Pembina; 7.25% in Grafton; 7.5% in Minot; 6.75% in Grand Forks; 6.5% in West Fargo, Dickinson, and Williston; and 6.0% in Bismarck and Mandan.


title: Sales taxes in the United States

text: Ohio has a 5.75% state sales tax. Counties may levy a permissive sales tax of 0.25% up to 1.5% and transit authorities, mass transit districts usually centered on one primary county, may levy a sales tax of 0.25% up to 1.5%. Cuyahoga County has the highest statewide sales tax rate (8%). Tax increments may not be less than 0.25%, and the total tax rate, including the state rate, may not exceed 8.75%. 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.


title: Sales taxes in the United States

text: Shipping and handling charges are also taxable. Ohio law requires virtually every type of business to obtain an Ohio Sales Tax Certificate Number. If someone sells goods on eBay or the internet and ships them to someone in the state they reside, then they must collect sales tax from the buyer and pay the collected tax to the state on a monthly or quarterly basis. If someone sells less than $4 million in annual sales, they do not have to collect or pay sales tax on out-of-state sales.


title: Sales taxes in the United States

text: Ohio Sales Tax Resale Certificate Example: If living in Ohio and selling or shipping something to someone else in Ohio, then one must collect and pay sales tax to the State of Ohio. But if selling the same item to someone outside the State of Ohio, one 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 at the full rate.


title: Sales taxes in the United States

text: Oklahoma has a 4.5% sales tax rate. Counties and cities each have an additional sales tax which varies, but is generally up to 2% for counties and 2-5% for cities resulting in a total sales tax rate of 7.5% to 8.5%.


title: Sales taxes in the United States

text: Oregon has no statewide sales tax, although local municipalities may impose sales taxes, such as the 5% prepared food tax in Ashland.


title: Sales taxes in the United States

text: Oregon does collect some business and excise taxes that may be passed along to (or must be collected from) consumers in some form or another. These include a 1% state lodging tax, various tobacco taxes, telecommunications taxes, and ″privilege tax″ (excise tax) on beer, wine, spirits and new vehicles. Many localities also collect additional lodging taxes.


title: Sales taxes in the United States

text: Pennsylvania has a 6% sales tax rate. Allegheny County has local sales tax of 1% on top of the PA sales tax rate that totals 7%. Philadelphia County has a local sales tax of 2% on top of the PA sales tax rate that totals 8%, which became effective October 8, 2009.


title: Sales taxes in the United States

text: Food, most clothing, and footwear are among the items most frequently exempted. 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.


title: Sales taxes in the United States

text: Additional exemptions include internet service, 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, ice, and tea (including powdered, hot, cold, and flavored).


title: Sales taxes in the United States

text: The taxability of alcoholic beverages is slightly complicated. In Pennsylvania, alcohol is sold to businesses and consumers through the Pennsylvania Liquor Control Board (PLCB). The PLCB always charges sales tax directly to the purchasing entity. Therefore, if a consumer purchases alcohol in PLCB stores, the sales tax is assessed at the point of purchase, but if a consumer purchases alcohol at a licensed business (such as a bar or restaurant), the sales tax is not applied because it had already been paid when the business purchased the alcohol from the PLCB. The PLCB charges an additional 18% levy on liquor and wine, but this tax is always included in the price regardless of the purchasing location. Beer is subject to an excise of $0.08 per gallon.


title: Sales taxes in the United States

text: Gasoline is taxed in Pennsylvania at 58.7 cents/gallon. Diesel is taxed at 75.2 cents/gallon. Both of these figures are the second highest in the nation to California.


title: Sales taxes in the United States

text: Puerto Rico has a 10.5% 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% for a total of 11.5%. Some items that are exempt from commonwealth sales tax, specifically unprocessed foods, are subject to the city sales tax in the municipalities.


title: Sales taxes in the United States

text: 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 (excluding single serve items), prescription drugs, clothing and footwear (except for individual items priced greater than $250), newspapers, coffins, and original artwork.


title: Sales taxes in the United States

text: South Carolina has a 6% state sales tax but when combined with local, county and hospitality taxes South Carolina has a maximum sales tax of 10.5%.


title: Sales taxes in the United States

text: In Charleston, the tax rate equals 10.5% with state tax, county tax, local option tax, and the hospitality tax. The City of Myrtle Beach states that mixed liquor drinks can have taxes added as high as 16.5%.


title: Sales taxes in the United States

text: As of June 1, 2007 counties and some cities may impose an additional 1% to 3% 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.


title: Sales taxes in the United States

text: 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.


title: Sales taxes in the United States

text: For the benefit of back-to-school shoppers, there is a sales tax holiday on the first Friday in August through the following Sunday which includes school supplies, school instructional materials, clothing, footwear, sports and recreation equipment, and computers and computer accessories.


title: Sales taxes in the United States

text: South Dakota has a 4.5% state sales tax, plus any additional local taxes. An additional 1.5% sales tax is added during the summer on sales in tourism-related businesses, dedicated to the state's office of tourism.


title: Sales taxes in the United States

text: City governments are allowed a maximum of 2% sales tax for use by the local government, especially in Sioux Falls in Minnehaha County. However, they can impose a gross receipts tax on things like lodging, alcohol, restaurants, and admissions. These gross receipts are passed on by the business and could be considered a sales tax.


title: Sales taxes in the United States

text: Tribal governments are allowed to charge a higher local government tax rate, by special agreement with the state.


title: Sales taxes in the United States

text: Counties also tax up to 2.75% in increments of 0.25%. In most places, the county rate is about 2.25%, making the total tax on sales about 9.25%. 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 of these charges a city tax.


title: Sales taxes in the United States

text: The uniform state tax rate used to be 6%. Effective 1 July 2002, the tax rate was raised to 7% except for groceries. The rate for groceries was lowered to 5.5% effective 1 January 2008, to 5% on 1 July 2013, and to 4% on 1 July 2017.


title: Sales taxes in the United States

text: The Texas state sales and use tax rate is 6.25% since 1990, 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%. Prepared food, such as restaurant food, is subject to the tax, but items such as medicines (prescription and over-the-counter), food, and food seeds, are not.


title: Sales taxes in the United States

text: 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).


title: Sales taxes in the United States

text: Lodging rates are subject to a 6% rate at the state level, with local entities being allowed to charge additional amounts. For example, the city of Austin levies a 9% hotel/motel tax, bringing the total to 15%, trailing only Houston for the highest total lodging tax statewide, at 17%. 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.


title: Sales taxes in the United States

text: If merchants file and pay their sales and use tax on time, they may subtract half of one 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.


title: Sales taxes in the United States

text: 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 talk of a tax free weekend in December to help with the Holiday shopping season.


title: Sales taxes in the United States

text: Utah has a base rate of sales tax of 5.95%, consisting of a state sales tax of 4.70% and uniform local taxes totaling 1.25%. Additionally, local taxing authorities can impose their own sales tax. Currently, the majority of Utah's aggregate sales taxes are in the range of 5.95 – 8.35%. Utah has a 16.350% sales tax on rental cars in Salt Lake City.


title: Sales taxes in the United States

text: The sales tax on food and food ingredients is 3.0% statewide. This includes the state rate of 1.75%, local option rate of 1.0% and county option rate of 0.25%.


title: Sales taxes in the United States

text: Vermont has a 6% general sales tax. Groceries, clothing, prescription and non-prescription drugs are exempt. Hotel and meeting room rentals are subject to a 9% rooms tax, and a 9% meals tax is charged on sales of prepared food and restaurant meals. Beer, wine, and liquor sold for immediate consumption are subject to a 10% alcoholic beverages tax.


title: Sales taxes in the United States

text: Cities and towns may collect an additional 1% local option tax, effectively establishing a 7% sales tax, a 10% rooms and meals tax, and an 11% alcoholic beverages tax. All local option taxes are charged in Brandon, Colchester, Dover, Killington, Manchester, Middlebury, Rutland Town, South Burlington, St. Albans Town, Stratton, Williston, Wilmington, and Winhall. The communities of Brattleboro, Montpelier, Stowe and Woodstock charge the local option rooms, meals, and alcoholic beverages taxes, but do not charge the local option sales tax. The cities of Burlington and Rutland do not charge the local option rooms or meals taxes. They are authorized by their respective charters to levy their own taxes on meals, lodging, and entertainment. Burlington does collect the local option sales tax.


title: Sales taxes in the United States

text: Motor vehicle sales are subject to a 6% purchase or use tax. Short term auto rentals are taxed at 9%. Gasoline is taxed at 20 cents per gallon, plus an amount equal to 2% of the average statewide retail price. A Motor Fuel Transportation Infrastructure Assessment fee is also added to the gas tax rate.


title: Sales taxes in the United States

text: Retail sales of spirituous liquors have been subject to the 6% general sales tax since July 1, 2009. Prices set by the Vermont Liquor Control Board include the state's 25% gross receipts tax on the sale of liquor and fortified wines, while beer and wine prices reflect the 55 cent per gallon excise tax paid by bottlers or wholesalers.


title: Sales taxes in the United States

text: Virginia has a sales tax rate of 5.30% (4.3% state tax and 1% local tax). An additional 0.7% state tax is applied in the Northern Virginia region (Cities of Alexandria, Fairfax, Falls Church, Manassas, and Manassas Park; and Counties of Arlington, Fairfax, Loudoun, and Prince William) and the Hampton Roads region (Cities of Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach, and Williamsburg; and Counties of Isle of Wight, James City, Southampton, and York), as well as Christiansburg, which currently has the highest meals tax in the United States at 12.8%. Consumers are taxed on every "eligible food item." For example, fresh local produce sold at farmers' markets and at grocery stores, as well as basic, unprepared cold grocery foods (including candy, bottled water, and soda), are taxed 2.5% (1.5% state tax and 1% local tax). Cities and counties may also charge an additional "Food and Beverage Tax" on restaurant meals and prepared food sold at grocery stores (including ice cream packages smaller than 16 ounces), up to an additional 4% in counties and 6.5% in cities. Virginia also has a tax on alcohol of 11.5%.


title: Sales taxes in the United States

text: Virginia's use tax also applies at the same rate for out of state purchases (food 2.5%, non-food 5.3% to 6%) exceeding $100 per year "from mail order catalogs". Various exemptions include prescription and non-prescription medicine, gasoline, and postage stamps, or the labor portion of vehicle repair. "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.


title: Sales taxes in the United States

text: 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.


title: Sales taxes in the United States

text: Washington has a 6.5% statewide sales tax. Local rates vary based on an individual's location at the point of purchase and can total up to 3.1% for a combined rate of 9.6%. In addition, due to the large number of Native American reservations located within the state, sales-tax rates, if any, can vary based on state treaties with each nation.


title: Sales taxes in the United States

text: Since 2 December 2010, sales taxes are exempt to unprepared food items and prescription medications. Prepared food, over-the-counter medications, and medical marijuana are subject to sales tax.


title: Sales taxes in the United States

text: The sale or lease of motor vehicles for use on the road incurs an additional 0.3% tax, rental of a car for less than 30 days has an additional state/local tax of 8.9%. When renting a car for less than 30 days in Seattle, the total sales tax is 18.6%. When buying an automobile, if one trades in a car, the state deducts 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 $10,000 car, a person would be taxed on the difference of $30,000 only, not the full amount of the new vehicle).


title: Sales taxes in the United States

text: Residents of Canada and U.S. states or possessions having a sales tax of under 3%, e.g., Oregon, Alaska, and 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.


title: Sales taxes in the United States

text: A seller of a house or real estate pays excise taxes on the full sale price. The amount varies by county. In King and Snohomish counties, it is up to 1.78%. For example, selling a house for $500,000 will incur a tax of $8,900.


title: Sales taxes in the United States

text: 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 is 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. 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.


title: Sales taxes in the United States

text: The lowest combined state, county, and municipality sales tax rate in Washington is 7% in most of Klickitat and Skamania counties, while the highest combined sales tax in Washington is the 10.4% in some parts of Snohomish County.


title: Sales taxes in the United States

text: The highest sales tax in Washington is on liquor. The spirits sales tax is 20.5% of the value of the product purchased and a $3.7708 per liter spirits liter tax is assessed on spirits sold to consumers.


title: Sales taxes in the United States

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


title: Sales taxes in the United States

text: On 1 July 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. 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.


title: Sales taxes in the United States

text: The city of Seattle charges a 10% tax on charges for parking garages to go toward mass transit. Total tax at parking garages is now 19.5%. This rate was set to go up to 12.5% on 1 January 2011, making the parking tax total 22%.


title: Sales taxes in the United States

text: 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 1 January 2009, but was pushed back until April 2009. (For the first quarter of 2009, the tax rate in Seattle was 9%.)


title: Sales taxes in the United States

text: Midterm elections that occurred on 2 November 2010, saw sweeping voter-enacted tax changes with the passage of Initiative 1107. The initiative repealed all taxes levied on candy, gum, snack foods, carbonated beverages, and bottled water that had been imposed by the state legislature on 1 June 2010. Initiative 1107 also lowered the B&O tax on food products that contain meat. The Department of Revenue stated that all tax rollbacks were to take effect on 2 December 2010, directing retailers to stop collecting the sales tax at that time. The language of the initiative did not order the state to refund any tax that had been previously collected.


title: Sales taxes in the United States

text: Since 1 April 2017, the sales tax in King, Pierce and Snohomish counties went up by 0.5 percent in order to fund the third phase of Sound Transit light rail expansion.


title: Sales taxes in the United States

text: West Virginia was the first US state to enact a sales tax, currently 6%. The sales tax on food was gradually phased out from January 2006 through July 2013. However, prepared food remains taxed at the full rate. 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.


title: Sales taxes in the United States

text: An individual who titles a motor vehicle with the West Virginia Division of Motor Vehicles must pay a $10 title fee and a 5 percent title privilege tax (rather than the 6% 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. Since 2007, new residents of West Virginia no longer have to pay the 5 percent title privilege tax when bringing their own vehicles into the state.


title: Sales taxes in the United States

text: Wisconsin has a 5% state sales tax, with all but 10 of 72 counties assessing their own 0.5% sales tax, mainly in order to finance county financing efforts, including county highway maintenance.


title: Sales taxes in the United States

text: The state instituted a 0.1% sales tax in five counties (Milwaukee, Ozaukee, Racine, Washington, Waukesha), effective 1 January 1996, to cover the cost of building American Family Field in Milwaukee. The tax was originally scheduled to be retired in 2014; however, it is now not expected to collect enough taxes to cover the entire cost until 2017. There had been talk of extending the tax to pay for the Fiserv Forum, the new home of the Milwaukee Bucks, but the plan failed to gain any momentum, and a property tax increase around the arena district funds that venue instead.


title: Sales taxes in the United States

text: Brown County collected a 0.5% tax for all purchases which funded the remaining cost of a $295 million renovation of Lambeau Field, as well as a payment to the Green Bay Packers to cover part of the cost of operating and maintaining the stadium through the year 2031. The tax ended as of 30 September 2015 but since 1 January 2018, a new 0.5% county sales tax is collected for county projects in the city of Green Bay.


title: Sales taxes in the United States

text: The municipalities of Lake Delton, Wisconsin Dells, Bayfield, Stockholm (passed by legislature in 2013), Eagle River, and Rhinelander (as of 2017) have also been authorized to adopt an additional "Premier Resort Area Tax", due to their status as popular tourist destinations. Lake Delton and Wisconsin Dells impose, as of 2014, a 1.25% sales tax (for a combined rate of 6.75%) while Bayfield, Stockholm, Eagle River, and Rhinelander (as of 2017) impose an additional 0.5% for a combined rate of 6.0%.


title: Sales taxes in the United States

text: Milwaukee County also has an additional local exposition tax on hotel rooms, car rentals, and food and beverage, which funds the Wisconsin Center Tax District.


title: Sales taxes in the United States

text: In all cases, prescriptions, most foods (with the exception of candy, dietary supplements, soft drinks, and prepared foods) and newspapers, among other items, are exempt from sales tax; however, over-the-counter medications, and certain types of repair and installation services are subject to the 5% sales tax rate.


title: Sales taxes in the United States

text: Wyoming has a 4% state sales tax, with counties adding up to an additional 3%, resulting in a maximum rate of 7%, especially in Cheyenne in Laramie County. In addition, resort district areas have the option to impose an additional 3% tax. Exemptions include food which is not designed to be consumed on-premises and sales of agricultural equipment. Unlike most states, in Wyoming labor falls under the jurisdiction of sales tax. All labor on both tangible and intangible property are taxable; however, labor which permanently modifies real property is exempt.


title: Sales taxes in the United States

text: Through the Internet's history, purchases made over the Internet within the United States have generally been exempt from sales tax, as courts have followed the Supreme Court ruling from "Quill Corp. v. North Dakota" (1992) that a state may only collect sales tax from a business selling products over the Internet if that entity has a physical location in the state. This decision was based on the Dormant Commerce Clause that prevents states from interfering in interstate commerce, unless granted that authority by Congress. Some retailers, like Amazon.com, had voluntarily started collecting sales tax on purchases even from states where they do not have a physical presence. Many states also have a line item on their tax returns allowing the payment of state sales tax when state income tax is filed by an individual or corporation.


title: Sales taxes in the United States

text: In May 2013, the Senate passed the Marketplace Fairness Act, which would allow states to collect sales taxes for purchases made online. The legislation would give States the tools to collect sales taxes on cross-State sales transactions. The bill received support from retailers including Walmart and Amazon.com, who have claimed that it is unfair not to require online merchants to collect sales taxes. Groups like the National Retail Federation and the Retail Industry Leaders Association have said that requiring online vendors to collect sales taxes will help make brick and mortar retailers more competitive. However, U.S. House Speaker John Boehner stated that it would be difficult to implement such a system due to varying tax codes in different states. The National Taxpayers Union (NTU) spoke out against the bill, along with The Heritage Foundation, which indicated that it would harm Internet commerce and small businesses. Online retailer eBay believes it will hurt some of its sellers and lobbied Congress to exempt businesses that have less than $10 million in out-of-state sales or fewer than 50 employees. The Act failed to pass in either the 112th or 113th Congress.


title: Sales taxes in the United States

text: In October 2017, the state of South Dakota petitioned the Supreme Court to abrogate the "Quill" decision, citing the ease that online retailers can now determine the location and appropriate sales tax for purchases compared to the state of the Internet in 1992. Several online retailers, including Wayfair, Overstock.com and Newegg, submitted petitions in opposition to South Dakota, stating that the impact will be difficult on small and medium-sized retailers that would not have ease of access to these tools. In January 2018, the Supreme Court agreed to hear the case "South Dakota v. Wayfair, Inc." in its 2018 term. Oral arguments were heard by the Supreme Court on April 17, 2018. During oral arguments South Dakota's attorney general, Marty Jackley, and the U.S. Solicitor General's representative, Malcolm L. Stewart, both posited that if the Court overturns the "Quill" decision that the ruling must be retroactive and not merely prospective. Several Justices were concerned about the burden that back taxes and ongoing sales and use tax compliance would place on small businesses.


title: Sales taxes in the United States

text: On 21 June 2018 the Supreme Court held that states may charge tax on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the taxing state. The court's 5–4 majority decision overturned "Quill", ruling that the physical presence rule decided from "Quill" was 'unsound and incorrect' in the current age of Internet services.


title: Sales taxes in the United States

text: There is no value added tax in the United States. There have been proposals to replace some Federal taxes with a value added tax.


title: Sales taxes in the United States

text: The use of sales taxes by U.S. states dates back at least to the Pennsylvania mercantile license tax that was initially introduced in 1821, though this and other early taxes were not broad-based. Buehler attributes development of modern state sales taxes to the depression era. He credits Kentucky with the first tax levied exclusively on retailers. The initial tax, passed in 1930, was progressive, but was replaced in 1934 with a 3 percent flat rate tax and then was eliminated in 1936. The current Kentucky sales tax was adopted in 1960. Commerce ClearingHouse credits Mississippi with the first sales tax, in 1930. Forty-five states and the District of Columbia currently impose sales taxes (see Table 1). Twenty-four of the states first levied the tax during the 1930s, six in the 1940s, five in the 1950s, and eleven in the 1960s. Vermont was the most recent state to impose a sales tax, in 1969. Alaska, Delaware, Montana, New Hampshire, and Oregon do not levy general sales taxes.


title: Ivan III of Russia

text: Ivan III Vasilyevich (; 22 January 1440 – 27 October 1505), also known as Ivan the Great, was a Grand Prince of Moscow and Grand Prince of all Rus'. Ivan served as the co-ruler and regent for his blind father Vasily II from the mid-1450s before he officially ascended the throne in 1462.


title: Ivan III of Russia

text: He multiplied the territory of his state through war and through the seizure of lands from his dynastic relatives, ended the dominance of the Tatars over Russia, renovated the Moscow Kremlin, introduced a new legal codex and laid the foundations of the Russian state. His 1480 victory over the Great Horde is cited as the restoration of Russian independence, 240 years after the fall of Kiev in the Mongol invasion of Kievan Rus'.


title: Ivan III of Russia

text: Ivan was the first Russian ruler to style himself "tsar", albeit not as an official title. Through marriage to Sofia Paleologue, he made the double-headed eagle Russia's coat of arms and adopted the idea of Moscow as Third Rome. His 43-year reign was the second longest in Russian history, after that of his grandson Ivan IV.


title: Ivan III of Russia

text: Ivan's rule is marked by vastly expanding the territory of Moscow. Ivan brought the independent duchies (kniažestva) of different Rurikid princes under the direct control of Moscow, leaving the princes and their posterity without royal titles or land inheritance. His first enterprise was a war with the Republic of Novgorod, with which Muscovy ("Moscow") as a Northern district of Golden Horde had fought a series of wars stretching back to at least the reign of Dmitry Donskoi. These wars were waged over Moscow's religious and political sovereignty, and over Moscow's efforts to seize land in the Northern Dvina region. Alarmed at the growing power of Moscow, Novgorod had negotiated with the Grand Duchy of Lithuania and Rus in the hope of placing itself under the protection of Casimir IV, King of Poland and Grand Prince of Lithuania, a would-be alliance that was proclaimed by the Moscow rulers as an act of apostasy from Orthodoxy (in part, because Poland and its monarchs were Catholic). Ivan took the field against Novgorod in 1470, and after his generals had twice defeated the forces of the republic – at the Battle of Shelon River and on the Northern Dvina, both in the summer of 1471 – the Novgorodians were forced to sue for peace, agreeing to abandon their overtures to Lithuania and to cede a considerable portion of their northern territories, while paying a war indemnity of 15,500 roubles.


title: Ivan III of Russia

text: Ivan visited Novgorod several times in the next several years, persecuting a number of pro-Lithuanian boyars and confiscating their lands. In 1477, two Novgorodian envoys, claiming to have been sent by the archbishops and the entire city, addressed Ivan in public audience as "Gosudar" (sovereign) instead of the usual "Gospodin" (sir). Ivan at once seized upon this as a recognition of his sovereignty, and when the Novgorodians repudiated the envoys (indeed, one was killed at the veche and several others of the pro-Moscow faction were killed with him) and swore openly in front of the Moscow ambassadors that they would turn to Lithuania again, he marched against them. Deserted by Casimir and surrounded on every side by the Moscow armies, which occupied the major monasteries around the city, Novgorod ultimately recognized Ivan's direct rule over the city and its vast hinterland in a document signed and sealed by Archbishop Feofil of Novgorod (1470–1480) on 15 January 1478.


title: Ivan III of Russia

text: Ivan dispossessed Novgorod of more than four-fifths of its land, keeping half for himself and giving the other half to his allies. Subsequent revolts (1479–1488) were punished by the removal en masse of the richest and most ancient families of Novgorod to Moscow, Vyatka, and other north-eastern Rus' cities. Archbishop Feofil was also removed to Moscow for plotting against the Grand Prince. The rival republic of Pskov owed the continuance of its own political existence to the readiness with which it assisted Ivan against its ancient enemy. The other principalities were eventually absorbed by conquest, purchase, or marriage contract: The Principality of Yaroslavl in 1463, Rostov in 1474, Tver in 1485, and Vyatka 1489.


title: Ivan III of Russia

text: Ivan's refusal to share his conquests with his brothers, and his subsequent interference with the internal politics of their inherited principalities, involved him in several wars with them, from which, though the princes were assisted by Lithuania, he emerged victorious. Finally, Ivan's new rule of government, formally set forth in his last will to the effect that the domains of all his kinsfolk, after their deaths, should pass directly to the reigning Grand Duke instead of reverting, as hitherto, to the princes' heirs, put an end once and for all to these semi-independent princelings.


title: Ivan III of Russia

text: Ivan had four brothers. The eldest, Yury, died childless on 12 September 1472. He only had a draft of a will that said nothing about his land. Ivan seized the land, much to the fury of the surviving brothers, whom he placated with some land. Boris and Andrei the Elder signed treaties with Vasily in February and September 1473. They agreed to protect each other's land and not to have secret dealings with foreign states; they broke this clause in 1480, fleeing to Lithuania. It is unknown whether Andrei the Younger signed a treaty. He died in 1481, leaving his lands to Ivan. In 1491 Andrei the Elder was arrested by Ivan for refusing to aid the Crimean Khanate against the Golden Horde. He died in prison in 1493, and Ivan seized his land. In 1494 Boris, the only brother able to pass his land to his sons, died. However, their land reverted to the Tsar upon their deaths in 1503 and 1515 respectively.


title: Ivan III of Russia

text: There was one semi-autonomous prince in Muscovy when Ivan acceded: Prince Mikhail Andreevich of Vereia, who had been awarded an Appanage by Vasily II. In 1478 he was pressured into giving Belozersk to Ivan, who got all of Mikhail's land on his death in 1486.


title: Ivan III of Russia

text: The character of the government of Moscow changed significantly under Ivan III, taking on a new autocratic form. This was a natural consequence of the hegemony of Moscow over the other Vladimir-Suzdal lands, but also to new imperial pretensions. After the fall of Constantinople, orthodox canonists were inclined to regard the Grand Princes of Moscow, where the Orthodox Metropolitan of Kiev moved in 1325 after the Mongol Invasions, as the successors of the Byzantine emperors. Ivan himself appeared to welcome the idea, and he began to style himself tsar in foreign correspondence. The British historian J. L. I. Fennell emphasizes Ivan's success in centralizing control over local rulers; he adds, however, that his reign was also "a period of cultural depression and spiritual barrenness. Freedom was stamped out within the Muscovite lands. By his anti-Catholicism Ivan brought down the curtain between Muscovy and the west. For the sake of territorial aggrandizement he deprived his country of the fruits of Western learning and civilization."


title: Ivan III of Russia

text: This movement coincided with a change in the family circumstances of Ivan III. After the death of his first consort, Maria of Tver (1467), and at the suggestion of Pope Paul II (1469), who hoped thereby to bind Muscovy to the Holy See, Ivan III wedded Sophia Palaiologina (also known under her original name Zoe), daughter of Thomas Palaeologus, despot of Morea, who claimed the throne of Constantinople as the brother of Constantine XI, the last Byzantine emperor. Frustrating the Pope's hopes of reuniting the two faiths, the princess endorsed Eastern Orthodoxy. Due to her family traditions, she encouraged imperial ideas in the mind of her consort. It was through her influence that the ceremonious etiquette of Constantinople (along with the imperial double-headed eagle and all that it implied) was adopted by the court of Moscow.


title: Ivan III of Russia

text: Ivan's son with Maria of Tver, Ivan the Young, died in 1490, leaving from his marriage with Helen of Moldavia an only child, Dmitry the Grandson. The latter was crowned as successor by his grandfather on 15 February 1498, but later Ivan reverted his decision in favor of Sophia's elder son Vasily, who was ultimately crowned co-regent with his father (14 April 1502). The decision was dictated by the crisis connected with the Sect of Skhariya the Jew, as well as by the imperial prestige of Sophia's descendants. Dmitry the Grandson was put into prison, where he died, unmarried and childless, in 1509, already under the rule of his uncle.


title: Ivan III of Russia

text: The Grand Duke increasingly held aloof from his boyars. The old patriarchal systems of government vanished. The boyars were no longer consulted on affairs of state. The sovereign became sacrosanct, while the boyars were reduced to dependency on the will of the sovereign. The boyars naturally resented this revolution and struggled against it.


title: Ivan III of Russia

text: It was in the reign of Ivan III that the new Muscovite Sudebnik, or law code, was compiled by the scribe, Vladimir Gusev. Ivan did his utmost to make his capital a worthy successor to Constantinople, and with that object invited many foreign masters and artificers to settle in Moscow. The most noted of these was the Italian Ridolfo di Fioravante, nicknamed "Aristotle" because of his extraordinary knowledge, who built several cathedrals and palaces in the Kremlin, and also supervised the construction of the Kremlin walls.


title: Ivan III of Russia

text: Muscovy rejected the Tatar yoke during the reign of Ivan III. In 1476, Ivan refused to pay the customary tribute to the grand Khan Ahmed, and in 1480 Ahmed Khan organized a military campaign against Muscovy. Throughout the autumn the Muscovy and Tatar hosts confronted each other on opposite sides of the Ugra River, till 11 November 1480 when Ahmed retreated into the steppe.


title: Ivan III of Russia

text: In the following year the Grand Khan, while preparing a second expedition against Moscow, was suddenly attacked, routed and slain by Khan Ibak of the Nogai Horde, whereupon the Golden Horde suddenly fell to pieces. In 1487 Ivan reduced the khanate of Kazan, one of the offshoots of the Horde, to the condition of a vassal state, though in his later years it broke away from his suzerainty. With the other Muslim powers, the Khan of the Crimean Khanate and the sultans of Ottoman Empire, Ivan's relations were peaceful and even amicable. The Crimean Khan, Meñli I Giray, helped him against the Grand Duchy of Lithuania and facilitated the opening of diplomatic relations between Moscow and Constantinople, where the first Muscovian embassy appeared in 1495.


title: Ivan III of Russia

text: The Christian rulers in the Caucasus began to see the Muscovite monarchs as their natural allies against the Muslim regional powers. The first attempt at forging an alliance was made by Alexander I, king of a small Georgian kingdom of Kakheti, who dispatched two embassies, in 1483 and 1491, to Moscow. However, as the Muscovites were still too far from the Caucasus, neither of these missions had any effect on the course of events in the region. In 1488, Ivan sought gun founders, master gunners for siege cannons, gold and silversmiths, and Italian master builders from King Matthias Corvinus.