). By way of background. States impose taxes through statutes (referred to as im


). By way of background.
States impose taxes through statutes (referred to as imposition statutes). The amount of activity in or in connection with a state that a taxpayer must have before the taxpayer will be subject to the state’s taxes is defined by the state’s imposition statute, regulations, and case law and varies from state to state. Usually, a state’s imposition statute is written broadly and will make a taxpayer subject to state taxes if the taxpayer is an individual residing or domiciled in the state, is incorporated under state law, is “doing business” within the state, or is “earning or receiving income” from sources within the state.
Notwithstanding what a state’s imposition statute says, whether or not a state has the power to tax someone is limited by the state’s constitution, the U.S. Constitution, Public Law 86-272, and the Internet Tax Freedom Act. A state’s constitution may limit what types of taxes may be imposed, what types of property may be taxed, how property is valued, and what rates may be imposed.
Municipalities and other local governments may not be able to impose a tax unless explicitly authorized by state law.
The U.S. Constitution restrains the power of a state to impose taxes through various provisions:
•Commerce Clause
•Due Process Clause
•Equal Protection Clause
•Privileges and Immunities Clause
•Import-Export Clause
•Duty-of-Tonnage Prohibition.
•Supremacy Clause
•First Amendment
Assignment:
In a 2 to 3-page white paper briefly discuss each type of State and Local Tax. Include in your discussion any appointment issues inherent in each type of tax and the tax ramifications to the recipients of any proceeds


Leave a Reply

Your email address will not be published.