Legal Definitions - Taxation - State statutes

Definition: Taxation refers to the process of collecting money from individuals and businesses by the government to fund public services and programs. State statutes are laws that govern taxation in each state.

• In California, the state sales tax rate is 7.25%.
• In New York, individuals who earn more than $1,077,550 per year are subject to a state income tax rate of 8.82%.
• In Texas, there is no state income tax, but there is a state sales tax rate of 6.25%.

These examples illustrate how different states have different tax rates and laws. The money collected from taxes is used to fund public services such as education, healthcare, and infrastructure.