Taxes

							Taxes

PowerPoint Notes:
Part 3
Sales Tax

  This is the tax added onto the price of goods
   and services.
  Tennessee has a state sales tax.
  The state sales tax in Tennessee is 6% on
   food and food ingredients and 7% on nearly
   everything else.
  Prescription medicines are an example of an
   item that is not subject to the sales tax.
Sales Tax (Continued)

  Oak Ridge also charges a sales tax of 2.75%.
  This brings the total sales tax in Oak Ridge to
   8.75% on food and food ingredients and 9.75%
   on nearly everything else.
  Knoxville charges a sales tax of 2.25%.
  Knoxville’s sales tax is 8.25% on food and food
   ingredients and 9.25% on nearly everything
   else.
Sales Tax (Continued)

  Sales tax is an example of a regressive
   tax.
  This means that the tax has a greater
   impact upon lower income individuals
   than higher income individuals.
Excise Tax
  A federal and/or state tax imposed on the manufacture
   and distribution of certain consumer products.
  An example of this is the tax on gasoline.
  The state of Tennessee imposes a tax of 21.4 cents
   per gallon.
  The federal government imposes a tax of 18.4 cents
   per gallon (24.4 cents per gallon for diesel).
  There is a total tax of 39.8 cents per gallon of gas.
  This tax is built into the price per gallon of gasoline.
Property Tax

  This is the tax that an owner is required
   to pay on the assessed (appraised) value
   of their property (land, buildings, and
   homes).
  Registration fees on boats and vehicles
   are a type of tax on your personal
   property.
Property Tax (Continued)

  Property taxes are typically the biggest
   source of revenue for local governments.
  They are not imposed by states but by
   the tens of thousands of cities,
   townships, counties, school districts and
   other assessing jurisdictions throughout
   the United States.
Property Tax (Continued)
  The median property tax in Tennessee in 2008
   was $924.00.
  Property taxes differ in Oak Ridge based upon
   whether your home or business is located in
   Anderson County or Roane County.
  Oak Ridge (AC) $5.33 per $1000 in assessed
   value*
  Oak Ridge (RC) $4.92 per $1000 in assessed
   value*
  *This information was provided by Oak Ridge
   City Council Member Ellen Smith’s website.
Estate Taxes
  A tax levied on an individual's estate or valuables if
   they exceed a certain amount. That amount currently is
   $3,500,000.
  There is currently legislation to reduce this exemption
   amount to $1,000,000.
  This tax does not apply between spouses, who can
   leave any amount to one another upon death--a right
   known as the unlimited marital deduction. Therefore,
   the estate tax is mostly imposed on assets left to heirs.
  Property in excess of the exemption amount is taxed at
   a rate of 45%.
Gift Tax
  There is an annual limit on the amount of
   money that can be given to an individual as a
   gift.
  The current limit is $13,000 per recipient per
   year.
  Any gift in excess of this amount reduces the
   amount exempted from estate taxes.
  Monetary gifts to cover educational expenses
   or medical bills do not count toward the gift tax
   limit.