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Additionally, three municipalities in Miami-Dade County (Bal Harbour, Miami Beach, and Surfside) are eligible to impose a municipal resort tax of up to 4%. [17] These taxes are separate from the county-wide tax. The rate in Bal Harbour and Surfside is 4%, while it is 7% in Miami Beach. [18]
Mississippi's income tax was held to apply to corporations in 1921; North Carolina, modernisation of existing individual and institution of corporate taxes, from 1921; South Carolina, individual and corporate, from 1921 or 1922; New Hampshire, "intangibles" (restricted to interest and dividends), from 1923;
Trusts are particularly popular in South Dakota because, in 1983, it revoked a law that prevented hereditary estates, allowing for the creation of trusts (serving to pass property onto one's children) that, while preventing the sale of the estate assets, also shield those assets from tax.
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In practice, a flat tax rate on income is used in many states of the USA, like Colorado, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, Pennsylvania, and Utah, or internationally, for example in many post-Soviet countries like Hungary, Serbia, Estonia or Ukraine, and also in Iceland or Bolivia. [5] [7]
The rate was fixed at 4.25% in 1956, changed to 5% in 1977, 4% in 2023, 3% in 2024, and the tax was repealed in 2025. [131] [132] This flat tax was in addition to the progressive rates imposed by the federal government of the United States. Tennessee introduced a flat tax on interest and dividends in 1929, at a rate of 5%. The rate was changed ...
Tax results depend on definitions of legal terms which are usually vague. For example, vagueness of the distinction between "business expenses" and "personal expenses" is of much concern for taxpayers and tax authorities. More generally, any term of tax law has a vague penumbra, and is a potential source of tax avoidance. [23]
§ South Carolina: 6% 9% Exempt 10.5% (higher) Exempt Taxed Taxed Exempt Exempt § South Dakota: 4% 6% Taxed Taxed Taxed Taxed Taxed Taxed Taxed § Tennessee: 7% 9.75% 4%+ (lower) Taxed Taxed Taxed Taxed Taxed Taxed § Texas: 6.25% 8.25% Exempt Taxed Exempt Exempt Taxed Taxed Exempt § Utah: 6.1% 8.35% 3% (lower) Taxed Exempt Taxed Taxed Taxed ...
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