State Income Tax and/or State Sales Tax?

How can states that don't have either an income tax or sales tax generate revenue/funds to provide services for its citizens? How do states find other ways to generate revenue/funds to provide services without an income tax or sales tax?

Public Comments

1. fees, fines, foes, fums, I smell the blood of a taxpayer. Fees and fines are how those states generate revenue/funds. Either that or they don't provide much in services. Or it could be Alaska, where they have so much money coming in from oil revenues, that they actually pay the residents of that state instead of taxing them. New Hampshire is a state without a sales tax and also does not have a state income tax either. It does have a tax on interest and dividends, and also a tax on businesses, including schedule C businesses however. And it has high property taxes.
2. There are no states that don't have at least one. Some choose sales tax some choose income tax, some choose both but no state has neither.
3. There are many other taxes. Property taxes manufacturing taxes are examples. Take a close look at the gas pump. You'll find a sticker that says how much and what kind of taxes are paid. Where I'm from, for each gallon of gasoline that I buy, I have paid 17 cents to the state!
4. In my experience, states that have no income tax have high sales tax. I don't know of any states that have no sales tax. There are a number of other ways to tax people to raise revenues. How about property taxes, including the tax you pay on your car each year and the fee to renew your license plate? There are ever rising assessments on your house which raises your taxes on your home. How about tolls on roads? Then there are luxury taxes, hotel taxes, eating out taxes. If you work in a county or city, you may pay extra payroll taxes for the privilege of working there. If your state has a lottery, that raises a lot of money. The city of Chicago is currently considering charging people a special fee for driving on city streets if they live outside the city limits - it's called a congestion fee. There is a long list of taxes that people pay directly or indirectly.
5. Besides income tax and sales tax, there are plenty of other taxes a state can levy (for example, property tax). There are also fines, fees, tickets, and so forth. States also earn revenue from selling the rights to its natural resources. Some states earn tons of money this way. Alaska earns quite a lot of money by selling the rights to drill its oil. In fact, it earns so much that it doesn't have either income tax nor sales tax. Even crazier is that the Alaskan government mails a check to all Alaskans each year representing their royalties on the sale of their oil (called the Alaska Permanent Fund). Last year's payment was $1,106.96 to each and every Alaskan. Crazy, isn't it? ~ States with no income tax on wages: Alaska Florida Nevada New Hampshire South Dakota Tennessee Texas Washington Wyoming States with no sales tax: Alaska Delaware Hawaii Montana New Hampshire Oregon
6. Every state has sales tax. States without income tax generally have very high property taxes for home owners. In resort areas (like Florida) the tourists pay a lot of the tax when they rent hotel rooms and visit attractions through surtaxes.
7. They all find their ways. Delaware has no sales tax. But it is the home to most of the large corporations in this country due to its pro-business tax laws that pay corporate taxes. It is also home to a lot of financial institutions due its laws on interest rates, and those banks pay banking taxes. It also has 3 slots parlors that contribute almost 10% of the state budget. New Hampshire has no state or income tax, although it does have a tax on interest and dividends. But it has a horrendous state property tax in addition to the property tax for towns and cities. Alaska has no state or income tax either. But it collects royalties from the oil companies who drill oil in Alaska. Florida has no income tax. But they have higher taxes on phones and gas. They also collect a lot of sales tax and hotel tax from visitors to its theme parks. And recently, most counties and municipalites have increased their property taxes.
8. When you said that I immediately thought of Las Vegas and subsequently Nevada. Nevada and Las Vegas itself have very minimal personal taxes on individuals because of how much money they make off of gambling. Some states, and some would argue all states, can afford to have no income or sales tax because they have huge revenue streams such as gambling and tourism. Not to mention lotto proceeds, local natural resource mining, other personal taxes such as licenses, etc.