| All states also have their own tax system. Typically | | | | possessing items of personal property within the |
| there is a tax on real estate, and there may be | | | | boundaries of the state. Automobile and boat |
| additional income taxes, sales taxes, and excise | | | | registration fees are a subset of this tax; however, |
| taxes. Oil and mineral producing states often have a | | | | most people are unaware that practically all personal |
| severance tax, which is similar to an excise tax in | | | | property is also subject to personal property tax. |
| that tax is paid on products produced, rather than on | | | | Usually, household goods are exempt; but virtually all |
| sales. Taxes on hotel rooms are common, and | | | | objects of value (including art) are covered, especially |
| politically popular because the taxpayers usually do | | | | when regularly used or stored outside of the |
| not vote in the jurisdiction levying the tax. | | | | taxpayer's household. |
| These states do not levy an individual income tax: | | | | States permit the creation of special assessment |
| Alaska, Florida, Nevada, South Dakota, Texas, | | | | districts (typically for provision of water or removal |
| Washington, and Wyoming. New Hampshire and | | | | of sewage, or for parks, public transit or schools) |
| Tennessee only tax interest and dividend income. | | | | whose boundaries may be independent of other |
| Delaware, Oregon, Montana and New Hampshire have | | | | boundaries and whose income may be from one or |
| no state or local sales tax. Alaska has no state sales | | | | more of service assessments, property taxes, parcel |
| tax, but allows localities to collect their own sales | | | | taxes, a portion of road or bridge tolls, or an |
| taxes up to a state-specified maximum. California has | | | | additional increment upon sales taxes in addition to |
| all the mentioned taxes, with the result that tax | | | | the non-tax fees for services provided (such as |
| liability often exceeds 51% of income for many | | | | metered water). State government is financed mainly |
| California residents. | | | | by a mix of sales and/or income taxes and to a |
| Many states also levy personal property taxes, which | | | | lesser extent by corporate registration fees, certain |
| are annual taxes on the privilege of owning or | | | | excise taxes, and automobile license fees. |