Local Option Sales Tax

Local Option Sales Tax

In the United States, a Local Option Sales Tax (often abbreviated LOST) is a special-purpose tax implemented and levied at the city or county level. A local option sales tax is often used as a means of raising funds for specific local or area projects, such as improving area streets and roads, or refurbishing a community's downtown area.

LOSTs are always appended onto a state's base sales tax rate, most commonly at a rate of 1%. For example, in Iowa, the base sales tax rate is 5% statewide, or five cents per dollar. If a city or county in Iowa were to implement a local option sales tax, this would result in a 6% sales tax rate, or six cents per dollar. Since a LOST is implemented at city or county level, they apply only within the city or county in which it was implemented. Using the Iowa example, this means that any neighboring cities or counties would remain at 5% sales tax, unless they implement their own LOST.

A LOST most often (if not always) requires a passing vote by the general public before they can be implemented. Once implemented, a LOST is often levied for only temporary time periods, such as five years. As the expiration date approaches, another vote may be presented to the public, giving the options of either extending the LOST (for any other projects), or letting the LOST expire and discontinue.

Some states include multiple types of LOSTs depending on their intended purpose. For example, in Iowa, a standard LOST is used for city or county improvement purposes, whereas a SILO (School Infrastructure Local Option) tax is often used to build new schools, improve existing school buildings, or other educational purposes. Since a standard LOST and SILO are considered different types of taxes, regardless of them both being forms of local option sales taxes, it is possible for a city or county to implement both simultaneously (Using the Iowa example, this would yield a 7% sales tax within that city or county).



Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Special-purpose local-option sales tax — In the U.S. state of Georgia, a special purpose local option sales tax (SPLOST) can be levied by any county, for the purpose of funding the building and maintenance of parks, schools, roads, and other public facilities. Georgia s state sales tax… …   Wikipedia

  • School Infrastructure Local Option — The School Infrastructure Local Option (SILO) is a 1% local option sales tax adopted on a county by county basis in Iowa, United States. Though the tax is collected by county, state mandate says the total amount collected is to be pooled and… …   Wikipedia

  • Sales taxes in the United States — are a tax added onto the price of goods or services that are purchased in the United States. A sales tax is a tax on consumption, which is displayed as a percentage of the sale price. Sales taxes are assessed by every state except Alaska,… …   Wikipedia

  • Tax deduction — This article is about the deduction of expenses for the purpose of calculating taxable income. For tax deducted at source, see Withholding tax. Taxation An aspect of fiscal policy …   Wikipedia

  • Russian Tax Code — The Russian Tax Code is the primary tax law for the Russian Federation. The Code was created, adopted and implemented in three stages. Part One, enacted July 31, 1998, also referred to as General Part , regulates relationships between taxpayers,… …   Wikipedia

  • Value added tax — Taxation An aspect of fiscal policy …   Wikipedia

  • income tax — a tax levied on incomes, esp. an annual government tax on personal incomes. [1790 1800] * * * Levy imposed by public authority on the incomes of persons or corporations within its jurisdiction. In nations with an advanced system of private… …   Universalium

  • Real property use tax — The Real Property Use Tax (RPUT) is a tax system with assessment based on the size, level of development, and time in use of real property, and designed for general revenue acquisition. The tax system is a proposed replacement for the federal… …   Wikipedia

  • Goods and Services Tax (Hong Kong) — Goods and Services Tax (GST) was a proposed Value Added Tax in Hong Kong. Consultation over a period of nine months was launched on 2006 07 19 and stirred considerable controversy.It launched a fierce debate amongst local taxpayers, lawmakers,… …   Wikipedia

  • Estate tax in the United States — This article is about Estate tax in the United States. For other countries, see Inheritance tax. Part of a series on Taxation Taxation in the United States …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”