A new report by tax attorney experts at Delia Law revealed which states have the heaviest taxed services across the U.S..
Alcohol and motor fuels dominate the highest-taxed categories and some also came from amusement services. In states, the top areas where states earned their most tax revenue came from motor fuels to insurance premiums according to the study.
Florida, being the third largest state in the union, generates a lot if its revenue from motor fuels because of the large population and extensive highway network.
The report also shows the state bringing in a lot revenue from insurance premiums and public utilities
“The types of taxes states prioritize affect residents and businesses differently,” explains Dawn Delia, a tax attorney at Delia Law. “States that depend heavily on sales taxes may see higher costs for consumers, while those without income taxes often compensate with other revenue streams.”
Understanding the tax revenues in different states can help inform those who are thinking of moving to a different state or want to make informed financial and business decisions within their state.
Besides Florida, motor fuel taxes are the backbone of revenue for many states.
Insurance premiums cost have gone through the roof, yet the report shows it’s a steady source of income for states. “Insurance premium taxes are a reliable revenue source, especially for states with thriving financial sectors, and the premiums offer states a consistent tax base because most residents and businesses require some form of insurance,” notes the report.
In some of the bluer states run by Democrats, the report shows they derive a lot of their tax revenue from selective goods and services, such as tobacco, alcohol, and amusements, generate significant revenue in certain states.
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