East of Broken Bow | Dmpaul89 - 3/25/2024 11:56
When I write a check every month to pay sales tax for our business, where does that money go? I'm not looking for any wise guy comments about Illinois Politics, I just want to know if any of that tax the consumer pays trickles back to the town they purchased the product, or does it just all go to the state? our district just has the minimum 6.6% rate. Mayor made a comment about how our business didn't donate to the village to help pay for special events, which really ticked me off -it was my understanding that they get some of that sales tax revenue we generate during the events but maybe I am wrong. just want to get my facts right for the next board meeting!
It depends:
In Nebraska, we have a State sales tax, and cities have the option to add their own city sales tax.
The city tax stays within the city. The local towns that have a city sales tax have their own office that handles all the paperwork, and as far as I know, the money collected stays within the town.
Here is where it gets interesting. If I buy something in town, I pay the city sales tax. However, if I buy the same thing, from the same dealer, and conduct the transaction outside the city limits, I don't. If they deliver to the farm, and I write them a check when they deliver, no tax. If I go pick it up in town, same thing gets taxed. Turns out this was because someone wanted a grant from the tax money to expand their business just outside of town, and were told the city tax money only gets spent within the city limits. He challenged that, and the upshot was that the money only gets collected when spent within the city limits. |
Where does sales tax go?
