Tax Reduction (continued - p4 of 4)
Excise, Use and Toll Taxes
Excise and use taxes are imposed on many goods and services including tobacco, alcohol, fuel and petroleum products. Toll taxes are also sometimes charged for the use of roads, bridges and tunnels. Avoiding such taxes would generally require avoidance of purchasing such products or services, and the avoidance of using roads, bridges or tunnels that charge toll fees.Sales Taxes
Like excise and use taxes, the sales tax is levied on many goods, often by attaching the tax to retail prices. Sales taxes and rates vary from one state to another, although some states such as Alaska, Delaware, Montana, New Hampshire and Oregon do not have sales taxes. Avoiding the sales tax would require either the production of our own goods, or the avoidance of purchasing goods in states that levy sales taxes.Property Taxes
Properties which are not within federal jurisdiction, owned or otherwise controlled by governments, tax exempt charitable trusts or organizations are generally held liable for property taxes. The rate varies from one state to another, and the tax is typically levied by counties, cities, townships, school districts or other assessing jurisdictions. Nonetheless, there are ways to offset, reduce or even eliminate property taxes:
Properties within federal jurisdiction (such as federally patented and issued homesteads or mining claims) are generally not liable for property taxes.
Larger tracts of land (even if only a portion) can be used to grow timber. Although income taxes still apply to profits from future timber sales, forested lands may in many cases
be classified as tree farms, which can be exempt from property taxes.
Property (even if only a portion) can be donated to a tax exempt trust (such as a non-profit community land trust/CLT) or non-profit organization for conservation or
charitable purposes such as low-income housing or community gardens. Charitable donations are deductible from income taxes, gift taxes do not apply, and although real estate
market values are reduced, property taxes as well as potential future estate tax liabilities are likewise reduced.