The Finch Formerly Known As Gold

13 February 2008

Tax holidays in the sun

That business about your Federal tax rebate being not taxable by the state? You might want to adjust your perspective a tad. Stan Geiger explains:

[T]here is this thing called a sales tax. So if Oklahomans do that which they are asked to do with their checks (spend them), the state damn sure will tax the rebates. The state will tax them at a rate of 4.5 percent.

If a person spends his or her rebate money in Tulsa, the state will tax it, the county will tax it, and the city will tax it. In such a scenario, a federal rebate would be taxed at a rate of 8.517 percent. And that rate far exceeds even the top marginal state income tax rate.

Now I feel better about using mine for debt reduction.

Posted at 7:40 PM to Soonerland

Illinois taxes your previous years state refund as income. They technically wait a whole year to take their cut of your refund. Nice.

Posted by: Huts at 1:20 PM on 14 February 2008