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Home 2018 January 18 10 Strangest Ways States Tax You (And Don’t)

10 Strangest Ways States Tax You (And Don’t)

CALIFORNIA: TAXING THE STRONG STUFF

When it comes to taxation, the rule is generally the stronger the booze, the higher the tax (that’s why Kansas’s beer tax scheme is an anomaly). California follows that curve, but at 100 proof, you’d better be ready to pay through the nose.

Distilled spirits are taxed at $3.30 a gallon if below 100 proof, or 50% alcohol. Go over that, as with some “barrel proof” whiskeys or Cruzan 151 rum, and the tax doubles to $6.60. Maryland also notes the 100 proof point, but it only adds 1.5 cents per proof, per gallon, to the relatively modest liquor tax of $1.50 per gallon, taking the levy on the Cruzan to $2.27 per gallon.

 

HAWAII: ATONING FOR EXILE

While most states have programs that provide some property breaks for the disabled, Hawaii’s laws are notable for calling out a specific ailment: Hansen’s Disease, better known as leprosy.

Why? For decades—in fact, until 1969—the state had a policy that banished thousands of sufferers to an isolated area on the island of Molokai; a handful still live there by choice, in what is now a national park. The disease is now curable.

Hawaii has sought to make amends for the policy, exempting the first $50,000 of real property’s value from taxation for those with the disease, the same break as for residents who are blind, deaf or totally disabled. Compensation Hansen’s patients receive for their ailment is also exempt from state income tax.

Jan 18, 2018cleverfinance
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