Types

• Cities can administer several different types of taxes. Most cities charge a sales tax, which applies to all non-exempt goods and services sold within the city's borders. Sellers add city sales tax to state and other sales taxes to determine the total sales tax rate. Cities may also charge income tax for private individuals and businesses. Finally, cities charge property taxes to individuals who own residential, commercial and rental property.
  
  

Who Pays

• Only specific individuals who work, live or conduct business in a given city must pay taxes there. Sales tax applies to everyone who makes a purchase in the city, including residents and visitors. Anyone who owns property in a city is likely liable for property tax, even if the taxpayer lives outside of the city itself. Income tax policies vary by city. Some cities only charge residents, regardless of where they earn their incomes. Other cities apply one tax rate to residents and another to non-residents who work in the city but live elsewhere.
  
  

Administration

• Each city has its own system for administering taxes. Most cities have a department of finance, which may be the same office in charge of the city's budget. This office collects taxes and may propose new tax laws, which the city council or residents must vote to enact. When you move to a new city, the city's website is a useful resource to determine which taxes apply to you. In general, large cities impose more taxes while smaller cities may only impose a property tax, as many non-urban municipalities do, and a modest sales tax. State tax laws also apply within cities that have their own tax codes. State laws may limit what a city can charge in taxes of place city taxes on state income tax return forms to simplify the reporting and collection processes.
  
  

Help Paying

• If your city tax debt is difficult to pay, you have several options. Sales tax only applies to purchases you make, so cutting back on spending will reduce or eliminate the sales tax you pay. If your property taxes are high, or rise suddenly, you may be able to reduce the amount you owe by filing an appeal and asking for a reduction in your property's appraisal. The city will only grant your appeal if your property received an original appraisal that was too high, but pointing out overlooked details that make the property worth less can help make your case. Finally, if you can't afford your city's income taxes, contact the department of finance to file for an extension.