Gross receipts do not include the following: taxes collected for and remitted to a taxing authority if included in gross or total income (such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees); proceeds from transactions between a concern and its domestic or …

What states have a B&O tax?

The business and occupation tax (often abbreviated as B&O tax or B/O tax) is a type of tax levied by the U.S. states of Washington, West Virginia, and, as of 2010, Ohio, and by municipal governments in West Virginia and Kentucky.

What is the difference between gross receipts tax and sales tax?

Unlike a sales tax, a gross receipts tax is assessed on businesses and apply to business-to-business transactions in addition to final consumer purchases, leading to tax pyramiding. A sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions.

How are gross receipts taxed in a state?

A gross receipts tax is levied on the total in-state sales of a business. Unlike with state income taxes, federal taxable income is irrelevant. Rather, gross receipts taxes are levied on all transactions at a relatively low rate. Often, no deductions are available to be applied against a taxpayer’s gross receipts to reduce the tax base.

How much do state and local governments raise from general sales taxes?

How much revenue do state and local governments raise from general sales taxes and gross receipts taxes? State and local governments collected a combined $411 billion in revenue from general sales taxes and gross receipts taxes, or 12 percent of general revenue, in 2018.

What is the gross receipts tax rate in the District of Columbia?

The District of Columbia also levies a gross receipts tax on some industries. Each state (except for Ohio) uses different tax rates for different industries, but nearly all the gross receipts tax rates are well below 1 percent (for example, Ohio’s single rate is 0.26 percent). How much do general sales tax rates differ across states?

Is there a gross receipts tax in Oregon?

You can learn more about Philadelphia’s gross receipts tax here. Portland (in Oregon) has a gross receipts tax on businesses over $1 billion in total sales with at least $500,000 annual retail receipts attributable to Portland. Certain Washington Cities. Some cities impose a B+O tax that is not collected by the state of Washington.