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Local Option Sales Tax Overview

Counties and cities can impose a tax on sales and services up to 1%. The revenues can be used for any local lawful purpose. To impose the tax, a countywide vote must be held. The tax only applies in the areas (categorized as incorporated or unincorporated) of the county where the tax was approved by a majority vote. Thus, a local option sales tax (LOST) may or may not be in effect across an entire county. 


The local sales tax is imposed on the same basis as the state sales tax or the state use tax. Specifically excluded from the tax are the sales of any property or services not taxed by the state, motor fuel, the sale of equipment by the state department of transportation, and natural gas and electricity where the local government has imposed a franchise or user fee for those services. Delivery location...