California considers taxing space travel – AOL Finance – AOL Small Business

Paying taxes on Earth is already a pain, but in California, you could one day be paying that extra fee in space. The state's franchise tax board wants the public to weigh in on the idea.

Its proposal would compute taxes on commercial space transportation companies. Basically, any company operating in California that makes half of their money from space transportation. They say it is any travel 62 miles above the surface of the Earth.

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How much Americans pay in taxes in every state

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Alabama residents pay less in property taxes than residents in any other state due to low median home values and the second-lowest property tax rate. Alabama residents have 23.66 percent of income going toward taxes, with a median household income of $44,509.

Beware health insurance in the state, though. A GOBankingRates study ranked Alabama among the worst states for health insurance costs.

Although the average income tax paid by Alaska residents is higher than the national average, it's largely due to the state's high median income of $75,112. Residents also only pay federal income taxes there is no state income tax. Residents of this oil-producing state pay the least in gas taxes in the nation, at 31 cents per gallon. That helps make Alaska one of the least expensive states to own a car.

Arizona falls in the bottom half of states for total taxes paid by its residents, who see 24.58 percent of their income, on average, go toward taxes. Property taxes and gas taxes paid in this state are lower than the national average.

However, the 8.25 percent sales tax is noticeably higher than the national average of 6.47 percent. Meanwhile, the state was ranked among the worst states to start a business by a GOBankingRates study.

Arkansas has one of the highest sales tax rates in the nation, at 9.3 percent. However, residents pay less in income taxes and gas taxes than the national average. Plus, the average property tax bill in Arkansas is among the lowest in the nation due to low median home values and a low tax rate.

California residents pay more in taxes than residents of most other states. In fact, 31 percent of their income, on average, goes toward taxes. Considering that the cost of living in California also is high, it's no wonder it's one of the states where residents are most likely to live paycheck to paycheck, according to one GOBankingRates study.

Colorado residents pay more in taxes than the national average of $14,998.83 and pay a higher percentage of their income toward taxes, on average. The reason: high income and sales taxes. Gas and property taxes paid in Colorado, on th other hand, are lower than the national average.

Connecticut residents pay more in income taxes than any other state, in part due to a high median income of $72,889. Average property taxes paid in the state also are about double the national average of $2,118.08. In addition to high taxes, residents also are faced with a high cost of living in Connecticut.

Delaware is one of the most tax-friendly states, with residents paying just 21.99 percent of their income toward taxes. One of the key reasons the total tax bill is low here is because there is no sales tax. Plus, the average property tax paid is nearly half the national average.

Washington, D.C., residents pay more in property taxes, on average, than residents in most states due to a high median home value of $540,400. Residents also pay more in income taxes, on average, than any other state, with the exception of Connecticut.

On the plus side, the sales tax rate of 5.75 percent is below the national average. Residents also pay less than the national average to fill up their gas tanks.

Florida is one of seven states with no income tax, so the average income taxes paid here reflect only federal taxes paid. Lower-than-average property taxes also help keep the total taxes paid as a percentage of income to just 21.9 percent in Florida.

The total taxes paid in Georgia are lower than the national average of $14,998.83. However, taxes actually consume a higher percentage of residents' income than the national average because of a low median income of $50,768 in the state.

Hawaii residents have to pay a hefty tax bill to live in paradise. Total taxes paid are among the top 10 highest in the nation due, in large part, to high income taxes. Residents earning a median household income of $64,514 pay around $14,798.36 in income taxes.

On the plus side, property and sales taxes in Hawaii are lower than the national average.

Total taxes paid in Idaho $14,012.17 are slightly below the national average. However, residents pay a higher percentage of their income toward taxes than the national average due to the state's low median income.

Hefty property and sales taxes contribute to a high total tax bill in Illinois. In fact, the average property tax bill is more than 50 percent higher than the national average even though the median home value is below the national average. Overall, Illinois residents pay nearly 30 percent of their income, on average, toward taxes.

Indiana is a relatively tax-friendly state. The average total tax bill is lower than the national average because income and property taxes are lower in Indiana than in most other states.

Total taxes paid in Iowa are higher than the national average because residents pay more in income and sales taxes. Total tax paid as a proportion of income also is higher in Iowa 27.55 percent versus 26.08 percent. However, a 2015 GOBankingRates study found that Iowa is one of the cheapest states for raising a family.

Average property taxes paid in Kansas are relatively low due to a less-than-stellar median home value. Average income taxes paid also are below the national average because of the state's low median wage. However, Kansas residents are hit by a high sales tax, which is 8.62 percent versus the national average 6.47 percent.

Kentucky has the fourth-lowest average tax burden in this study. All taxes paid income, sales, property and gas are well below the national average. Income and property taxes paid are particularly low, on average, due to the state's low median income and property value.

Average property taxes paid in Louisiana are among the lowest in the nation, as are income taxes due to the state's low median income of $45,922. Further, Louisiana has a higher-than-average sales tax of 9.98 percent.

Total taxes paid in Maine are lower than the national average. But that doesn't mean residents don't face high taxes. Total taxes paid consume nearly 27 percent of residents' pay, on average, due to the state's low median income.

Maryland residents pay more in taxes than residents in all but three states. This is largely due to the high income taxes paid in this state, which has the third-highest median income in the nation.

Not only is Massachusetts one of the most expensive states to raise a family, more than 30 percent of what residents earn goes toward income, property, sales and gas taxes. That's a higher rate than all but four states: California, Connecticut, New Jersey and New York.

Michigan's property tax rate is higher than the national average. However, a low median home value helps keep down the average property taxes paid in the state. Income and sales taxes paid also are lower than the national average.

On average, nearly 30 percent of what Minnesota residents earn goes toward income, property, sales and gas taxes. Average income taxes paid are particularly high, compared with other states.

Mississippi residents pay the lowest total tax bill in the nation. Income taxes paid here are the second lowest in the country due to the state's low median income of $40,037. Plus, property taxes paid are among the lowest in the nation as a result of a low tax rate and median home value.

The total tax bill in Missouri is only slightly higher than the national average of $14,998.83, due to income and sales taxes that are higher than the average paid nationwide. However, property and gas taxes in Missouri are well below the national average paid.

Montana is just one of four states with no sales tax. Property and income taxes also are lower than the national average. As a result, Montana residents see just 22.28 percent of their income, on average, go toward taxes.

The total tax bill in Nebraska is higher than the national average. In large part, it's because residents pay more in income taxes as a result of a higher-than-average median income. Nonetheless, residents pay, on average, an amount equal to about 28 percent of their income.

Nevada has no state income tax, which explains why the state's total tax bill is among the lowest in the nation. However, residents are hit with a 7.98 percent sales tax, which is among the highest in the nation. If you're looking to buy a home in Nevada, best sure to check out Reno. It is the best city to buy a house in Nevada.

New Hampshire has no sales tax. It also doesn't have a state income tax, but the average amount of federal income taxes paid by residents is high because the state has the highest median income in the nation. Residents also pay more in property taxes than the national average paid. In fact, New Hampshire has the second-highest property tax rate in the U.S., after New Jersey.

New Jersey residents pay the highest total tax bill in the nation. They also pay the highest percentage of income toward taxes 33.17 percent, on average. The biggest reason the tax burden is so high in New Jersey is the state's 2.13 percent property tax rate, which is more than twice as high as the national average rate.

Total taxes paid in New Mexico are among the lowest in the nation. Property and income taxes paid are well below the national average. This is due, in large part, to a low median income and a low median home value in the state.

Like their New Jersey neighbors, New York residents pay more than 30 percent of their income toward taxes. Residents pay a lot on the state's high sales tax of 8.49 percent and property tax of 1.38 percent.

The total tax bill in North Carolina is lower than the national average thanks to lower-than-average property and income taxes. However, residents pay more in gas taxes.

North Dakota residents have a lower total tax bill than the national average, paying around $13,381.61 every year. Gas and property taxes are lower than the national average, too.

Although the property tax rate in Ohio is higher than the national average, property taxes paid fall below the national average due to the state's low median home value of $125,300. Ohio residents also pay slightly less in income taxes overall, forking over just under $9,000 annually.

Oklahoma has one of the lowest total tax bills in the nation. Income and property taxes are well below the national average because median income and the median home value are among the lowest in the U.S. However, residents are hit by a high 8.86 percent state sales tax.

Oregon is just one of four states without a sales tax. Still, residents pay just over 28 percent of their income toward taxes. They face a high income tax bill.

At 77 cents per gallon, the gas tax in Pennsylvania is the highest in the nation. Property and income taxes in this state also are higher than the national average. If that wasn't bad enough, the state is also home to one of the worst cities in the U.S. for investment properties Pittsburgh.

Rhode Island residents pay over 29 percent of their income toward taxes. The big tax bite is due primarily to the state's high property tax rate of 1.51 percent. Income and sales taxes, on the other hand, are on par with the national average.

South Carolina's total tax bill is among the lowest in the nation. Residents pay below-average income, gas and property taxes. Its sales tax, however, is above average at 7.22 percent.

South Dakota has no income tax, which helps keep residents' total tax bill below the national average. Property and sales taxes paid also are slightly below the national average.

Tennessee has no state taxes on income, but it makes up for it with a high sales tax rate of 9.46 percent the second highest in this study. The average property taxes paid, on the other hand, are half the national average.

The total tax bill Texas residents pay is lower than the national average because residents don't pay state income tax. And they pay lower gas taxes than residents in most states. It's no surprise then that cities like Plano, Lubbock and Austin rank among the best cities to live in when you're saving money.

The overall tax bill in Utah is higher than the national average due to high income taxes paid by residents. However, the state does offer a high median household income of about $66,000. Meanwhile, the state's property tax rate is just 0.64 percent, compared to the national average of 1.02 percent.

Vermont residents pay more in property taxes than residents in most other states. As a result, total taxes paid in this state nearly top $18,000, far higher than the national average.

Virginia residents have a higher income tax bill than the national average, paying just over $12,600. But it's due, in part, to the state's median income, which is higher than the national average. Sales, gas and property taxes are all lower than national averages.

Washington has no income tax. However, residents are liable to pay a lot in income taxes thanks to the state's high median household income of $67,243. The state sales tax is also high, at 8.92 percent.

The total tax bill in West Virginia is the second lowest in the nation, after Mississippi. The typical property tax bill is also the second lowest in the nation, due to the state's low property tax rate of 0.53 percent and a low home value of $102,400.

Wisconsin residents pay a higher overall tax bill than the national average because of the state's high income and property taxes. In fact, Wisconsin is among the top 10 states that take the most out of your paycheck.

Residents of this tax-friendly state pay only about 20 percent of their income toward taxes the lowest percentage in the nation. Wyoming has no state income tax, and property and sales taxes in the state are well below national averages.

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Now, the reason the board created the rules is to let entrepreneurs know the state's tax code will be ready once business takes off. And, figuring out the amount of tax is actually pretty simple. The farther away from Earth you go means the less tax you pay. While the closer you are means more tax.

A public hearing on the rules is set for June 16th.

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California considers taxing space travel - AOL Finance - AOL Small Business