May 4, 2000 -- Because the federal income tax is the biggest and usually the first tax we see listed on our pay stubs, we naturally tend to focus on it.

But state government takes a bite out of our spending money, too. Bankrate will help you stay on top of what your localities are collecting -- income, sales, personal property or investment taxes, or often a combination of all.

Here's a look at some recent tax actions across the nation.

New Jersey tax rebate system improved this year
TRENTON -- New Jersey tax officials are staggering the mailing of property tax rebate forms to homeowners this year, hoping to circumvent previous filing problems.

Last year was the first of a five-year phase-in of the NJ SAVER -- School Assessment Valuation Exemption Relief -- program. The program provides direct property tax relief to homeowners via rebate checks. The check size is based on the amount of school taxes paid on a home's first $45,000 value. Rebates vary by municipality, but state tax officials say the average check will be $240.

Last year, all rebate forms were sent out at the same time, swamping the Treasury Department with applications and jamming phone lines with taxpayers seeking answers to questions. Filing deadlines were extended several times following the single mass mailing.

With this year's mailing system -- six shipments over two weeks -- the first group of New Jersey residents should get the rebate application forms any day now. All residents should have the forms by mid-May, say state officials, giving them plenty of time to file by the June 30 deadline.

Filing also should be easier, thanks to the almost 200 additional phone lines the New Jersey Division of Taxation is adding to handle taxpayer questions. And taxpayers who are seeking the rebate for the same house they lived in last year will not have to re-enter the same personal information.

Another option for rebate seekers: Homeowners with Internet access can file electronically. People also can call (609) 826-4282 from 8:30 a.m. to 4:30 p.m. Monday through Friday for more information.

Connecticut motorists, shoppers get tax breaks
HARTFORD -- With the legislative session ending, Connecticut lawmakers have agreed on a couple of tax breaks for state residents.

The key tax cut is a 7-cent-per-gallon reduction in the state's gasoline excise tax. This will make the state's tax on gas 25 cents per gallon, effective July 1. State officials estimate that the gas tax cut will save drivers about $92 million a year.

The assembly also agreed to eliminate the sales tax on clothing purchases of $75 or less. Previously, the exemption applied to goods totaling $50.

And the week of Aug. 14-18, back-to-school shoppers won't have to pay any sales tax on clothing priced up to $300.

Arizona business tax to finance employee training
PHOENIX -- Arizona employers will pay more taxes, but the money will pay for a permanent job-training program that lawmakers hope will benefit the state in the long run.

The new law imposes a tax of 0.1 percent on each worker's first $7,000 of salary. An estimated $15 million to $18 million is expected to go annually to programs to train new and existing employees. Arizona has had a job-training program for almost a decade, but funding came from legislative appropriations.

Collection of the tax will begin Jan. 1, 2001. The cost to businesses will be offset by a reduction in the state unemployment insurance tax paid by employers.