June 1, 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.

Ohio estates to pay less taxes
COLUMBUS -- Ohio lawmakers closed out their session by approving legislation that would allow heirs to keep more of what's left by family members.

Currently, Ohio estate taxes, imposed on estates worth more than $25,000, range from 2 percent to 7 percent. The new bill would exempt estates of up to $200,000 from taxation in 2001 and those up to $338,000 starting in 2002.

Also beginning next year, beneficiaries who inherit family-owned businesses and farms appraised at as much as $675,000 will be able to deduct the property's value when computing estate taxes.

By the time the phase-in is complete, bill supporters say that 80 percent of Ohioans who would have faced death taxes under current law will be tax free upon receiving an inheritance. The legislature also established a committee to recommend ways to eliminate the estate tax entirely by 2006.

More investment money tax-exempt in Colorado
DENVER -- Colorado investors will get to keep a bit more of their income next year, thanks to an expanded tax exemption.

The new law allows single filers to exclude from state income tax up to $1,500 of interest, dividend and net capital gain earnings. The exemption is double for joint filers. The tax breaks will apply to money earned beginning Jan. 1, 2001.

Coloradans already are enjoying a temporary investment income tax break. On investment earnings this year, all filers will be able to subtract up to $1,200 before figuring their state tax bill.

Pennsylvania's PC users to get tax holidays
HARRISBURG -- Sales tax holidays are becoming commonplace across the country. But Pennsylvania lawmakers have put a digital twist on the concept.

For a week during August's back-to-school shopping peak and again just in time for February's President Day sales, the state won't collect its 6 percent sales tax on any computers bought for personal use. In addition, the 1 percent local sales fees in Philadelphia and Allegheny counties will be on hold during the PC weeks.

Tax-free equipment will include laptop and desktop computers, plus associated computer hardware and software purchased at the same time.

The first tax-free technology purchase week will be Aug. 6-13, followed by another chance to upgrade Feb. 18-25, 2001. State officials estimate they will lose about $8.3 million in sales tax because of the special program.