Unfortunately, fines and penalties a person owes to the government for violating local, state, and federal laws are never deductible.
You would not be able to deduct the state and local sales taxes because they were in fact imposed on the buyer- you had a duty to collect and pay over to the state government. Normally, sales tax is not deducted but it is also not included in income (essentially it nets itself out), Since you did not report the sales tax as income, you cannot deduct it separately.
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