State Tax

Lawmakers in Kansas, Nebraska, and Utah never voted to tax GILTI—and now their respective tax committees are getting a chance to decide whether they really should. Committee chairs in Nebraska and Utah are seeking a decisive “no” to their states’ respective taxation of international income, while Kansas lawmakers will consider the matter this coming Monday.

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Tennessee Governor Bill Lee’s 2020 budget proposal includes cutting in half what’s left of Tennessee’s privilege tax. Lee’s plan would continue the trend of Volunteer State leaders scrapping all forms of income taxation. This change would further simplify Tennessee’s tax code and make it more neutral and pro-growth. Tennessee’s privilege tax is a $400 tax

Earlier this week, a tax omnibus bill—Senate Bill 1398—advanced out of the Arizona Senate Finance Committee with a favorable recommendation. This bill includes many tax changes (paywall), but one particularly notable provision would conform Arizona’s corporate tax code to the 100 percent bonus depreciation allowance under Internal Revenue Code (IRC) § 168(k). Offering full expensing

Key Findings Individual income taxes are a major source of state government revenue, accounting for 37 percent of state tax collections in fiscal year (FY) 2017. Forty-three states levy individual income taxes. Forty-one tax wage and salary income, while two states—New Hampshire and Tennessee—exclusively tax dividend and interest income. Seven states levy no individual income

The following is our testimony to Kansas’ Senate Committee on Assessment and Taxation; and Kansas’ House Committee on Taxation Presenting: Kansas Tax Modernization: A Framework for Stable, Fair, Pro-growth Reform Table of Contents Introduction Thank you for inviting us to present today before your committee, and for the openness and hospitality we have experienced in

In December 2019, identical bills HB 861 and SB 1112 were introduced in Florida’s House of Representatives and Senate. The proposals would tax water extraction (excluding production from public water systems) at a rate of 12.5 cents per gallon. The revenue from the tax would be deposited in the Wastewater Treatment and Stormwater Management Revolving

Legislation before the D.C. Council would allow private parties to file tax actions—a concept that has a superficial appeal (the potential for greater tax compliance without greater governmental enforcement expenses) but falls apart under greater scrutiny. If enacted, B23-0035 could be a boon to certain law firms, but not to the District or to D.C.

In the wake of the 2018 South Dakota v. Wayfair case, states were quick to take advantage of their new authority to tax online sales. By the end of 2019, all states with sales taxes except Florida and Missouri had adopted remote sales regimes, whether by legislation or revenue department regulations. After its notable wait,

Massachusetts policymakers should reform the Commonwealth’s corporate excise tax to make it a simpler, more neutral revenue tool conducive to better economic growth. In our previous blog post, we looked at three provisions of the corporate excise tax that impact C corporations and recommended that Massachusetts adopt a consistent corporate apportionment formula, cap, or eliminate

Whenever anyone surfs the internet, they inevitably encounter online ads. They are everywhere, and they are big business. According to Forbes, the market was worth over $100 billion in the U.S. in 2018. With so much of our daily communication moving online, it has always been just a question of time before implications for the

Several of Massachusetts’ largest employers have created a coalition to seek a change to Massachusetts’ corporate income apportionment formula. The coalition wants Massachusetts to use “single sales factor” apportionment for all industries as an investment incentive to employers who have significant payroll and property located within the Commonwealth. In weighing this apportionment change, Massachusetts lawmakers

Commercial brewing of beer has been part of New York state since 1632, when Dutch settlers opened the first brewery in Manhattan. The brewing tradition continued through the centuries, peaking in 1876 with 393 breweries, before the Volstead Act prohibited production and sale of alcohol in 1920. Taxation of beer in New York can be

States compete with each other in a variety of ways, including attracting (and retaining) residents. Sustained periods of inbound migration lead to greater economic output and growth. Prolonged periods of net outbound migration, however, can strain state coffers, contributing to revenue volatility as economic activity and tax revenue follow individuals out of state. United Van

A pleasant surprise awaits Coloradans when they file their taxes this spring: a reduced tax rate of 4.5 percent (rather than the usual flat rate of 4.63 percent) will apply to income earned in 2019. This temporary income tax rate reduction, which will be enjoyed by individuals, pass-through businesses, and corporations alike, was triggered because

Next week brings one decade to a close and opens the next: the 2020s. The equivalent decade a hundred years prior saw the prohibition of alcohol and the birth of speakeasies. While it’s hard to say whether these new ’20s will be roaring with a comeback of bobbed haircuts, art deco, and the Charleston, two things

Last week, Virginia Governor Ralph Northam (D) presented his two-year budget for fiscal years 2021-2022. The budget includes, among other things, plans to increase excise taxes on gas, tobacco, and other nicotine products. If the budget passes, gas taxes would increase by 4 cents per gallon each year for the next three years, after which

Key Findings Thirty-four states have major tax changes taking effect on January 1, 2020. Arkansas, Tennessee, and Massachusetts will each see reductions in their individual income tax rates. Five states (Iowa, Kansas, Maine, North Carolina, and Ohio) will see notable changes to their individual income tax bases. Corporate income, capital stock, franchise, or similar taxes

Marketplace facilitators who cross the threshold of either processing more than $100,000 in sales or 200 transactions in 2019 will now be required to collect and remit Michigan sales and use tax effective January 1, 2020. Gov. Whitmer (D) signed this requirement into law in a group of four bills on Dec. 12. While not

Today’s map is the final in our series examining each of the five major components of the 2020 State Business Tax Climate Index. Compared to individual, corporate, sales, and property taxes, unemployment insurance (UI) taxes are less widely understood, but they have important implications for a state’s business climate. A state’s performance on the UI tax