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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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