State Tax

Key Findings Following the 2018 South Dakota v. Wayfair S. Supreme Court decision eliminating the physical presence standard for sales tax nexus, 43 of 45 states with statewide sales taxes have adopted collection and remittance obligations for remote sellers, and 38 have implemented marketplace facilitator regimes. Safe harbors for small sellers help avoid imposing constitutionally

Today’s map shows states’ rankings on the property tax component of the 2020 State Business Tax Climate Index. The Index’s property tax component evaluates state and local taxes on real and personal property, net worth, and asset transfers. The property tax component accounts for 16.6 percent of each state’s overall Index score. Property taxes matter to businesses for several

Introduction Kansas achieved a history of tax reform success throughout the 19th and 20th centuries, as evidenced by the dramatic evolution of Kansas’ code over the state’s 158-year history. The result is the current tax code, constructed primarily upon a relatively balanced three-legged stool of property, sales, and income taxes. While the majority of Kansans

Today we continue our map series on the 2020 State Business Tax Climate Index with a map showing states’ rankings on the Index’s sales and excise tax component. A state’s sales tax rate and structure can make a state more or less attractive to businesses for two key reasons: (1) some states apply the sales tax to

Members of the District of Columbia Council are considering a new excise tax on sugar sweetened beverages (SSB). The excise tax would be levied at a rate of 1.5 cents per ounce of taxable beverage, defined to include all drinks with “any form of natural common sweetener.” The bill exempts beverages where milk is the

Ever since the June 2018 South Dakota v. Wayfair decision, in which the U.S. Supreme Court gave the green light for broader remote sales tax collections by overturning the physical presence requirement, tax observers have wondered which state’s remote sales tax regime will be the next to show up in court. Five states—Alabama, Colorado, Kansas,

This week’s map examines states’ rankings on the individual income tax component of the 2020 State Business Tax Climate Index. The individual income tax is important to businesses because states tax sole proprietorships, partnerships, and in most cases, limited liability companies (LLCs) and S corporations, under the individual income tax code. However, even traditional C corporations

Key Findings A typical American household with four wireless phones paying $100 per month for taxable wireless service can expect to pay about $260 per year in taxes, fees, and surcharges–up from $229 in 2018. Nationally, these impositions make up about 21.7 percent of the average customer’s bill–the highest rate ever. Illinois has the highest

My Pittsburgh Steelers aren’t having a great year. They aren’t quite in Jim Mora “Playoffs?” territory, but certainly no one is talking about home-field advantage. Except city tax authorities, that is, who are defending their own home-field advantage in the one venue that Pittsburgh’s professional teams lack: a court. Many states and some cities impose

In the coming weeks, we will break down our recently released 2020 State Business Tax Climate Index with maps illustrating each of the five major components of the Index: corporate, individual, sales, property, and unemployment insurance taxes. Today we look at states’ rankings on the corporate tax component, which accounts for 19.7 percent of each state’s overall rank. The corporate tax

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Here’s the good news: West Virginia’s tax structure ranks above average in our latest edition of the State Business Tax Climate Index, to the credit of bipartisan efforts of tax reform over several successive gubernatorial administrations. And here’s the bad news: several sectors of the economy have been left behind by these reforms, subject to

If you’re like many Americans, you’ve been stockpiling bags of chocolate and nougat-based treats to share with trick-or-treaters—or, if you’re like me, to share with yourself. Generously. According to the National Retail Federation, Halloween shoppers plan to spend $2.6 billion on candy in 2019—a whopper of a number. In other words, there’s no better time

Key Findings Many states have adopted inflation adjustments within their individual income tax codes to avoid unlegislated and unintended increases in tax burdens. If individual income tax provisions are not adjusted for inflation, taxpayers’ burdens increase over time, with the greatest increases often concentrated among lower- and middle-income taxpayers. Inflation increases tax burdens both by

Ballot measures are rarely what drive voters to the polls, but in many states, voters will have the opportunity to weigh in on significant policy questions when they cast their ballot on November 5th. These measures come in a variety of forms: some are referenda (placed on the ballot by the legislature); others are initiatives

This presentation was made to the Wisconsin State Assembly’s Committee on Community Development on October 23, 2019, during an informational hearing on housing, property taxes, and their relationship to community development and growth. This testimony drew from the property tax recommendations set forth in Wisconsin Tax Options: A Guide to Fair, Simple, Pro-Growth Reform. During

Explore Our Interactive Tool Executive Summary The Tax Foundation’s State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare. While there are many ways to show how much is collected in taxes by state governments, the Index is designed to show how well states structure

When Texans step into the voting booth on November 5, they’ll have the option to prohibit an individual income tax through a constitutional amendment. The state constitution already includes measures to prevent an income tax, but Proposition 4 creates a more robust barrier by outlawing it altogether. The proposed amendment would read, “The legislature may

Ahead of the upcoming legislative sessions, Pennsylvania and New Mexico are considering legislative action which would legalize the sale of adult recreational marijuana, joining 11 other states and the District of Columbia. Both Pennsylvania and New Mexico are considering excise tax models applied to the retail selling price. In Pennsylvania, Senators Daylin Leach (D) and

This presentation was made to the Massachusetts Senate Corporate Tax Subcommittee, an initiative of the broader Senate Revenue Working Group. The working group is taking a holistic look at Massachusetts’ tax code with a goal of making legislative recommendations for reform by the end of this session, which runs until January 5, 2021. Sen. Adam