State Tax

Income Tax Filing and Payment Deadline Changes As of April 1, every state with an individual income tax has offered taxpayers some form of income tax extension. Most states, with a few exceptions, traditionally follow the federal government in holding Tax Day on April 15. As a result, when the Internal Revenue Service (IRS) moved

Key Findings As states grapple with declining revenues and delay tax collections, policymakers must begin to think about how to close out their FY 2020 budgets consistent with balanced budget requirements. Every state but Vermont has a balanced budget requirement, but details vary across the country. In some states, a budget must be balanced when

As we all try to limit our exposure to the coronavirus as much as possible, delayed tax filing and payment deadlines are one less thing to worry about for now—at least in most states. It was state governments that took the lead, extending deadlines even before the federal government acted, but once the IRS extended

Economic cycles can have significant impacts on state revenue, but states can prepare for the inevitable downturns during good times by putting away money in a revenue stabilization fund—or rainy day funds, as they’re often known. Funding levels and the actual names of these funds may vary from state to state, but rainy day funds

New Jersey is temporarily waiving corporate nexus arising from employees teleworking due to the COVID-19 pandemic—a response to the crisis that other states should follow. As we have noted previously, when employees work in a state in which their employer does not otherwise operate, that can give their employer sufficient contacts (“nexus”) with the state

On March 26, weekly initial unemployment benefit claims hit the highest level in U.S. history, with five times as many filed as during the worst week of the Great Recession. Mandatory business closures and shelter-in-place orders have radically accelerated job losses compared to the steadier pace of layoffs in prior recessions, meaning these claims likely

On March 19 we launched a tracker providing a repository of information related to state fiscal policy responses to COVID-19. We are updating the tracker frequently and will be using the Tax Foundation blog to summarize new developments and provide analysis of relevant trends as they emerge. This post is part of that series. Past Updates:

On March 19 we launched a tracker providing a repository of information related to state fiscal policy responses to COVID-19. We are updating the tracker frequently and will be using the Tax Foundation blog to summarize new developments and provide analysis of relevant trends as they emerge. This post is part of that series. Past Updates:

There’s a good chance you’re reading this from home. Congratulations, you’re practicing social distancing! But while you’re putting six feet of distance between yourself and other human beings, you and your employer might also be in closer contact with state and local tax regimes than you realize. Corporate Income Tax Nexus and Apportionment Many businesses

On March 19 we launched a tracker providing a repository of information related to state fiscal policy responses to COVID-19. We are updating the tracker frequently and will be using the Tax Foundation blog to summarize new developments and provide analysis of relevant trends as they emerge. This post is part of that series. Past Updates:

The economic relief bill that federal lawmakers have reportedly reached an agreement on includes $150 billion designated for state efforts to combat the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides for this state aid under the auspices of a new Coronavirus Relief Fund. The current language, however, may exclude COVID-19

On March 19 we launched a tracker providing a repository of information related to state fiscal policy responses to COVID-19. We are updating the tracker frequently and will be using the Tax Foundation blog to summarize new developments and provide analysis of relevant trends as they emerge. This post is part of that series. Past

On March 19 we launched a tracker providing a repository of information related to state fiscal policy responses to COVID-19. We are updating the tracker frequently and will be using the Tax Foundation blog to summarize new developments and provide analysis of relevant trends as they emerge. State Legislative Session Changes Many states have adjusted

New York Governor Andrew Cuomo (D) has become an avid supporter of legalized recreational marijuana and has vowed to legalize it this year. This is the second year in a row Gov. Cuomo has included legalization in his budget. In 2019, the measure was eventually taken out of the budget, despite support among voters, as

Unemployment claims are going to tax state unemployment compensation trust funds beyond their limits. We need to start thinking about what to do about it. The joint federal-state system of unemployment insurance (UI) is a key component of the governmental response to the COVID-19 crisis, meeting the immediate needs of workers who are laid off

This morning, the federal government moved tax day from April 15 to July 15 in response to the coronavirus pandemic, granting more time for both filing and payment. But for many taxpayers, it might not matter much if states don’t follow suit. And right now, only a few have done so. Unfortunately, most states are

With GDP forecasts turning sharply negative for the quarter, states are bracing for the worst—or will be when legislative sessions resume after the suspensions many have implemented in light of the COVID-19 pandemic. On Sunday, Goldman Sachs cut its second quarter U.S. GDP estimate from 0 percent to a stunning -5 percent, which would represent

Key Findings The Maryland General Assembly is on the verge of adopting a vaguely worded, legally dubious tax on digital advertising in the final days of this session—now paired with new tobacco taxes. Although lawmakers intend to tax large out-of-state businesses, much of the tax burden would be borne by Maryland-based businesses and Maryland consumers.

Tuesday, the Georgia House of Representatives passed HB 949, a bill to consolidate the state’s six individual income tax brackets into one, reduce the top rate from 5.75 percent to a new 5.375 percent flat rate, eliminate the Georgia itemized deduction for state income taxes paid, create a new tax credit for individuals with incomes

Maryland’s much-debated Digital Advertising Gross Revenues Tax (SB 2) has been amended and reported from committee after a month’s deliberation in a working group. (For our analysis of the introduced version, click here.) The amended version of SB 2 changes the language about the sourcing of the digital advertising services to include factor apportionment. The