State Tax

State-levied taxes make up the vast majority of each state’s general fund budget, and thus are the most obvious source of state revenue. But state governments also receive a notable amount of assistance from the federal government. In fiscal year (FY) 2017, 22.9 percent of state revenues came from federal grants-in-aid. Federal aid is allocated
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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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In recent years, hurricanes devastated the U.S. Atlantic coast and other island territories. Many communities—including those in Puerto Rico and the Virgin Islands—are still recovering. This week, the House of Representatives plans to vote on a disaster aid package to expand tax credits, provide subsidies, and increase funding contributions to taxpayers throughout the island territories.
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Kansas Gov. Laura Kelly’s Fiscal Year 2021 budget and tax proposals can be targeted to effectively restructure Kansas’ tax base. Her budget proposal includes expanding Kansas’ sales tax base and providing state funding for local property tax relief. These proposals can be used to restructure Kansas’ sales and property tax bases, respectively. Sales Tax Restructuring
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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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Introduction Alaska has a history of blazing its own path. It forgoes both an income tax and a state sales tax, a distinction shared only with New Hampshire. Many sparsely populated jurisdictions forgo property taxes, and some jurisdictions—including large cities like Anchorage and Fairbanks—go without a local sales tax. Alaska is, therefore, the only state
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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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Key Findings Forty-four states levy a corporate income tax. Rates range from 2.5 percent in North Carolina to 12 percent in Iowa. Six states—Alaska, Illinois, Iowa, Minnesota, New Jersey, and Pennsylvania—levy top marginal corporate income tax rates of 9 percent or higher. Ten states—Arizona, Colorado, Florida, Kentucky, Mississippi, Missouri, North Carolina, North Dakota, South Carolina,
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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,
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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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