State Tax

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
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Just as several states have individual alternative minimum taxes (AMTs) that prevent households and pass-through businesses from claiming “too many” itemized deductions, some states levy corporate AMTs to prevent corporations from reducing their corporate income tax liability beyond a certain level. Five states currently collect corporate AMTs: California, Iowa, Kentucky, Minnesota, and New Hampshire. This
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Next month, Colorado voters will be asked to consider a measure that would legalize sports betting in the state. Proposition DD would authorize sports betting for people 21 or older in-person at casinos and online through internet sports betting operators contracted by casinos. The operators will be charged a tax of 10 percent on their
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In May, the U.S. Bureau of Economic Analysis released new data covering differences in purchasing power in different metropolitan and nonmetropolitan areas in 2017. In layman’s terms, the data compares how much $100 can buy in different regions of the country. This post focuses on comparing the purchasing power in different metropolitan areas around the country. There
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This week’s state tax map looks at throwback and throwout rules in states’ corporate tax codes. These rules may not be widely understood, but they have a notable impact on business location and investment decisions, and reduce economic efficiency for the states which impose such rules. Over the long run, these rules reduce competitiveness while
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When we think of road funding, we tend to think of the taxes we pay at the pump. Gas taxes are largely used to fund infrastructure maintenance and new projects, but the amount of state and local road spending covered by gas taxes, tolls, user fees, and user taxes varies widely among states. It ranges
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Kansas’ Attorney General and the Department of Revenue are at odds, and remote sellers are caught in the middle. Just prior to an October 1 effective date, the Attorney General’s Office issued a nonbinding legal opinion concluding that the Department of Revenue’s decision to require remote sellers to collect and remit sales taxes to the
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Today’s map zeroes in on states that have a “marriage penalty” in their individual income tax brackets. Under a progressive, graduated-rate income tax system, tax rates increase as a taxpayer’s marginal income increases. A marriage penalty exists when a state’s income brackets for married taxpayers filing jointly are less than double the bracket widths that
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Although the word is often applied to any difficult decision, a dilemma, properly speaking, arises when one is forced to choose exclusively from bad options. The two bad options are termed the “horns” of the dilemma. As Chicago contemplates how to close a revenue shortfall and potentially generate additional revenue for new spending priorities, however,
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