State Tax

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,
0 Comments
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
0 Comments
Key Findings Forty-five states and the District of Columbia collect statewide sales taxes. Local sales taxes are collected in 38 states. In some cases, they can rival or even exceed state rates. The five states with the highest average combined state and local sales tax rates are Tennessee (9.53 percent), Louisiana (9.52 percent), Arkansas (9.47
0 Comments
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
0 Comments
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
0 Comments
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
0 Comments
Next week brings one decade to a close and opens the next: the 2020s. The equivalent decade a hundred years prior saw the prohibition of alcohol and the birth of speakeasies. While it’s hard to say whether these new ’20s will be roaring with a comeback of bobbed haircuts, art deco, and the Charleston, two things
0 Comments
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
0 Comments
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
0 Comments
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
0 Comments
Tonight, the Utah legislature enacted a rebalancing of the state’s tax code in a one-day special session at the culmination of a months’-long process that saw lawmakers crisscross the state and entertain more than 62 hours of public comment across 17 meetings. The legislation enacted tonight was in some respects a product of that process,
0 Comments
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
0 Comments
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
0 Comments
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
0 Comments