Appendix E. 2019 Tax and Revenue Changes by State · increase state revenue by between $6.3 million...

5

Appendix E. 2019 Tax and Revenue Changes by State This appendix shows the tax and revenue changes that took place by state in 2019 regular and special legislative sessions that will affect state revenues in FY 2020 and FY 2021. The appendix also includes any tax measures approved by voters in the 2018 election. Lastly, changes effective in a certain fiscal year as a result of legislation passed in an earlier year are also reflected in the totals.

Tax Revenue reflects the revenue effect of tax actions for that fiscal year.

Revenue Total reflects the total amount of state revenue change. It combines revenue derived from tax actions with other revenue changes, such as fee increases, accelerations and other one-time changes. Recurring changes made for state policy reasons are not reflected in the totals. These changes are denoted with **. This appendix does not include changes in unemployment compensation.

The following abbreviations are used: AGI = Adjusted Gross Income B&O =Business and Occupation CPI = Consumer Price Index CIT = Corporate Income Tax EITC = Earned Income Tax Credit FDII = Foreign-Derived Intangible Income GILTI = Global Intangible Low-Taxed Income GRF = General Revenue Fund HMO = Health Maintenance Organization

IRC = Internal Revenue Code LLC = Limited Liability Corporation LLP = Limited Liability Partnership NOL = Net Operating Loss PIT = Personal Income Tax R&D = Research and Development SSTP = Streamlined Sales Tax Project TCJA = 2017 Tax Cuts and Jobs Act TY = Tax Year

Jurisdiction Description Tax Category

Effective Date

FY 2020 FY 2021

Alabama Increased and extended the private hospital assessment. The rate went from 5.75% to 6%. This assessment will sunset Sept. 30, 2022.

Health Care

10/1/2019 $23.7 Unknown

Extended the nursing home assessments that were set to expire in 2019. No change in taxpayer liability.

Health Care

9/1/2019 N.A.** N.A.**

Increased motor fuel tax rates by 6 cents. Two more increases will be phased in on Oct. 1, 2020 and Oct. 1, 2021. The increase in 2020 is expected to bring in an additional $65 million in FY 2021. These changes were part of a larger reform measure.

Motor Fuel 8/31/2019 $194.0 $194.0

Tax Revenue=

$217.7 $194.0 Enacted a new license fee on electric/hybrid

vehicles. Fee 1/1/2020 $3.0 $4.2

Non-Tax Revenue=

$3.0 $4.2 Revenue Total= $220.7 $198.2 Alaska No significant tax and non-tax revenue changes. $0.0 $0.0 Arizona Conformed the state's tax code to the IRC as of

Jan. 1, 2019, including federal provisions that became effective in 2018. This change was part of a larger reform measure.

Corporate Income

1/1/2018 $7.1 N.A.

6

Reduced the annual increase of the aggregate cap for a private school tuition tax credit for students from low-income families.

Corporate Income

7/1/2020 $5.4 $13.4

Conformed the state's tax code to the IRC as of Jan. 1, 2019, including federal provisions that became effective in 2018. This change was part of a larger reform measure.

Personal Income

1/1/2018 $209.9 N.A.

Made numerous changes to the state individual income tax code, including the following: 1) eliminating personal and dependent exemptions, 2) increasing the standard deduction, 3) allowing taxpayers that take the standard deduction to increase their standard deduction by 25% of their charitable contributions that otherwise would have been deductible had they itemized their deductions, 4) establishing a new dependent tax credit, and 5) reducing the number of tax brackets from five to four and lowering the marginal tax rates. These changes were a part of a larger reform measure.

Personal Income

1/1/2019 -$326.0 N.A.

Expanded an existing charitable tax credit to include charitable organizations supporting adults with chronic illness or physical disability.

Personal Income

1/1/2019 -$1.2 N.A.

Enacted "Wayfair" provisions enabling Arizona to begin collecting sales tax from out-of-state businesses.

Sales and Use

10/1/2019 $57.0 $28.0

Expanded an existing sales tax exemption for propagative materials to include fertilizers.

Sales and Use

1/1/2019 -$7.4 -$7.4

Tax Revenue=

-$55.2 $34.1 Non-Tax Revenue=

$0.0 $0.0

Revenue Total= -$55.2 $34.1 Arkansas Extended the sunset date for the special privilege

tax on medical marijuana to July 1, 2021. No change in taxpayer liability.

Health Care

7/1/2019 $2.5** $2.5**

Enacted a new tax of 1.6% on the average wholesale price of fuel. This change was a part of a larger tax reform measure.

Motor Fuel 7/1/2019 $58.0 $86.0

Reduced the tax credit available to offset the insurance premium tax. This change was a part of a larger tax reform measure.

Other 7/1/2019 $1.0 $4.0

Enacted personal income tax rate changes. The state will consolidate its brackets through 2021, overall reducing its brackets from six to four. The top income tax rate will fall from 6.9% to 5.9% over that period. These changes were a part of a larger tax reform measure.

Personal Income

7/1/2019 -$26.0 -$74.0

See Appendix D for property tax changes. Property Modified the sales and use tax base to include

remote sellers and marketplace facilitators. This change was a part of a larger tax reform measure.

Sales and Use

7/1/2019 $32.0 $27.0

7

Tax Revenue=

$65.0 $43.0 Reduced the concealed carry fee from $100 to

$50. Fee 7/1/2019 -$1.4 -$1.4

Increased 911 system fees from $0.65 to $1.30. Fee 7/1/2019 $10.1 $10.1 Non-Tax Revenue=

$8.7 $8.7

Revenue Total= $73.7 $51.7 California Eliminated like-kind exchanges of personal and

intangible property for single filers earning more than $250,000 or joint filers earning more than $500,000. This was part of a larger reform measure that partially conformed to the IRC.

Corporate Income

1/1/2019 $238.0 $200.0

Eliminated net operating loss carrybacks. This was part of a larger reform measure that partially conformed to the IRC.

Corporate Income

1/1/2019 $200.0 $190.0

Limited the deduction of federal deposit insurance corporation premiums paid by banks. This was part of a larger reform measure that partially conformed to the IRC.

Corporate Income

1/1/2019 $65.0 $65.0

Eliminated the difference between state and federal law regarding the tax treatment of corporate mergers and acquisitions. This was part of a larger reform measure that partially conformed to the IRC.

Corporate Income

1/1/2019 $38.0 $60.0

Repealed the "technical termination" of partnerships. This was part of a larger reform measure that partially conformed to the IRC.

Corporate Income

1/1/2019 $10.0 $5.0

Increased the annual revenue threshold to $25 million for certain simplified accounting rules for small businesses. This was part of a larger reform measure that partially conformed to the IRC.

Corporate Income

1/1/2019 -$280.0 -$110.0

Limited noncorporate business losses. This was part of a larger reform measure that partially conformed to the IRC.

Personal Income

1/1/2019 $1,300.0 $850.0

Expanded the state's EITC. Personal Income

1/1/2019 -$600.0 -$600.0

Created a tax exemption for menstrual products and children's diapers. This change sunsets Jan. 1, 2022.

Sales and Use

1/1/2020 -$17.5 -$35.0

Tax Revenue=

$953.5 $625.0 Non-Tax Revenue=

$0.0 $0.0

Revenue Total= $953.5 $625.0 Colorado Following the U.S. Supreme Court ruling in Wayfair

v. South Dakota, this bill codified the Department of Revenue's rules that established economic nexus for out-of-state retailers and in-state destination-based sourcing rules, as well as requiring marketplace facilitators to collect and remit sales taxes on behalf of their vendors. It is expected to increase revenue on an ongoing basis starting in FY 2020. It is estimated to bring in

Sales and Use

6/1/2019 $43.9 $60.3

8

anywhere from $40.5 million to $47.2 million in FY 2020, and $54.9 million and $65.7 million in FY 2021. The change was a party of a larger reform measure.

In Colorado, retailers may retain a fee for collecting and remitting state sales tax. HB 1245 increased the state vendor fee from 3.33% to 4% and capped the vendor fee allowance at $1,000 per account per filing period. The additional funds generated from this cap are allocated for the development of affordable housing.

Sales and Use

8/2/2019 $23.1 $47.9

Voters approved a measure that decriminalized sports betting and levies a tax on net sports betting revenue. The new law would levy a 10% tax on net sports betting proceeds. HB 1327 annually increases state revenue and expenditures on an ongoing basis. This bill is expected to increase state revenue by between $6.3 million and $6.5 million in FY 2020. (This represents a part-year impact.) It is expected to increase revenue between $9.7 million and $11.2 million in FY 2021. As the sports betting market matures in the state, revenue is expected to grow around 10% in FY 2022, from between $13.5 million to $15.2 million. Revenue in FY 2020 and FY 2022 include licensing fees for the initial license and biannual renewal, respectively, for the majority of licenses.

Other 5/1/2020 $1.4 $9.7

Tax Revenue=

$68.4 $117.9 Increased the waste tire fee from 55 cents to $2

per tire from Jan. 1, 2020, through Dec. 31, 2023, and recreated the End User Fund and rebate program. SB 198 will increase state revenue and expenditures through FY 2023-2024. On net, the bill increases state cash fund revenue by $3,262,500 in FY 2019-2020 and $6,525,000 in FY 2020-2021, which is credited 75% to the End Users Fund and 25% to the Waste Tire Fund. The End Users Fund receives 75% of the waste tire fee revenue under the bill, estimated at $3,375,000 in FY 2019-2020 and by $6,750,000 in FY 2020-21. The Waste Tire Fund receives 25% of the waste tire fee revenue, which compared to current law, will result in a decrease in revenue to the fund of $112,500 in FY 2019-2020 and $225,000 in FY 2020-2021.

Fee 1/1/2020 $3.3 $3.3

Expanded the regulatory charge of the Department of Natural Resources related to oil and gas production, and allowed local governments to also regulate oil and gas operations within their jurisdictions. SB 181 increased state government revenue and

Fee 4/16/2019 $3.0 $3.0

9

expenditures and may also affect local government revenue and expenditures on an ongoing basis. This bill increased state revenue from application fees to the Colorado Oil and Gas Conservation Commission (COGCC) by $3 million per year starting in FY 2019-2020, and may impact severance tax revenue in the future. Currently, the COGCC's estimated cost to process a request for a new oil and gas location is approximately $1,000, and the estimated cost to process an application for a permit to drill is approximately $300. Current law caps fee amounts at $200; however, under current practice the DNR does not charge any permit fees. This bill permits the DNR to establish fee amounts in rule. The DNR estimates that the COGCC processes about 600 new oil and gas location applications, and 8,000 permits to drill applications annually. Based on this volume of applications and anticipated increase in fee amounts, the bill will increase state revenue.

Modified ownership and investment definitions and allows publicly traded corporations to own or invest in a marijuana business. HB 1090 will increase state revenue and expenditures on an ongoing basis. This bill will increase state cash fund revenue by $3.1 million in FY 2019-2020 and FY 2020-2021 to the Marijuana Cash Fund in DOR from fees. This revenue is subject to the Taxpayer Bill of Rights (TABOR); however, under the March 2019 Legislative Council Staff forecast, a TABOR surplus is not expected in FY 2019-2020 or FY 2020-2021.

Fee 5/29/2019 $3.1 $3.1

This bill created the Front Range Waste Diversion Enterprise in the Department of Public Health and Environment to promote waste diversion. SB 192 will increase state revenue and expenditures until Sept. 1, 2029. This bill will increase revenue by $1,689,503 in FY 2019-2020, $5,220,551 in FY 2020-2021, and $8,961,975 in FY 2021-2022 to the Front Range Waste Diversion Cash Fund. When fully implemented, the bill increases fee revenue by $14,914,117 in FY 2023-2024. The fee will increase from 35 cents per cubic yard to 95 cents per cubic yard.

Fee 8/2/2019 $2.0 $2.0

Non-Tax Revenue=

$11.3 $11.3 Revenue Total= $79.7 $129.2 Connecticut Increased excise tax rates for alcoholic beverages,

except beer, by 10%. Revenue amounts reflect sales tax and FY 2020 floor tax impacts.

Alcohol, Sales and

Use

10/1/2019 $4.9 $5.3

Eliminated the Capital Stock Tax method. This change will be eliminated by Jan. 1, 2024.

Corporate Income

1/1/2021 N.A. -$5.7

10

Extended the 10% surcharge for two years. (7.5% vs. 8.25%) This change was part of a larger reform measure. No change in taxpayer liability.

Corporate Income

1/1/2019 $60.0** $37.5**

Repealed the $250 (biennial) Business Entity Tax. Corporate Income

1/1/2020 N.A. -$44.0

Lowered the cap on the usage of R&D and Urban and Industrial Site Reinvestment tax credits. The cap went from 70% to 50.01%.

Corporate Income

1/1/2019 $34.4 $21.5

Repealed the "7/7" Brownfield and Underutilized Property Redevelopment Tax Credit.

Corporate Income

1/1/2019 N.A. $8.0

Eliminated the scheduled reduction and maintained the Hospital Tax at the FY 2019 level. No change in taxpayer liability.

Health Care

7/1/2019 $516.0** $516.0**

Mandated online platforms (short-term rental facilitators) to collect and remit the occupancy tax.

Other 10/1/2019 $1.5 $2.0

Modified the Real Estate Conveyance Tax by adding a marginal rate of 2.25% on any portion of a sale exceeding $2.5 million.

Other 7/1/2019 N.A. $6.3

Phased in reductions or eliminations of the state admissions and dues tax for various venues.

Other 7/1/2019 -$0.8 -$1.6

Established a Family and Medical Leave Insurance Program supported by employee contributions up to 0.5%.

Other 1/1/2021 N.A. TBD

Allowed taxpayers to calculate their property tax credit using the marginal amount of Real Estate Conveyance Taxes paid at the rate of 2.25%. The credit equals 33.3% of the amount paid and is applied over three years.

Personal Income

1/1/2021 N.A. N.A.

Extended the limits on the property tax credit established temporarily during the 2018-2019 biennium. This change was part of a larger reform measure. No change in taxpayer liability.

Personal Income

1/1/2019 $53.0** $53.0**

Delayed the scheduled increase to teachers' pension exemptions until income year 2021. This change was part of a larger reform measure. No change in taxpayer liability.

Personal Income

1/1/2019 $8.0** $8.0**

Extended and expanded the Angel Investor tax credit. The credit will now sunset July 1, 2024. This change was part of a larger reform measure.

Personal Income

7/1/2019 -$5.0 -$5.0

Reduced the credit for passthrough entity taxes paid.

Personal Income

1/1/2019 $50.0 $50.0

Expanded the exemption for Social Security income.

Personal Income

1/1/2019 -$24.2 -$17.4

Phased in the new exemption for pension and annuity income.

Personal Income

1/1/2019 -$32.8 -$41.1

Repealed the newly established tax credit for STEM graduates.

Personal Income

1/1/2019 $3.9 $7.9

Imposed a prepared foods tax of 1% in addition to the sales and use tax of 6.35%.

Sales and Use

10/1/2019 $48.3 $65.8

11

Expanded the base to include dry cleaning services, parking and interior design services.

Sales and Use

1/1/2020 $11.8 $24.4

Increased the tax rate on digital goods from 1% to 6.35%.

Sales and Use

10/1/2019 $27.5 $37.1

Expanded the enhanced collections of online transactions by: 1) lowering the threshold to establish economic nexus and 2) implementing the use of Certified Service Providers. (Budget assumes $30 million from this in FY 2021)

Sales and Use

7/1/2019 $1.5 $32.0

Raised the legal purchase for cigarettes and tobacco products to 21. The revenue amounts reflect the sales tax impact. This results in a tax base reduction.

Tobacco 10/1/2019 -$4.9 -$6.3

Imposed a tax on e-cigarettes and paraphernalia. E-cigarettes will be taxed at a rate of $0.40 per mL for prefilled products and 10% on the wholesale price of all other e-cigarette products including paraphernalia. Revenue amounts reflect sales tax impact.

Tobacco 10/1/2019 $2.0 $2.7

Tax Revenue=

$118.1 $141.9 Increased the fee on ridesharing services. This

increased from 25 cents to 30 cents per ride. Fee 7/1/2019 $4.5 $4.6

Imposed a 10-cent fee on single-use plastic bags at the point of sale, with a ban in effect beginning July 1, 2021. This change was part of a larger reform measure.

Fee 8/1/2019 $27.7 $26.8

Increased the Motor Vehicle trade-in fee from $35 to $100. Revenues will be deposited into the general fund.

Fee 10/1/2019 $7.4 $9.8

Increase annual filing fees with the Secretary of State for LLPs and LLCs from $20 to $100.

Fee 7/1/2020 N.A. $12.0

Non-Tax Revenue=

$39.6 $53.2 Revenue Total= $157.7 $195.1 Delaware Modified the state's alcoholic beverage tax by

shifting it from a "floor" tax to a sales tax for wholesalers. It is estimated that this will bring in an additional $1.8 million to $2.4 million in revenue. This is a temporary tax change, and it was part of a larger reform measure.

Alcohol 7/1/2019 $2.1 $2.1

Tax Revenue=


$0.0 $0.0

Revenue Total= $2.1 $2.1 Florida Enacted a back-to-school sales tax holiday.

Exempted certain clothing, school supplies, personal computers and related accessories from Aug. 2-Aug. 6, 2019.

Sales and Use

5/15/2019 -$41.7 N.A.

Enacted a disaster preparedness sales tax holiday. Exempted certain tangible personal property from May 31-June 6, 2019.

Sales and Use

5/15/2019 -$5.5 N.A.

12

Exempted donations made by a business to a charitable nonprofit (501(c)3) from use tax.

Sales and Use

7/1/2019 -$3.7 -$3.8

Reduced the tax rate on the lease of commercial real property from 5.7% to 5.5%.

Sales and Use

1/1/2020 -$27.4 -$60.0

Enacted a refund for certain air carriers. Certain air carriers may receive a refund of 1.42 cents per gallon of the tax imposed on aviation fuel purchased.

Other 7/1/2019 -$10.5 -$14.9

Tax Revenue=

-$88.8 -$78.7 Increased the traffic infraction fee reduction from

9% to 18% for individuals that complete driving improvement school.

Fee 1/1/2020 -$0.7 -$1.7

Non-Tax Revenue=

-$0.7 -$1.7 Revenue Total= -$89.5 -$80.4 Georgia Reduced the number of quality jobs needed to

qualify for the Quality Jobs Tax credit in Tier 1 and Tier 2 rural counties from 50 to 10 and 25, respectively.

Corporate Income

7/1/2019 -$2.0 -$6.0

Doubled the cap for 529 plan contributions. This change will result in an increase ranging from $1.9 million to $3 million annually.

Personal Income

1/1/2019 $2.5 $2.5

Modified the threshold for out-of-state retailers to collect and remit sales taxes. The threshold was reduced from $250,000 to $100,000 annual sales in the state. This will also result in a local revenue increase of $3.2 million in FY 2020 and $7.3 million in FY 2021.

Sales and Use

1/1/2020 $3.9 $8.9

Tax Revenue=


$0.0 $0.0

Revenue Total= $4.4 $5.4 Hawaii Created a new estate tax bracket at $10 million.

The rate will now be 20%, rather than 15.7%, for taxpayers that meet this threshold.

Other 1/1/2020 $4.5 $4.7

Made the transient accommodation tax applicable to mandatory resort fees.

Other 7/1/2019 $9.1 $10.3

Increased the cap on film tax credits. Personal Income

1/1/2019 -$15.0 -$15.0

Enacted a nexus standard for business income earned in Hawaii.

Personal Income

1/1/2020 $3.0 $3.1

Decoupled the research credit from the IRC. Applied it to the base. Imposed a $5 million aggregate cap.

Personal Income

1/1/2020 -$1.7 -$5.0

Modified the general excise tax to include marketplace facilitators as sellers of tangible personal property, intangible property and services.

Sales and Use

1/1/2020 $4.0 $9.8

Tax Revenue=


$0.0 $0.0

Revenue Total= $3.9 $7.9

13

Idaho Modified IRC conformity in regard to the Tax Cuts and Jobs Act; specifically, the state provided the incentives for the repatriation of foreign assets and deductions for GILTI and FDII.

Corporate Income

1/1/2017 $12.8 $2.9

Enacted collection requirements for marketplace facilitators and online retailers following the Wayfair decision.

Sales and Use

6/1/2019 $30.0 $34.5

Exempted labor costs from sales tax when adding accessories to a new vehicle.

Sales and Use

7/1/2019 -$1.0 -$1.0

Tax Revenue=


$0.0 $0.0

Revenue Total= $41.8 $36.4 Illinois Decoupled from the federal foreign-derived

intangible income deduction. Corporate

Income 1/1/2020 $94.0 N.A.

Enacted the Blue Collar Jobs Act, which enacted or expanded a series of incentives for economic development.

Corporate Income

1/1/2020 -$20.0 N.A.

Eliminated the state's corporate franchise tax. The tax will be phased out until 2024. This will result in a loss of $200 million per year over the phase-out period.

Corporate Income

1/1/2020 -$200.0 -$200.0

Enacted an assessment on managed care organizations.

Health Care

1/7/2019 $530.0 N.A.

Enacted a new parking excise tax rate. The rate is 6% of the purchase price for a parking space paid for on an hourly, daily or weekly basis. The rate is 9% of the purchase price for a parking space paid for on a monthly or annual basis.

Other 1/1/2020 $30.0 $60.0

Enacted numerous gaming changes, including the legalization of sports betting. These changes include a multiyear implementation timeframe.

Other 1/7/2019 N.A. N.A.

Enacted a motor fuel tax increase. The rate went from 19 cents to 38 cents.

Motor Fuel 1/7/2019 $1,295.0 N.A.

Enacted a $10,000 cap on an item of like kind's trade-in allowance.

Sales and Use

1/1/2020 $30.0 $60.0

Enacted legislation modifying remote sales tax collection requirements.

Sales and Use

1/1/2020 N.A. $208.0

Required marketplace facilitators to collect and remit taxes for their third-party sellers.

Sales and Use

1/1/2020 $80.0 $120.0

Expanded the manufacturing machinery and equipment exemptions.

Sales and Use

1/7/2019 -$60.0 N.A.

Increased the cigarette tax rate from $1.98/pack to $2.98/pack. This change is estimated to increase revenue between $100 and $150 million in FY 2020.

Tobacco 7/1/2019 $125.0 N.A.

Enacted a tax of 15% of the wholesale price on e-cigarettes.

Tobacco 7/1/2019 $10.0 N.A.

Tax Revenue=

$1,914.0 $248.0 Increased the electric vehicle registration fee. The

fee increased from $35 to $248. Fee 1/1/2020 $4.0 N.A.

14

Increased the passenger vehicle registration fee from $98 to $148.

Fee 1/1/2020 $465.0 N.A.

Increased registration fees for trucks, buses and trailers.

Fee 1/1/2020 $25.0 N.A.

Increased the fee on certificates of title. Fee 1/7/2019 $152.0 N.A. Repealed commercial distribution fees. Fee 1/7/2019 -$50.0 N.A. Enacted a franchise tax amnesty program from

Oct. 1 to Nov. 15, 2019. Non-Tax 1/10/2019 $175.0 N.A.

Non-Tax Revenue=

$771.0 $0.0 Revenue Total= $2,685.0 $248.0 Indiana Phased in a reduction to the corporate income tax

from 8.5% in FY 2012 to 6.5% in FY 2016. In the 2014 legislative session, the corporate income tax rate was further phased down from 6.5% in FY 2016 to 4.9% in FY 2022 and thereafter. The rate will be reduced from 5.75% to 5.5% in FY 2020, and will reduce to 5.25% in FY 2021. This change was a part of a larger reform measure.

Corporate Income

New phased

down rate is effective

at the beginning

of each fiscal year.

-$227.5 -$240.3

In the 2014 legislative session, the Financial Institution Tax (FIT) was phased down from 6.5% in CY 2018 to 4.9% in CY 2023 and thereafter. The rate will go from 6.25% in CY 2019 to 6% in CY 2020, and 5.5% in CY 2021.

Other New phased

down rate is effective

at the beginning

of each fiscal year.

-$28.5 -$36.2

Enacted TCJA conformity legislation. Other 1/1/2018 -$5.4 -$4.2 Enacted changes to the utility receipts tax. Other 1/1/2021 N.A. -$1.5 Enacted new (sports gaming) and modified

existing gaming taxes. This change was part of a larger reform measure.

Other 7/1/2019 $18.8 $34.4

Expanded local innkeepers’ tax liability to include rooms, lodgings or other accommodations in a house, condominium or apartment that are regularly furnished for consideration for less than 30 days.

Other 7/1/2019 Indeterminable, but

potentially significant

increase.

Indeterminable, but


increase.

Expanded the military income tax deduction by providing a deduction for 100% of income. Previously, the tax deduction went up to $6,250.

Personal Income

1/1/2020 -$3.3 -$6.9

Created exemptions for qualified data center equipment, including electricity.

Sales and Use

1/1/2019 Indeterminable, but


increase.

Indeterminable, but


increase. Enacted a new provision to require marketplace

facilitators to collect sales tax on behalf of third-party sellers. This change is estimated to bring in up to $55.8 million to $71.6 million in FY 2020 and up to $67 million to $86 million in FY 2021.

Sales and Use

7/1/2019 $63.7 $76.5

Tax Revenue=

-$182.2 -$178.2 Enacted changes to gaming license fees. Fee 7/1/2019 $9.0 $4.0

15

Non-Tax Revenue=

$9.0 $4.0 Revenue Total= -$173.2 -$174.2 Iowa Expanded the Beginning Farmer Tax Credit. Personal

Income 1/1/2019 -$0.4 -$1.4

Expanded the state's Housing Tax Credits. Personal Income

7/1/2019 -$2.2 -$4.9

Extended the Targeted Jobs Tax Credit to June 30, 2021. No change in taxpayer liability.

Personal Income

7/1/2019 $0.6** $1.2**

Expanded the School Tuition Tax Credit. Personal Income

1/1/2020 -$0.1 -$1.1

Reinstated the geothermal tax credit. Personal Income

1/1/2019 -$1.0 -$1.0

Enacted a sales tax exemption on grain bins. Sales and Use

1/1/2019 -$5.2 -$5.3

Narrowed the state's economic nexus provision by removing the $100,000 provision and only requiring a remote retailer to have nexus if they make 200 separate transactions.

Sales and Use

7/1/2019 -$0.9 -$1.0

Modified the machinery and equipment sales tax exemption for parts used at property that is centrally assessed.

Sales and Use

1/1/2016 $1.5 $0.6

Tax Revenue=

-$8.3 -$14.1 Non-Tax Revenue=

$0.0 $0.0

Revenue Total= -$8.3 -$14.1 Kansas No significant tax and non-tax revenue changes. $0.0 $0.0 Kentucky Expanded the recycling and composting tax credit.

This change was part of a larger reform measure. Corporate

Income 1/1/2020 N.A. -$4.5

Raised the threshold for expensing of property under IRC Section 179 to $100,000. This change was part of a larger reform measure.

Corporate Income

1/1/2020 N.A. -$33.0

Repealed the Bank Franchise Tax and required financial institutions to report and pay tax as all other corporations. This change will have a fiscal impact in FY 2022. This change was a part of a larger reform measure.

Corporate Income

1/1/2021 N.A. N.A.

The Communications Services Tax was expanded to include video streaming. This change was a part of a larger reform measure.

Other 7/1/2019 $5.5 $6.0

Previously disallowed itemized deductions are authorized again, specifically for investment interest and wagering losses. This change was part of a larger reform measure.

Personal Income

1/1/2019 -$9.5 -$9.5

Authorized an extra tax credit for families with a certain threshold of income.

Personal Income

1/1/2019 -$4.2 -$4.2

Reduced rate for certain heavy equipment rentals. The rate went from 45 cents per $100 of assessed value to 5 cents per $100 of assessed value. This change was part of a larger reform measure.

Property 1/1/2020 N.A. $1.0

16

Required marketplace providers to collect on behalf of their third-party sellers. This change was part of a larger reform measure.

Sales and Use

7/1/2019 $17.0 $30.0

Authorized resale certificates for the sale of certain services. This change was part of a larger reform measure.

Sales and Use

7/1/2019 -$3.5 -$3.8

Authorized a de minimis sales volume for the sale of certain services. This change was part of a larger reform measure.

Sales and Use

7/1/2019 -$2.3 -$2.5

Clarified the taxation of certain manufacturing operations using tolling operations. This change was part of a larger reform measure.

Sales and Use

7/1/2018 -$4.5 -$5.0

Exempted admissions and all fundraising event sales for all nonprofit entities. This change was part of a larger reform measure.

Sales and Use

3/26/2019 -$19.3 -$21.0

Tax Revenue=


$0.0 $0.0

Revenue Total= -$20.8 -$46.5 Louisiana Allowed pass-through entities to elect to be taxed

at the entity level at the rate/bracket structure of individuals filing married jointly.

Corporate Income

1/1/2019 Increase Decrease

Allowed pass-through entities to elect to be taxed at the entity level at the rate/bracket structure of individuals filing married jointly.

Personal Income

1/1/2019 Decrease

Decrease

Tax Revenue=

$0.0 $0.0 Enacted a 50% increase in special overweight

permits. Fee 1/1/2020 $4.3 $8.6

Non-Tax Revenue=

$4.3 $8.6 Revenue Total= $4.3 $8.6 Maine Modified the Maine Investment Tax Credit. Corporate

Income 1/1/2020 $0.9 $7.8

Made several changes to tax credits, including the Maine Investment Tax Credit. Increased the EITC rate and expanded eligibility for the credit.

Personal Income

1/1/2020 $1.3 -$3.5

Reduced the property tax fairness tax credit income threshold from 6% to 5%.

Personal Income

1/1/2020 N.A. -$9.9

Enacted a marketplace facilitator sales tax collection requirement.

Sales and Use

10/1/2019 $13.1 $17.5

Modified the tobacco product tax base, such as including vapor products, and increased the tax rate based on the wholesale price. The rate increased from 20% to 43%.

Tobacco 1/2/2020 $5.5 $9.7

Tax Revenue=


$0.0 $0.0

Revenue Total= $20.8 $21.6 Maryland Extended the sunset date for the research and

development tax credit. The new termination date is June 30, 2022. This will result in a revenue reduction of $6.9 million in FY 2022, $2.2 million in

Corporate Income,

Personal Income

7/1/2019 N.A.** N.A.**

17

FY 2023, and $1.7 million in FY 2024. No change in taxpayer liability.

Extended the job creation tax credit through TY 2021. No change in taxpayer liability.

Corporate Income,

Personal Income

7/1/2019 $3.9** $3.9**

Established an income tax credit for qualified workforce housing projects located within opportunity zones. This change was part of a larger reform measure.

Corporate Income,

Personal Income

7/1/2019 -$4.0 -$4.0

Extended the heritage structure rehabilitation (historic revitalization) tax credit program through FY 2024; altered eligibility for small commercial projects to include certain residential units in specified development projects, certain agricultural structures and certain post-World War II structures; and provided an additional tax credit and increased maximum credit amounts for certain commercial rehabilitations within opportunity zones. This will result in a revenue reduction of $10 million in FY 2023 and $11 million in FY 2024. This change was part of a larger reform measure.

Corporate Income,

Personal Income

7/1/2019 N.A. N.A.

Extended and expanded the More Jobs for Marylanders tax credit program for qualifying manufacturing businesses in certain counties or certain qualifying businesses in opportunity zones. This change was part of a larger reform measure. This revenue reduction will exceed $21 million annually from FY 2022 through FY 2030.

Corporate Income,

Personal Income,

Property, and Sales

and Use

6/1/2019 N.A. -$10.4

Expanded the child and dependent care tax credit by increasing and indexing the incomes at which the credit phases out and making the credit refundable for certain taxpayers.

Personal Income

7/1/2019 -$10.9 -$11.3

Required marketplace facilitators to collect and remit the sales and use tax due on retail sales on behalf of marketplace sellers.

Sales and Use

10/1/2019 Potentially significant

Potentially significant

Required short-term rental platforms to collect and remit the sales and use tax on specified short-term rental transactions.

Sales and Use

6/1/2019 Potentially significant

Potentially significant

Exempted cleaning services of commercial and industrial buildings owned by a common ownership community or a retirement community if used for specified purposes.

Sales and Use

4/30/2019 Reduction is


Reduction is


Tax Revenue=

-$14.9 -$25.7 Extended the health insurance provider fee

assessment on specified entities through CY 2023. No change in taxpayer liability.

Fee 10/1/2019 $105.0** $140.2**

Delayed until FY 2022 the exemption from the state's annual filing fee for corporations and business entities who participate in the Maryland

Fee 6/1/2019 N.A. "+$36.0

18

Small Business Retirement Savings Program and Trust. No change in taxpayer liability.

Increased the state 911 fee and applied the fee to each separate outbound call voice channel capacity, instead of each account. The rate is now 50 cents per outbound call voice channel capacity.

Fee 7/1/2019 $53.8 $53.8

Extended the current fee assessed on oil transferred into the state until July 1, 2021. The current rate is 8 cents per barrel and will drop to 5 cents per barrel beginning July 1, 2021.

Fee 7/1/2019 $2.2** $2.9**

Non-Tax Revenue=

$53.8 $53.8 Revenue Total= $38.9 $28.1 Massachusetts

Required the collection and remittance of sales tax by remote marketplace facilitators to align collection policy with Wayfair decision. The threshold is set at $100,000 in sales.

Sales and Use

7/1/2019 $41.7 N.A.

Enacted legislation late December 2018, which took effect July 1, 2019, that applies lodging tax to short-term rentals. The rate is 5.7%.

Other 7/1/2019 $27.5 N.A.

Tax Revenue=


$0.0 $0.0

Revenue Total= $69.2 $0.0 Michigan No significant tax changes. $0.0 $0.0 Tax Revenue=

$0.0 $0.0

Extended various fees' sunset dates. No change in taxpayer liability.

Fee Various $27.8** N.A.**

Non-Tax Revenue=

$0.0 $0.0 Revenue Total= $0.0 $0.0 Minnesota Modified the net operating loss deduction. Corporate

Income TY 2018 $49.5 $21.5

Modified apportionment for mutual fund managers.

Corporate Income

TY 2018 $6.3 $9.0

TCJA Conformity: Conformed to bonus depreciation, 80% addback with five-year recovery. Estimated FY 2019 revenue impact is an increase of $300,000.

Corporate Income

TY 2018 $18.3 $22.6

TCJA Conformity: Conformed to Section 179, 80% addback with five-year recovery. Estimated FY 2019 revenue impact is an increase of $180,000.

Corporate Income

TY 2018 $1.0 $1.1

TCJA Conformity: Conformed to the repeal rollover of publicly traded securities gain into specialized small business companies. The estimated FY 2019 impact is an increase of $50,000.

Corporate Income

TY 2018 $1.3 $0.6

TCJA Conformity: Conformed to the limit on the net interest deduction to 30% of income. The estimated FY 2019 impact is an increase of $1.4 million.

Corporate Income

TY 2018 $31.3 $15.7

TCJA Conformity: Conformed to the repeal of deferred gain on like-kind exchanges. The

Corporate Income

TY 2018 $5.9 $4.2

19

estimated FY 2019 impact is an increase of $200,000.

TCJA Conformity: Conformed to the reduced recovery period for real property.

Corporate Income

TY 2018 -$1.2 -$1.1

TCJA Conformity: Conformed to the limitation on employer provided meals. The estimated FY 2019 impact is an increase of $800,000.

Corporate Income

TY 2018 $16.6 $7.3

TCJA Conformity: Conformed to the limitation on employer provided transportation benefits. The estimated FY 2019 impact is an increase of $600,000.

Corporate Income

TY 2018 $12.5 $5.6

TCJA Conformity: Conformed to the revised treatment of contributions to capital. The estimated FY 2019 impact is an increase of $90,000.

Corporate Income

TY 2018 $1.9 $2.0

TCJA Conformity: Conformed to the modified historic rehabilitation credit.

Corporate Income

TY 2018 $39.9 $16.4

TCJA Conformity: Conformed to the modified treatment of interest for producers of beer, wine and spirits. The estimated FY 2019 impact is a loss of $200,000.

Corporate Income

TY 2018-TY 2019

-$2.9 N.A.

TCJA Conformity: Conformed to the modified limit on excessive compensation. The estimated FY 2019 impact is an increase of $300,000.

Corporate Income

TY 2018 $6.1 $3.6

TCJA Conformity: Conformed to the repeal of exclusion of advanced refunding bonds. The estimated FY 2019 impact is an increase of $200,000.

Corporate Income

TY 2018 $3.8 $2.5

Bipartisan Budget Act: Conformed to special expensing rules for certain films, TV and theatrical productions.

Corporate Income

TY 2017 -$1.0 $250.0

Repealed the sunset date of the provider tax and reauthorized the tax at a reduced rate. The previous rate was 2% and now will be 1.8%.

Healthcare 1/1/2020 $213.0** $659.6**

Altered the statewide property tax. Reduced the levy on commercial industrial property and seasonal recreational residences. (The firstyear impact only represents a partial year impact.)

Property Pay 2020/FY

2021

-$27.5 -$50.0

Increased the school building bond agricultural property tax credit. It will increase from 40% to 50% in 2020, 55% in 2021, 60% in 2022 and to 70% in 2023.

Property Pay 2020/FY

2021

N.A. -$9.8

Reduced the second tier tax rate from 7.05% to 6.8% and modified the starting point of the fourth income bracket tier.

Personal Income

TY 2019 -$216.8 -$144.0

Increased the Working Family Credit and phased-out changes.

Personal Income

TY 2019 -$30.3 -$30.8

Modified the Small Business Investment Tax Credit, also known as the angel tax credit. The

Personal Income

TY 2019 -$10.0 N.A.

20

sunset date was modified to conform to the allocation provided.

Increased the Social Security subtraction. Personal Income

TY 2019 -$4.4 -$4.7

TCJA Conformity: Switched the state's starting point from federal taxable income to federal adjusted gross income.

Personal Income

TY 2019 -$1.8 -$1.8

TCJA Conformity: Conformed to the standard deduction, elimination of personal exemption, and other deduction changes.

Personal Income

TY 2019 -$164.9 -$81.9

TCJA Conformity: Modified indexing/COLA, switched from CPI-U to C-CPI-U.

Personal Income

TY 2019 $12.7 $30.5

TCJA Conformity: Conformed to the repeal of the deduction for alimony payments.

Personal Income

TY 2019 $1.6 $2.3

TCJA Conformity: Conformed to the disallowance of charitable deductions for college athletic seating payments.

Personal Income

TY 2019 $1.9 $1.2

TCJA Conformity: Conformed to the disallowance of the exclusion for qualified moving expense reimbursement.

Personal Income

TY 2019 $5.6 $3.9

TCJA Conformity: Conformed to the adjusted gross income floor and allowed medical expense deduction in excess of 7.5%.

Personal Income

TY 2017 -$13.0 N.A.

TCJA Conformity: Conformed to bonus depreciation, 80% addback with five-year recovery retroactive to TY 2018. Estimated FY 2019 revenue impact is an increase of $400,000.

Personal Income

TY 2018 $8.7 $10.7

TCJA Conformity: Conformed to Section 179, 80% addback with five-year recovery retroactive to TY 2018. Estimated FY 2019 revenue impact is an increase of $560,000.

Personal Income

TY 2018 $2.6 $2.8

TCJA Conformity: Conformed to the disallowance of certain active pass-through losses. The estimated FY 2019 impact is an increase of $4.4 million.

Personal Income

TY 2019 $47.8 $46.3

TCJA Conformity: Conformed to the tax gain on sale of partnership on a look-through basis. The estimated FY 2019 impact is an increase of $200,000.

Personal Income

TY 2019 $1.6 $1.9

TCJA Conformity: Conformed to charitable contributions and foreign taxes accounted for in determining the limit on partners share of loss. The estimated FY 2019 impact is an increase of $100,000.

Personal Income

TY 2018 $1.3 $0.8

TCJA Conformity: Conformed to the limit on net interest deductions to 30% of income. The estimated FY 2019 impact is an increase of $8.1 million.

Personal Income

TY 2019 $89.6 $92.5

21

TCJA Conformity: Conformed to net operating loss modifications. The estimated FY 2019 impact is an increase of $3.2 million.

Personal Income

TY 2019 $35.6 $43.3

TCJA Conformity: Conformed to the repeal of deferred gain on like-kind exchanges. The estimated FY 2019 impact is an increase of $200,000.

Personal Income

TY 2018 $4.7 $3.3

TCJA Conformity: Conformed to the repeal of deduction for employer-provided meals. The estimated FY 2019 impact is an increase of $300,000.

Personal Income

TY 2019 $6.1 $2.7

TCJA Conformity: Conformed to the limitation on employer-provided transportation. The estimated FY 2019 impact is an increase of $200,000.

Personal Income

TY 2019 $2.7 $2.0

TCJA Conformity: Conformed to the modified treatment of interest for producers of beer, wine and spirits. The estimated FY 2019 impact is a loss of $100,000.

Personal Income

TY 2018-TY2019

-$2.4 N.A.

TCJA Conformity: Conformed to the repeal of exclusion of advanced refunding bonds. The estimated FY 2019 impact is an increase of $300,000.

Personal Income

TY 2019 $3.3 $4.8

Bipartisan Budget Act: Conformed to the discharge of indebtedness on principal residence.

Personal Income

TY 2017 -$6.7 N.A.

Bipartisan Budget Act: Conformed to the foreign income exclusion expansion to individuals supporting armed forces in combat zones.

Personal Income

TY 2017 -$1.0 -$0.4

Bipartisan Budget Act: Conformed to special expensing rules for certain films, TV and theatrical productions.

Personal Income

TY 2017 -$1.2 $0.3

Disaster Relief Act & Airports & Airways Extension Act: Conformed to temporary suspension of limits on charitable contributions.

Personal Income

TY 2017 -$1.3 $0.3

Disaster Relief Act & Airports & Airways Extension Act: Conformed to modification and expansion of casualty loss deduction for damage in disaster areas.

Personal Income

TY 2017 -$1.4 N.A.

Provided an upfront exemption for sales by county fair agricultural societies.

Sales and Use

7/1/2019 -$1.2 -$1.5

Tax Revenue=

-$68.9 $285.7 Changed the percent of the June sales tax liability

paid on an accelerated basis from 81.4% to 87.5% for vendors with annual liabilities of more than $250,000 per year for the June 2020 and June 2021 liabilities.

Non-Tax June 2020 $20.1 $0.7

Changed the percent of the June sales tax liability paid on an accelerated basis from 81.4% to 87.5% for vendors with annual liabilities of more than $250,000 per year for the June 2020 and June 2021 liabilities.

Non-Tax June 2020 $2.5 $0.0

22

Enacted a new assisted living with dementia care license fee. The rate is $3,000 plus $100 per bed. This will result in an annual increase of $8.4 million, combined with the new general assisted living license fee, beginning in FY 2022.

Fee 8/1/2021 N.A. N.A.

Enacted a new assisted living license fee. The rate is $2,000 plus $75 per bed. This will result in an annual increase of $8.4 million, combined with the assisted living with dementia care license fee, beginning in FY 2022.

Fee 8/1/2021 N.A. N.A.

Modified fees for drug manufacturers, wholesalers and pharmacists. This estimate also includes the opiate product registration fee, which is $250,000, revenue.

Fee 7/1/2019 $20.9 $20.9

Extended the fertilizer inspection fee sunset date until June 30, 2025. No change in taxpayer liability.

Fee 7/1/2020 N.A.** $1.3**

Increased the vehicle license plate fee from $6 to $8.

Fee 8/1/2019 $2.5 $2.7

Increased the vehicle registration fee from $6 to $7.

Fee 8/1/2019 $1.1 $1.2

Increased the fee on driver's licenses from $17.25 to $21.25.

Fee 8/1/2019 $3.9 N.A.

Enacted a surcharge of $2.25 on vehicle and driver registration fees.

Fee 8/1/2019 $16.5 $18.0

Non-Tax Revenue=

$67.5 $43.5 Revenue Total= -$1.4 $329.2 Mississippi Enacted the Children’s Promise Act, which

authorizes an income tax credit for business enterprises that donate cash to eligible organizations.

Personal Income

1/1/2019 Unknown Unknown

Provided an income tax apportionment formula for medical laboratory services.

Personal Income


Provided a sales tax exemption for the sale of certain school supplies and for purchases made by Junior League of Jackson, Mississippi's Toughest Kids Foundation, MS Gulf Coast Buddy Sports Inc., Biloxi Lions Inc., Lions Sight Foundation of Mississippi and the Goldring/Woldenberg Institute of Southern Jewish Life.

Sales and Use


Tax Revenue=


$0.0 $0.0

Revenue Total= $0.0 $0.0 Missouri HB 126 increased the Pregnancy Resource Center

tax credit from 50% of the amount contributed to 70% for all tax years beginning Jan. 1, 2021. It also removed the cap on the cumulative amount of tax credits claimed beginning FY 2021, and removes the sunset provision. The prior cap was $3.5 million. Additionally, the statutory definition of "pregnancy resource center" was expanded to

Personal Income

1/1/2021 N.A. -$1.4

23

include facilities that offer services under the Alternatives to Abortion Program.

SB 68 modified the Business Facility Tax Credit by amending the definition of New Business Facility Investment to remove the requirement that claimed investments relate to "real and depreciable tangible personal property" and adds that claims can be related to the purchase, lease, or license of software and hardware.

Corporate Income

8/28/2019 -$12.0 -$21.6

The Missouri Works Program currently has a limit of $116 million on the amount of tax credits that may be issued during a fiscal year. For all fiscal years beginning on or after July 1, 2020, SB 68 reduced the limit to $106 million. SB 68 also allowed for an additional $10 million in tax credits for the completion of certain infrastructure projects directly connected with the creation or retention of jobs. This bill also reserved up to 21.5% of such limit for tax credits authorized under this act. For all fiscal years beginning on or after July 1, 2020, this bill established a limit of $75 million on the total amount of withholding taxes that may be authorized for retention by qualified companies with more than 50 employees. Withholding retention authorized for qualified companies with less than 50 employees are exempted from this limit. SB 68 also allowed tax credits to be awarded to a qualified manufacturing company that makes a manufacturing capital investment of at least $500 million within three years from the execution of the agreement. Such credits must be issued no earlier than Jan. 1, 2023, and may be issued each year for a period of five years. The maximum amount of credits that a qualified manufacturing company may receive must not exceed $5 million per calendar year. A qualified manufacturing company may qualify for an additional five-year period if the company makes an additional manufacturing capital investment of at least $250 million within five years. This change was part of a larger reform measure.

Corporate Income

7/1/2020 -$22.8 -$32.8

Current law provides for a tax credit for banking institutions to compensate for franchise taxes paid by banking institutions. Because the corporate franchise tax was repealed on Jan. 1, 2016, for all tax years beginning on or after Jan. 1, 2020, SB 174 disallowed the tax credit designed to compensate for the franchise tax. This change is estimated to

Corporate Income

1/1/2020 N.A. $3.5

24

bring in between $2.7 million and $4.3 million in FY 2021.

SB 180 modified the Missouri Works program by creating an additional tax credit. This tax credit is for the expansion or improvement of a military base or installation that leads to an increase of 10 or more military/civilian support personnel with:

• An average wage of at least 90% of the county average wage

• Are offered health insurance benefits with an entity of the Department of Defense paying at least 50% of the premiums

• And investment in real or tangible personal property at a base or installation expressly for the purpose of serving a new or expanded military activity unit.

The new credit may be substituted for any other tax credit offered under the Missouri Works program. The estimated revenue impacts could exceed -$5,493,047 for FY 2020 and FY 2021.

Corporate Income

8/28/2019 -$5.5 -$5.5

Tax Revenue=

-$40.3 -$57.8 HB 499 increased specified motor vehicle and

trailer registration fees under Section 136.055, RSMo. This includes the following: 1) Licenses increase from $3.50 to $6 for annual and from $7 to $12 biennial. 2) Transfer of title increases from $2.50 to $6. 3) Instruction permits, nondriver's, chauffeur's, operator's and driver's licenses increase from $2.50 to $6 (three years or less) and from $5 to $12 (exceeds three years). 4) Notice of lien processing increases from $2.50 to $6. 5) Notary fee or electronic transmission per processing from $0 to $2. The revenue figures depend on whether fee increases on transactions at all fee offices statewide (176 contracted license offices) should be considered State Revenue Derived from Highway Users (SRHU) subject to the distribution requirements set out in Art. IV, Sec. 30(b)1, Mo. Const. The revenue figures only contain additional fee revenue for transactions at the Central Office and online. This figure could grow up to $22.5 million for FY 2020 and $27 million for FY 2021 for all transactions statewide.

Fee 8/28/2019 $2.3 $2.7

SB 133 increased the fees for several programs and licenses within the Department of Agriculture Plant Industries Division. This act also requires the Department of Agriculture to convene a work group every five years to review all fees charged by the department and submit a report to the

Fee 8/28/2019 $1.7 $1.7

25

General Assembly on any recommended changes to the fees. This change is estimated to bring in between $1,650,701 to $1,842,389.

Non-Tax Revenue=

$4.0 $4.5 Revenue Total= -$36.3 -$53.3 Montana Enacted a film tax credit program. (HB 293) Personal

Income 7/1/2019 N.A. -$2.0

Extended the termination date to Dec. 31, 2025, for the qualified endowment tax credit. No change in taxpayer liability. (SB111)

Personal Income

1/1/2019 N.A. "-$3.2

Authorized sports wagering through the state lottery. (HB 725)

Other 5/3/2019 $3.8 $4.3

Tax Revenue=

$3.8 $2.3 Modified certain licensing fees for investment-

related advisors. (HB 694) Fee 5/8/2019 $7.8 $8.0

Non-Tax Revenue=

$7.8 $8.0 Revenue Total= $11.5 $10.3 Nebraska No significant tax and non-tax revenue changes. $0.0 $0.0 Nevada Permanently repealed the provisions, established

in the 2015 session, requiring the tax rates for the Modified Business Tax (MBT) to be prospectively reduced if the actual collections from the MBT, the Commerce Tax, and Branch Bank Excise Tax and applicable tax credits are more than 4% above the Economic Forum's May forecast in an even-numbered fiscal year. As a result of this action, MBT tax rate reductions scheduled to become effective beginning in FY 2020 and permanently going forward will not occur. No change in taxpayer liability.

Other 7/1/2019 $48.2** $50.0**

Permanently eliminated the 10% increase in the amount of tax credits authorized per fiscal year for Educational Choice Scholarship Tax Credit Program, established in the 2015 legislative session. This program allows taxpayers who make qualified donations to certain scholarship organizations to receive a dollar-for-dollar tax credit against the taxpayer's liability for the Modified Business Tax. No change in taxpayer liability.

Other 7/1/2019 $8.0** $9.5**

Authorized an additional amount of tax credits for the Educational Choice Scholarship Tax Credit Program for FY 2020 and FY 2021 only.

Other 7/1/2019 -$4.8 -$4.8

Authorized $10 million per fiscal year for a total of $40 million in transferable tax credits that can be awarded to persons who develop affordable housing projects in Nevada over the four years of the pilot program, which can be used against the Modified Business Tax, Gaming Percentage Fee Tax or the Insurance Premium Tax. Program is

Other 7/1/2019 N.A. -$10.0

26

effective beginning in FY 2020 but first tax credits estimated to be taken in FY 2021.

Established a new provision that requires a marketplace facilitator, defined as a person who facilitates the sale of tangible personal property by a marketplace facilitator in or into the state of Nevada, to collect and remit sales and use taxes on certain sales facilitated on behalf of the marketplace seller.

Sales and Use

10/1/2019 $16.5 $22.0

Established that vapor products, including e-cigarettes and their components, and alternative nicotine products are subject to the existing 30% wholesale excise tax on other tobacco products.

Tobacco 1/1/2020 $3.7 $7.9

Tax Revenue=


$0.0 $0.0

Revenue Total= $15.4 $15.1 New Hampshire

Phased in business profits tax rate decrease from 7.9% to 7.7% (HB 517, 2017 session). Tax rate could change for taxable periods ending on or after Dec. 31, 2021, if certain triggers are met as contained in Chapter 346, Laws of 2019.

Corporate Income

1/1/2019 -$10.3 -$11.8

Phased in business enterprise tax rate decrease from 0.675% to 0.60% (HB 517, 2017 session). Tax rate could change for taxable periods ending on or after Dec. 31, 2021, if certain triggers are met as contained in Chapter 346, Laws of 2019.

Corporate Income

1/1/2019 -$27.3 -$31.4

Enacted IRC conformity measures, including GILTI. Corporate Income

1/1/2020 $22.2 $31.3

Enacted market-based apportionment. Corporate Income

1/1/2021 N.A. $10.0

Expanded the Communications Service Tax base to include prepaid wireless and VoIP.

Other 1/1/2020 $1.5 $2.5

Legalized sports betting. Other 7/12/2019 N.A. $10.0 Added e-cigarettes to definition of tobacco (closed

cartridges or containers of liquid containing nicotine). Levied a 30 cents per milliliter tax on the volume of liquid. Also, levied a 8% tax of the wholesale price open containers of liquid or other substances containing nicotine. This is a combined estimate.

Tobacco 1/1/2020 N.A. $5.7

Tax Revenue=

-$13.9 $16.3 Water resources funds (combines a number of

environmental water fees into a single fund, increasing many of the fees).

Fee 7/1/2019 $2.3 $2.3

Non-Tax Revenue=

$2.3 $2.3 Revenue Total= -$11.6 $18.6 New Jersey Increased the HMO assessment by 1%. Healthcare 7/1/2020 N.A. $66.0 Lowered the sales tax rate on medical cannabis

from 6.625% to 4%. This change was part of a larger reform measure.

Sales and Use

7/1/2020 N.A. -$1.0

27

Changed the tax structure on container e-liquid. Previously, it was taxed at 10 cents per mL and now container e-liquid is taxed at 10%.

Tobacco 11/1/2019 Indeter-minate

Indeter-minate

See Appendix D for property tax changes. Property Tax Revenue=

$0.0 $65.0

Increased foreclosure mediation program fees from $50 to $155.

Fee 11/1/2019 $3.1 $3.1

Modified commercial recording fees. Fee 6/30/2019 $25.0 N.A. Non-Tax Revenue=

$28.1 $3.1

Revenue Total= $28.1 $68.1 New Mexico Enacted a requirement for combined reporting of

corporate income. This change was part of a larger reform measure.

Corporate Income

1/1/2020 N.A. N.A.

Switched to market-based sourcing. This change was part of a larger reform measure.

Corporate Income

1/1/2020 N.A. N.A.

Increased the cap on annual payouts for the film tax credit program and provided an additional 5% credit for productions in rural areas.

Corporate Income,

Personal Income

7/1/2019 -$60.0 -$60.0

Imposed a daily surcharge on certain types of health care facilities. This tax will sunset Jan. 1, 2023.

Healthcare 7/1/2019 $39.0 $53.0

Increased the state's Working Families Tax Credit. It previously was 10% of the EITC and is now 17% of the EITC. This change was part of a larger reform measure.

Personal Income

1/1/2019 -$37.0 -$39.0

Created a new dependent deduction of $4,000 for every dependent beyond the first. This change was part of a larger reform measure.

Personal Income

1/1/2019 -$26.0 -$27.0

Added a new top tax rate and bracket. Single filers earning over $210,000, married filers filing joint/heads of households earning over $310,000, and married filers filing single returns earning over $157,500 will now be taxed at a rate of 5.9% rather than 4.9%. This change was part of a larger reform measure.

Personal Income

1/1/2021 N.A. $20.0

Increased the motor vehicle excise tax rate from 3% to 4%. This change was part of a larger reform measure.

Other 7/1/2019 $52.0 $53.0

Applied state sales tax (e.g., New Mexico's gross receipts tax) to internet sales. Included marketplace collection requirements in this change. This change was part of a larger reform measure.

Sales and Use

7/1/2019 $43.0 $44.0

Moved to destination sourcing of tangibles, and applied local sales tax (e.g., local gross receipts tax) to internet sales. Included marketplace collection requirements in this change. This change was part of a larger reform measure.

Sales and Use

7/1/2021 N.A. N.A.

28

Applied state sales tax (e.g., New Mexico's gross receipts tax) and the governmental gross receipts tax (GGRT) to nonprofit and government hospitals. The GRT rate is 5.125% for nonprofit hospitals, and GGRT rate is 5% for government hospitals. These entities were previously exempt. This change was part of a larger reform measure.

Sales and Use

7/1/2019 $93.0 $96.0

Expanded the eligibility for the high-wage jobs tax credit against the state's sales tax and extended the sunset date to July 1, 2029. This is expected to bring in an additional $3 million to $10 million in FY 2021.

Sales and Use

7/1/2020 N.A. $6.5

Extended the deduction for certain directed energy and satellite receipts through Jan. 1, 2031. No change in taxpayer liability.

Sales and Use

7/1/2020 N.A.** $1.0**

Increased the tax rate on cigarettes from $1.66/pack to $2/pack. This change was part of a larger reform measure.

Tobacco 7/1/2019 $13.0 $12.0

Modified the tax on cigars. Previously, cigars were taxed at 25% of the wholesale price. Cigars will now be taxed at 50 cents per cigar. This change was part of a larger reform measure.

Tobacco 7/1/2019 -$3.0 -$3.0

Applied the tobacco products tax to e-liquids and e-cigarette cartridges. There will now be a 12.5% tax on the wholesale price of e-liquids and a tax of 50 cents per closed system cartridge. This change was part of a larger reform measure.

Tobacco 7/1/2019 $6.0 $7.0

Tax Revenue=

$120.0 $162.5 Imposed a fee on applications for drilling permits,

well-injection permits, hearings and certain administrative approvals. The fees range from $150 to $10,000, depending on the type of application.

Fee 7/1/2019 $1.9 $1.9

Non-Tax Revenue=

$1.9 $1.9 Revenue Total= $121.9 $164.4 New York Enacted a new tax on opioids of a quarter of a cent

($0.0025) to 1 ½ cents ($0.015) per morphine milligram equivalent.

Healthcare 7/1/2019 $66.0 $100.0

Increased the real estate transfer tax within New York City only. The increase ranges from 0.25% to 2.9%.

Other 7/1/2019 $243.0 $378.0

Enacted a new supplemental auto rental tax. This will increase the rate from 6% to 12%.

Other 6/1/2019 $27.0 $36.0

Extended the surcharge on higher incomes. This will result in an increase of $5.4 billion once it is fully effective. This change will sunset Dec. 31, 2024. No change in taxpayer liability.

Personal Income

1/1/2020 $771.0** $3,560.0**

Enacted a limit on charitable deductions for high incomes.

Personal Income

1/1/2020 N.A. $86.0

29

Created a tax credit for employers that provide child care. It is estimated to result a in a loss of $1 million once it is fully effective.

Personal Income

1/1/2020 N.A. N.A.

Required non-resident gambling winnings to be included in New York state income.

Personal Income

1/1/2020 N.A. $1.0

Created a tax credit for hiring an employee in recovery from drug addiction. It is estimated to result a in a loss of $2 million once it is fully effective.

Personal Income

1/1/2020 N.A. N.A.

Extended the tax credit for hiring workers with disabilities until Dec. 31, 2022. No change in taxpayer liability.

Personal Income,

Corporate Income

1/1/2020 N.A.** -$4.0**

Extended the clean heating fuel tax credit until Dec. 31, 2022. This will result in a loss of $6 million fully effective. No change in taxpayer liability.

Personal Income,

Corporate Income

1/1/2020 N.A. N.A.

See Appendix D for property tax changes. Property Required marketplace platforms to collect tax on

behalf of businesses using the marketplace platform. Third-party sellers do not have to have nexus within the state, as long as the marketplace platform has nexus, they will be required to collect taxes on all transactions.

Sales and Use

6/1/2019 $170.0 $250.0

Eliminated the ESCO (energy service company) tax exemption.

Sales and Use

6/1/2019 $90.0 $120.0

Enacted a retail tax of 20% on vapor products. Tobacco 12/1/2019 $2.0 $19.0 Tax Revenue=

$598.0 $990.0

Increased the criminal history search fee from $65 to $95.

Fee 4/12/2019 $66.0 $66.0

Extended the waste tire fee for three years. No change in taxpayer liability.

Fee 1/1/2020 $18.0** $24.0**

Authorized the Department of Transportation to impose fiber optic right-of-way fees.

Fee 4/12/2019 $15.0 $30.0

Increased the bus and limo inspection fee from $20 to $85.

Fee 10/1/2019 $1.0 $2.0

Non-Tax Revenue=

$82.0 $98.0 Revenue Total= $680.0 $1,088.0 North Carolina

Extended the historic rehabilitation credit, resulting in no change in taxpayer liability. Also reinstated the mill rehabilitation credit for projects meeting certain requirements, which is not estimated to have a fiscal impact until FY 2022.

Corporate Income

1/1/2020 N.A.** -$4.5**

Enacted market-based sourcing. Corporate Income

1/1/2020 $3.0 $7.5

Increased the state's standard deduction. Personal Income

1/1/2020 -$79.3 -$176.9

Authorized taxpayers ages 70.5+ to allow rollover distributions to nonprofits tax-free.

Personal Income

1/1/2020 -$1.0 -$1.0

30

Enacted marketplace facilitator collection legislation.

Sales and Use

2/1/2020 $65.0 $135.2

Extended motorsports exemptions until Jan. 1, 2024. No change in taxpayer liability.

Sales and Use

1/1/2020 -$2.9** -$3.0**

Extended qualifying airlines exemption until Jan. 1, 2024. No change in taxpayer liability.

Sales and Use

1/1/2020 N.A.** -$5.4**

Tax Revenue=


$0.0 $0.0

Revenue Total= -$12.3 -$35.2 North Dakota

Legislation enacted by the 2015 Legislative Assembly allows taxpayers to elect an alternate income tax apportionment method. The legislation allows a double weighted sales factor apportionment election for tax year 2016 and 2017, a 75% weighted sales factor apportionment election for tax year 2018, and a single sales factor apportionment election for tax years 2019 and forward.

Corporate Income

TY 2019 -$44.3 -$44.3

Provided a cumulative amount of $1 million in credits per year to individual and corporate income taxpayers that purchase manufacturing machinery and equipment for purposes of automating a manufacturing process to improve job quality or increase productivity. The credit is equal to 20% of the amount expended on manufacturing machinery and equipment in the taxable year. This tax change will sunset Dec. 31, 2022. This is a combined estimate.

Corporate Income,

Personal Income

1/1/2019 -$1.0 -$1.0

Created the Reinsurance Association of North Dakota, sets up an invisible reinsurance pool for the state's individual health insurance market, and allows companies to take the assessment created by the bill as a premium tax credit. This is a temporary tax change and will sunset Dec. 31, 2021.

Other 4/19/2019 -$15.9 -$15.9

Provided an income tax deduction for individuals, including their survivors, who receive military retirement benefits for service in the armed forces of the United States, a reserve component of the armed forces or the National Guard.

Personal Income

1/1/2019 -$1.5 -$1.5

Provided an income tax deduction for the amount of social security benefits subject to federal income tax for single individuals with federal adjusted gross income of $50,000 or less and married couples filing jointly with federal adjusted gross income of $100,000 or less.

Personal Income

1/1/2019 -$3.7 -$3.7

Expanded the income tax credit for contributions to nonprofit private institutions of primary, secondary or higher education to allow contributions provided by an individual directly to

Personal Income


31

a nonprofit private educational institution to qualify for the credit. Previously, individuals only could receive a credit claimed at the pass-through entity level and passed through to the individual in proportion to the individual's interest in the pass-through entity. The bill also increased one of the three limiting factors on the amount of the credit that may be claimed from an amount not to exceed 20% of a taxpayer's income to an amount not to exceed 25% of a taxpayer's income. The fiscal impact cannot be determined but some estimates indicate the potential for a substantial impact. This tax change will sunset Dec. 31, 2020.

Provided a sales and use tax exemption for materials used to construct a qualified straddle plant, a qualified fractionator or qualified associated infrastructure. The bill also extends from June 30, 2019, to June 30, 2023, the deadline by which the owner of a fertilizer or chemical processing plant must receive an air quality permit, or notice that the air quality permit application is complete, from the Department of Environmental Quality to qualify for a sales and use tax exemption on materials used to construct the fertilizer or chemical processing facility. The fiscal impact for both exemptions cannot be determined but some estimates indicate the potential for a substantial impact.

Sales and Use


Tax Revenue=


$0.0 $0.0

Revenue Total= -$66.3 -$66.3 Ohio Increased the motor fuel and diesel tax rates. The

motor fuel tax rate increased from 28 cents per gallon to 38 ½ cents per gallon. The diesel tax rate increased from 28 cents per gallon to 47 cents per gallon.

Motor Fuel 7/1/2019 $865.0 $865.0

Limited the financial institutions tax base. Equity capital in excess of 14% of total assets is now excluded from the base.

Other 1/1/2020 -$10.0 -$10.0

Made changes to the job retention tax credit. Other 10/17/2019 -$1.5 -$5.8 Modified personal income tax brackets and

lowered the top bracket from 4.997% to 4.797%. (HB 166) This tax change was part of a larger reform measure.

Personal Income

1/1/2019 -$518.0 -$350.0

Enhanced the state's earned income tax credit. This tax change was part of a larger reform measure.

Personal Income

1/1/2019 -$38.0 -$38.0

Enacted a tax credit for investments in Opportunity Zones.

Personal Income

1/1/2019 N.A. -$31.0

32

Enacted a tax credit for lead abatement. Personal Income

1/1/2019 N.A. -$5.0

Repealed two personal income tax credits. This tax change was part of a larger reform measure.

Personal Income

1/1/2019 $8.3 $8.6

Modified use tax nexus. Sales and Use

7/18/2019 $121.0 $210.0

Repealed two sales and use tax exemptions. Sales and Use

10/1/2019 $4.2 $6.3

Expanded the manufacturers exemption. Sales and Use

10/1/2019 -$1.4 -$2.2

Enacted a 10 cents/mL tax on vapor products. Tobacco 10/1/2019 $4.3 $6.5 Increased the purchase age for cigarettes to 21

years old. This results in a tax base reduction. Tobacco 10/17/2019 -$18.1 -$24.3

Tax Revenue=

$415.8 $630.1 Increased hunting and fishing license fees. Fee Various $4.0 $4.0 Non-Tax Revenue=

$4.0 $4.0

Revenue Total= $419.8 $634.1 Oklahoma Authorized certain refundable tax credits to be

carried forward. Personal

Income 7/1/2019 $4.1 $0.0

Enacted an income tax credit for qualified software or cybersecurity employees. This credit will sunset Dec. 31, 2029.

Personal Income

11/1/2019 N.A. -$2.6

Expanded the credit for qualified employers and engineers in the vehicle manufacturing industry.

Personal Income

11/1/2019 Unknown Negative

Unknown Negative

Enacted legislation providing "cleanup" language to further implement the Wayfair decision.

Sales and Use

11/1/2019 Unknown Positive

Unknown Positive

Expanded the exemption for durable medical and mobility equipment.

Sales and Use

7/1/2019 -$1.3 -$1.8

Tax Revenue=

$2.8 -$4.4 Increased used tire recycling fees. Fee 7/1/2019 $3.4 N.A. Non-Tax Revenue=

$3.4 $0.0

Revenue Total= $6.1 -$4.4 Oregon Extended existing taxes. No change in taxpayer

liability. Healthcare 1/1/2020 N.A.** $334.5**

Enacted a Corporate Activity Tax of 0.57%. Other 1/1/2020 $290.0 $1,306.0 Enacted a payroll tax to fund paid family medical

leave. This will take effect Jan. 1, 2022. Other 1/1/2022 N.A. N.A.

Increased the 911 tax. Other 1/1/2020 $4.0 $10.6 Modified the weight-mile tax. Other 10/1/2019 -$3.5 -$3.8 Extended the forest products harvest tax. No

change in taxpayer liability. Other 1/1/2020 $2.0** $8.7**

Enacted personal income tax rate reductions across several brackets.

Personal Income

1/1/2020 -$96.0 -$327.0

Extended sunset date of tax credits. No change in taxpayer liability.

Personal Income

1/1/2020 N.A.** -$70.5**

See Appendix D for property tax changes. Property Tax Revenue=

$194.5 $985.8

Modified court fees. Fee 10/1/2019 $1.3 $1.8 Modified boat registration fees. Fee 1/1/2020 $1.3 $2.6

33

Non-Tax Revenue=

$2.6 $4.4 Revenue Total= $197.1 $990.2 Pennsylvania Expanded the manufacturing innovation and

reinvestment deduction. Corporate

Income 1/1/2020 -$1.0 -$4.2

Extended the sunset date for a 2% assessment on table games revenue. The assessment will now sunset on Aug. 1, 2021. No change in taxpayer liability.

Other 7/1/2019 $17.9** $19.6**

Expanded the Keystone Opportunity Zones by adding additional zones, which allows for the 10-year abatement.

Other 7/1/2020 N.A. -$7.0

Modified the inheritance tax. Eliminated the tax on transfers from a parent to their child, age 21 or younger.

Other 1/1/2020 -$3.0 -$12.5

Enacted increases to various tax credits, totaling to $66 million. One tax credit program was eliminated, which had a cap of $10.1 million.

Other Various N.A. N.A.

Enacted an exemption for the sales of food and beverages sold by volunteer fire organizations and nonprofit organizations exclusively supporting youth development centers.

Sales and Use

1/1/2020 -$0.9 -$2.2

Enacted an exemption on sales of animal housing facilities for poultry and livestock.

Sales and Use

1/1/2020 -$1.7 -$4.0

Expanded the exemption for purchases in Strategic Development Areas to include items such as laptop computers, cell phones and media storage.

Sales and Use

1/1/2020 -$2.8 -$2.8

Tax Revenue=


$0.0 $0.0

Revenue Total= -$9.4 -$32.7 Rhode Island Authorized online sports betting. Other 9/15/2019 $17.2 N.A. Increased the beverage container tax by 4 cents

per case. Other 7/1/2019 $3.1 N.A.

Included digital downloads in the sales and use tax base.

Sales and Use

10/1/2019 $2.6 N.A.

Required remote sellers to collect sales and use tax.

Sales and Use

7/1/2019 $11.5 N.A.

Tax Revenue=

$34.4 $0.0 Modified and increased the mortgage and debt

collector license fees. Fee 7/1/2019 $1.8 N.A.

Non-Tax Revenue=

$1.8 $0.0 Revenue Total= $36.2 $0.0 South Carolina

Increased motor fuel tax rates by 2 cents for FY 2020 and FY 2021. The rate will increase to 22 cents/gallon July 1, 2019, and to 24 cents July 1, 2020. This change was part of a larger reform measure.

Motor Fuel 7/1/2019; 7/1/2020

$80.3 $82.6

Extended the sunset date for the tax credit for purchases of geothermal machinery and equipment. No change in taxpayer liability.

Personal Income

5/16/2019 -$2.0** -$2.0**

34

Enacted a nonrefundable port transportation credit.

Personal Income

5/13/2019 -$1.0 -$2.0

Raised the maximum aggregate tax credit limit from $6 million to $9 million for contributions to the Industry Partnership Fund.

Personal Income

3/28/2019 -$1.0 -$1.0

Enacted a tax credit of 50% of cash donation to a community development corporation of a CDFI.

Personal Income

5/16/2019 -$1.5 -$1.5

Enacted a tax credit of 25% of the cost of constructing, purchasing or leasing solar energy property.

Personal Income

5/16/2019 -$2.5 -$2.5

Tax Revenue=


$0.0 $0.0

Revenue Total= $74.3 $75.6 South Dakota

No significant tax and non-tax revenue changes. $0.0 $0.0

Tennessee Authorized consumption of alcoholic beverages in a sports authority facility located on the campus of a public institution of higher education. This resulted in a tax base expansion.

Alcohol 4/8/2019 $1.0 $1.0

Enacted sports betting through the Tennessee Sports Gaming Act. The tax rate will be 20%.

Other 7/1/2019 $20.0 $40.0

Removed amusement tax on dues, fees or other charges paid to any person principally engaged in offering services or facilities for the development or preservation of physical fitness through exercise or other conditioning.

Other 7/1/2019 -$6.4 -$6.4

Tax Revenue=

$14.6 $34.6 Removed the $180 expunction fee on certain

criminal offenses. Fee 1/1/2019 -$1.0 -$1.0

Non-Tax Revenue=

-$1.0 -$1.0 Revenue Total= $13.6 $33.6 Texas Enacted a franchise tax exemption for the costs of

aerospace goods and services sold to the federal government. (HB 1607)

Other 1/1/2020 -$4.2 -$8.5

See Appendix D for property tax changes. Property Expanded the sales tax base to require

marketplace providers to collect and remit taxes for third-party sellers. (HB 1525)

Sales and Use

10/1/2019 $242.5 $307.5

Increased the legal age to purchase tobacco from 18 to 21. This resulted in a tobacco tax base reduction. (SB 21)

Tobacco 9/1/2019 -$3.3 -$5.5

Tax Revenue=

$235.0 $293.5 Expanded enforcement efforts to collect sales

taxes on certain vehicles purchased outside the state by Texas residents. (HB 1543)

Non-Tax 9/1/2019 $1.9 $4.7

Increased the maximum civil penalty for violation of laws protecting drinking water and public water supplies. The penalty increased from $1,000 to $5,000 per violation. (SB 530)

Fee 9/1/2019 $1.3 $1.6

35

Eliminated surcharges assessed on drivers convicted of certain driving offenses. Also, increased other driving-related fees and fines. (HB 2048)

Fee 9/1/2019 -$6.1 -$6.1

Non-Tax Revenue=

-$2.9 $0.2 Revenue Total= $232.1 $293.7 Utah Enacted a radioactive waste tax on certain waste. Corporate

Income 7/1/2019 $2.6 $2.6

Eliminated the royalty deduction for certain captive insurance companies.

Corporate Income

1/1/2019 $1.0 $1.0

Authorized FDIC premium deductions. Corporate Income

1/1/2019 $2.0 $2.0

Enacted legislation for when a marketplace facilitator or seller is required to collect sales tax.

Sales and Use

7/1/2019 N.A. $6.5

Tax Revenue=


$0.0 $0.0

Revenue Total= $5.6 $12.1 Vermont Altered the liquor tax by changing it from a

graduated rate to a flat 5% tax. Revenues are expected to be made up through the markup on Liquor Control.

Alcohol 7/1/2019 N.A. N.A.

Enacted an increase to the estate tax exemption over the course of two years. The current exemption is $2.75 million and will rise to $4.25 million on Jan. 1, 2020, and again to $5 million in 2021.

Other 1/1/2020 $0.0 -$4.5

Expanded the property transfer tax base. The state's property transfer tax will now apply to changes in controlling interest, not only to a change in deed.

Other 7/1/2019 $1.7 $2.6

Expanded the rooms tax base to include online travel agents. Online travel agents will be required to include booking fees in the rooms tax calculation. This change also included short-term rentals in the base expansion.

Other 7/1/2019 $3.7 $4.2

Modified the lands gain tax. Significantly reduced the number of sales that would be subject to tax by limiting the base to only subdivided land parcels bought and sold within six years.

Other 1/1/2020 -$0.8 -$1.6

Modified the existing capital gains exclusion by including a limit of up to $875,000 in capital gains. Now, a 40% exclusion on capital gains from sales of farms, businesses or investment properties is allowed on up to $875,000 in capital gains.

Personal Income

7/1/2019 $2.2 $4.4

Enacted a new medical expense deduction. Medical expenses that are in excess of the state's standard deduction and personal exemption are allowed. The deduction is limited for continuing care retirement communities.

Personal Income

7/1/2019 -$2.1 -$2.1

36

Required marketplace facilitators to collect and remit tax on behalf of third-party sellers.

Sales and Use

6/1/2019 $13.4 $13.9

Raised the purchasing age for tobacco products to 21. This results in a tax base reduction.

Tobacco 7/1/2019 "-$0.5 "-$0.5

Enacted a tax on e-cigarettes and paraphernalia at a rate of 92% of the wholesale price.

Tobacco 7/1/2019 $0.9 $1.0

Tax Revenue=

$19.0 $17.9 Increased the insurance producer apportionment

fee and switched it from a biennial fee schedule to an annual scheduling beginning FY 2022. The fee will also drop to $60 annually beginning in FY 2022.

Fee 7/1/2019 $3.0 $28.2

Increased the license fees for adjusters and appraisers.

Fee 7/1/2019 $2.0 $2.0

Increased the broker dealer agent fee. Fee 7/1/2019 $3.3 $3.3 Non-Tax Revenue=

$8.3 $33.5

Revenue Total= $27.3 $51.4 Virginia Expanded the corporate income tax subtraction

for subpart F income so that is also applies to GILTI. This change was part of a larger reform measure.

Corporate Income

TY 2018 -$5.4 -$5.5

Authorized an individual and corporate income tax deduction for 20% of the amount of business interest that is disallowed as a deduction for federal income tax purposes. This change is part of a larger reform measure.

Corporate Income,

Personal Income

TY 2019 -$18.0 -$18.7

Enacted a deduction for real and personal property taxes imposed by Virginia or any other taxing jurisdiction not otherwise deducted solely on account of the $10,000 annual limitation imposed on the federal deduction for state and local taxes (SALT) paid. This change was part of a larger reform measure.

Personal Income

TY 2019 -$55.6 -$41.7

Increased the standard deduction from $3,000 to $4,500 for individuals and from $6,000 to $9,000 for married/joint returns. This change was part of a larger reform measure and will sunset for TY 2026.

Personal Income

TY 2019 -$359.7 -$235.7

Decoupled from the Tax Cuts and Jobs Act's suspension of the Pease limitation. This change was part of a larger reform measure.

Personal Income

TY 2019 $107.5 $73.3

Enacted legislation conforming to provisions in the Tax Cuts and Jobs Act. This change was part of a larger reform measure.

Personal Income

TY 2018 $611.1 $653.7

Enacted a one-time refund up to $110 (single) / $220 (joint) based on 2018 returns filed by July 1, 2019. The refund is to be paid in October 2019. This change is temporary and was part of a larger reform measure.

Personal Income

October 2019

-$419.4 N.A.

37

Required marketplace facilitators and out-of-state dealers to register for the collection of the Retail Sales and Use Tax if annual sales to Virginia customers made or facilitated by them exceed either $100,000 in gross revenue or 200 transactions. In combination with local revenue, this change is expected to bring in $155 million in FY 2020 and $175 million in FY 2021.

Sales and Use

7/1/2019 $82.5 $93.1

Modified the categories of products that are subject to a reduced Retail Sales and Use Tax rate to include "essential personal hygiene products," in addition to "food purchased for human consumption." They will now be taxed at a rate of 2.5%. In combination with local revenue, this change is expected to result in a decrease of $1.9 million in FY 2020 and a decrease of $4.6 million in FY 2021.

Sales and Use

1/1/2020 -$1.2 -$2.9

Tax Revenue=

-$58.2 $515.6 Increased the threshold for remittance of June

accelerated sales tax from $4 million to $10 million in annual taxable sales in June 2020.

Non-Tax 6/1/2020 -$27.2 $0.0

Non-Tax Revenue=

-$27.2 $0.0 Revenue Total= -$85.4 $515.6 Washington Modified the real estate excise tax rate and made

it a graduated rate. Other 1/1/2020 $70.3 $173.2

Modified qualifications for those eligible to receive the international investment management services business and occupation preferential tax rate.

Other 7/1/2019 $26.8 $30.7

Imposed an additional 1.2% business and occupation tax on specified financial institutions.

Other 1/1/2020 $36.6 $96.6

Increased preferential B&O tax rate for certain travel agents and tour operators.

Other 7/1/2019 $2.2 $2.4

Established an administrative penalty equal to $100 per megawatt-hour of electric generation, multiplied by certain source-specific multipliers, for noncompliance with the coal phaseout and GHG neutral standards; extended the expiration date for a sales and use tax exemption for certain alternative energy machinery and equipment from Jan. 1, 2020, to Jan. 1, 2030; reinstated an expired sales and use tax exemption for solar energy systems smaller than 500 kilowatts AC in size. This was part of a larger reform measure.

Other 5/7/2019 -$4.8 -$6.0

Provided B&O tax exemption to county public hospital operated by state agency.

Other 7/1/2019 -$6.8 -$7.7

Established the Workforce Education Investment Account and established a business and occupation tax surcharge on service and other

Other 7/28/2018 $113.1 $266.9

38

activities from a select set of businesses to fund the account.

Modified the Hazardous Substance Tax (HST) by changing the tax rate of 0.7% on the wholesale value applied to most petroleum products to a rate of $1.09 per barrel.

Other 7/1/2019 $129.3 $168.0

Modified the qualifying income thresholds for the property tax exemption and deferral programs for low-income senior citizens, individuals with disabilities and veterans beginning with taxes levied for collection in 2020. The disability rating qualification for the disabled veterans’ property tax exemption program is adjusted from 100% to 80%.

Property 7/28/2019 -$6.9 -$13.3

Reauthorized and expanded the sales and use tax exemption for the purchase of standard financial information by qualifying investment management companies and their affiliates.

Sales and Use

7/28/2019 $0.9 $1.0

Changed nonresident sales tax exemption to remittance.

Sales and Use

7/1/2019 $25.4 $28.4

Modified the nexus threshold for marketplace facilitators and remote sellers to align state law with Wayfair decision. The option for marketplace facilitators and remote sellers to comply with notice and reporting requirements and not collect tax is eliminated. The import tax exemption is limited to only import sales involving a parent company and a wholly owned subsidiary and the wholesale sale of unroasted coffee beans. Certain provisions under the Streamlined Sales and Use Tax Agreement are clarified and the related local jurisdiction mitigation payments are repealed.

Sales and Use

3/14/2019 $41.6 $74.2

Prohibited sale of cigarettes, tobacco products and vapor products to persons under 21 years. This results in a tax base reduction.

Tobacco 1/1/2020 -$2.7 -$6.1

Established a wholesale tax on vapor products by taxing accessible containers of liquid solution that are larger than 5 mL at 9 cents/mL of solution and all other vapor products at a rate of 27 cents/mL of solution.

Tobacco 1/1/2020 $6.4 $12.5

Tax Revenue=


$0.0 $0.0

Revenue Total= $431.3 $820.8 West Virginia

Enacted a temporary, additional tax of 0.13% on acute care hospitals. This tax is set to expire June 30, 2021.

Healthcare 7/1/2019 $4.9 $5.4

Eliminated severance taxes on limestone and sandstone.

Other 7/1/2019 -$1.1 -$1.2

39

Reduced the severance tax on steam coal sold directly to electric power generators. The rate will be reduced over a three-year period.

Other 7/1/2019 -$20.6 -$40.2

Enacted a business and occupation tax exemption for certain merchant power plants.

Other 7/1/2019 -$6.0 -$14.0

Exempted a portion of Social Security benefits for certain taxpayers. The amount of Social Security benefits taxed will be reduced by 25% beginning Jan. 1, 2020, by 50% beginning Jan. 1, 2021, and completely beginning Jan. 1, 2022.

Personal Income

7/1/2020 N.A. -$2.0

Enacted a marketplace facilitator sales tax collection requirement.

Sales and Use

7/1/2019 $6.3 $6.5

Tax Revenue=


$0.0 $0.0

Revenue Total= -$16.5 -$45.5 Wisconsin Modified the state apportionment formula for

income derived from a broadcasters' gross receipts.

Corporate Income

TY 2019 -$13.0 -$13.0

Reduced the marginal tax rate that applies to taxable income that falls within the second income tax bracket. The rate went from 5.84% to 5.21% (for 2019, $15,680 to $31,360 for joint filers.) This change was part of a larger reform measure.

Personal Income

TY 2019 -$168.9 -$152.6

Require the marginal tax rate for the lowest income tax bracket (for tax year 2019, taxable income of less than $15,680 for married joint filers) and for the second income tax bracket be reduced proportionally by the additional sales tax collections received from certain out-of-state retailers (retailers that must collect sales tax following Wayfair) and from marketplace providers (see below). The first rate reduction applies to tax year 2019, and the second rate reduction applies to tax year 2020 and annually thereafter. The tax rates are estimated to be 3.89% and 5.08% in TY 2019, respectively, and 3.79% and 4.96% in TY 2020 and thereafter, respectively. This change was part of a larger reform measure.

Personal Income

TY 2019, TY 2020

-$60.0 -$119.3

Interaction effects of law changes regarding taxable income, tax rates and tax credits between provisions of the biennial budget bill and the tax rate reductions described above. This change was part of a larger reform measure.

Personal Income

TY 2019 $2.0 $4.0

Following the U.S. Supreme Court decision in Wayfair v. South Dakota, extended nexus to certain remote sellers that were not required to collect and remit the tax prior to the decision. This change was part of a larger reform measure.

Sales and Use

10/1/2018 $60.0 $60.0

40

Created provisions that require marketplace providers to collect and remit state sales or use tax on sales facilitated by the marketplace provider on behalf of the marketplace seller. This change was part of a larger reform measure.

Sales and Use

1/1/2020 $33.5 $67.1

Provided a one-time reduction for persons subject to sales tax audits equal to 10% of the additional sales tax due for each year of the audit period if the person subject to audit has less than $5 million in gross sales for each year of the audit period.

Sales and Use

1/1/2019 -$1.2 -$1.6

Repealed sales tax on internet access, as required under federal law.

Sales and Use

7/1/2020 N.A. -$166.0

Enacted an excise tax on vapor products on the volume of the liquid or other substance-based on the volume as listed by the manufacturer. The rate is $0.05 per milliliter.

Tobacco 10/1/2019 $2.3 $3.2

Tax Revenue=

-$145.3 -$318.2 Increased auto registration fees from $75 to $85. Fee 10/1/2019 $28.0 $37.3 Increased registration fees for light trucks/vehicles

not exceeding 4,500 pounds from $75 to $100. Fee 10/1/2019 $4.6 $6.2

Increased registration fees for light trucks/vehicles not exceeding 6,000 pounds from $84 to $100.

Fee 10/1/2019 $6.3 $8.6

Increased title fees for all vehicles from $69.50 to $164.50.

Fee 10/1/2019 $114.7 $158.3

Increased the annual custodial parent fee for child support enforcement services to comply with federal law. The rate went from $25 to $35.

Fee 10/1/2019 $0.8 $1.0

Increased assessments on annual gross operating revenues from intrastate telecommunications providers that are deposited into the Universal Service Fund to increase funding for public library system aid.

Fee 7/1/2019 $1.0 $1.0

Non-Tax Revenue=

$155.3 $212.4 Revenue Total= $10.0 -$105.8 Wyoming Required marketplace facilitators to collect and

remit the sales and use tax due on retail sales on behalf of marketplace sellers.

Sales and Use

7/1/2019 $7.0 $7.0

Tax Revenue=


$0.0 $0.0

Revenue Total= $7.0 $7.0 District of Columbia

High-technology companies are eligible for a credit equal to an exemption of business franchise taxes for five years and thereafter the franchise tax rate is 6%. As of tax year 2020, the 6% rate is limited to no more than five years, provided that the total amount of credit a QHTC may receive does not exceed $250,000 in a taxable year.

Corporate Income

10/1/2019 $5.4 $7.2

Established a deed recordation tax exemption for rental housing owners who are nonprofit entities,

Other 10/1/2019 -$1.8 -$1.8

41

lease their units at certain income thresholds, and comply with additional requirements

Increased the deed transfer and recordation tax rates for mixed-use and commercial real estate transactions valued at $2 million or higher.

Other 10/1/2019 $90.8 $111.1

Increased sustainable energy surcharges on electricity, natural gas and home fuel oil.

Other 10/1/2019 $23.8 $22.6

Increased the maximum per taxpayer real property tax credit from $1,000 to $1,200, raised the income eligibility threshold for the credit, and excluded dependent income from the calculation.

Personal Income

10/1/2019 -$3.8 -$3.9

Extended a $1,000 per child care tax credit for taxpayers with incomes of $150,000 or less and indexed the credit to inflation.

Personal Income

10/1/2019 -$1.4 -$1.4

Eliminated a rate reduction trigger, which set the tax rate on commercial properties with an assessed value greater than $10 million permanently at $1.89 for each $100 of assessed value. No change in taxpayer liability.

Property 10/1/2019 $24.7** $25.2**

Delayed Line Hotel property tax abatement. No change in taxpayer liability.

Property 10/1/2019 $1.0** N.A.**

Established real property tax exemptions for rental housing owners who are nonprofit entities, lease their units at certain income thresholds, and comply with additional requirements.

Property 10/1/2019 -$0.9 -$1.9

Established a feminine hygiene and diaper sales tax exemption.

Sales and Use

10/1/2019 -$4.5 -$4.6

Imposed an 8% gross receipts tax on soft drinks. Sales and Use

10/1/2019 $3.2 $3.1

Repealed high-technology sales tax exemptions. Sales and Use

10/1/2019 $9.9 $10.4

Tax Revenue=

$120.8 $140.7 Authorized the district to continue to charge a fee

on each hospital’s outpatient gross patient revenue and a fee on each hospital’s inpatient net patient revenue through Sept. 30, 2029. No change in taxpayer liability.

Fee 10/1/2019 $13.4** $13.7**

Increased the residential parking permit fee. It will be $50 for the first vehicle, $75 for the second vehicle, $100 for the third vehicle, and $150 for the fourth and subsequent vehicles. The fee for the first vehicle for residents 65 years of age and older will be $35.

Fee 10/1/2019 $1.7 $3.1

Non-Tax Revenue=

$1.7 $3.1 Revenue Total= $122.4 $143.8

Appendix E. 2019 Tax and Revenue Changes by State · increase state revenue by between $6.3 million...

Documents

Transcript of Appendix E. 2019 Tax and Revenue Changes by State · increase state revenue by between $6.3 million...