State Tax Changes During 2010
January 12, 2011
We’ve released a new Special Report outlining the significant state tax changes during 2010. Due to a combination of improving revenues and growing political opposition to increased state-level taxes and additional federal aid to states, 2010 was a lighter year on state-level tax changes than anticipated.
Most of the states that raised taxes in 2010 have aimed the increases at specific groups, such as high-income earners, smokers, or out-of-state business transactions. These revenue sources may provide short-term relief but can cause harm to the state economy in the short and long term.
The 8-page report covers income tax increases (Oregon), decreases (California-for now at least, Maryland, New Jersey, North Carolina, Ohio, and Rhode Island), sales tax changes (Arizona & Kansas), and trends in click-through nexus/”Amazon” taxes, sales tax holidays, corporate income taxes, cigarette taxes (7 states), soda taxes, gasoline taxes, film tax credits, lotteries, energy taxes, and estate taxes.