The mix of tax sources states choose can have important implications for both revenue stability and economic growth, and the many variations across states are indicative of the different ways states weigh competing policy goals.
29 min read
Maine has blueberry taxes. Alabama has mosquito taxes. Each state and county has its tax quirks. But when state and local governments want to raise revenues, there are four key taxes they turn to.
There are a number of sources of state and local tax collections each with important implications for revenue stability and economic growth. Which taxes does your state and/or locality rely on most?
22 min read
Some state lawmakers are considering decoupling from the pro-growth expensing provisions of the OBBBA due to revenue concerns, but it is valuable to recognize just how much the corporate tax base has expanded over the past decade.
6 min read
Each level of government provides its own services and therefore levies its own taxes to generate revenue for these services.
While the Council of DC is right to consider decoupling its tax code from several revenue-reducing provisions in the OBBBA, they should maintain conformity with the business expensing reforms that are strongly pro-growth, better align with sound tax principles, and primarily change the timing of revenues.
4 min read
When property values soar, homeowners can end up paying significantly higher taxes for basically the same services. Thankfully, there is a solution.
Backfilling forgone local property tax revenue through new state taxes is difficult because it dramatically shifts overall tax burdens, undermines local accountability, and cannot easily adjust for changing population mixes.
20 min read
Kansas policymakers’ proposal to expand the sales tax base is well-intentioned but could be designed more prudently.
Growing cigarette tax levels and differentials have made cigarette smuggling both a national problem and a lucrative criminal enterprise.
6 min read
For Congress, work on the One Big Beautiful Bill Act is done. But in state capitols, the work has not yet begun. Many of the tax changes in the federal reconciliation act flow through to state tax codes—automatically in some states, and subject to an update in states’ Internal Revenue Code conformity date in others.
39 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections.
17 min read
New Jersey’s residents deserve tax relief, and the state must stem the tide of out-migration. Affordable reforms in the near term could pave the way for more sweeping, and competitive, reforms to take root in the future.
Florida’s latest property tax debate highlights the familiar challenge of prioritizing pro-growth tax policy while tackling rising property tax burdens.
6 min read
Six states and DC assess a state-level non-UI payroll tax in addition to their mandatory federal UI payroll tax.
6 min read
Does your state have a small business exemption for machinery and equipment?
4 min read
By implementing a more sophisticated and nuanced trigger system for its tax reduction goals, North Carolina can sustain its trajectory toward lower tax rates, reinforce its reputation as a business-friendly state, and ensure long-term fiscal stability in an ever-changing economic landscape.
4 min read
Policymakers may consider a broader, more comprehensive property tax reform that creates a uniform system with effective levy limits to prevent unauthorized increases in property tax revenues and, in most cases, property tax bills.
4 min read
One area of the tax code in which extreme complexity and low compliance go hand-in-hand—and where reform is desperately needed—is in states’ nonresident individual income tax filing and withholding laws.
7 min read
The flat tax trend is gaining momentum nationwide, and Missouri lawmakers are right to identify income tax rate reductions as particularly pro-growth.
4 min read
The trend of tax exemptions on tips, overtime, and bonuses may sound like a win for workers, but it is a shortsighted fix with long-term drawbacks.
11 min read
North Dakota’s financial position provides it with a rare capacity to deliver meaningful property tax relief. However, policymakers must balance immediate relief with fiscal sustainability and ensure that local governments remain adequately funded in the years ahead.
5 min read
If adopted, these reforms would make Kansas’ tax code substantially more competitive while returning revenue growth to taxpayers in a fiscally responsible manner.
5 min read