State taxes

The state's government now expects general fund revenues to decline 2.3% in the current fiscal year from the previous fiscal year.

Political change in Washington and the looming budget battle is raising anxiety in state legislatures.

Nearly six thousand seats are up for grabs in state tilts, along with 14 bond issues.

As the economy normalizes, state revenues are shrinking

Florida's official outlook indicates the state government faces a $10 billion deficit by mid-2028 without major tax and spending changes.

States' January revenues were down from a year earlier.

The state's February general revenue collections came in $30.62 million below official estimates. but total collections for fiscal 2024 are $428.1 million ahead of forecasts.

Analysts say states can avoid short-term issues as a result of strong reserves but some may face challenges over the longer term.

The state asked the U.S. Supreme Court to deny a request to hear arguments seeking to overturn a capital gains tax expected to bring in $500 million annually.

Large reserves will insulate states against downgrades in the near future, one rating agency says.

The U.S. Court of Appeals for the Eleventh Circuit denied Treasury's motion for en banc review following its January panel decision that rendered the American Rescue Plan Act's Offset Provision "unconstitutionally unascertainable."

After years of surplus from COVID-19 related stimulus, state tax revenues declined by 6.7% in nominal terms and 9.4% in real terms in June when compared with a year prior.

State economists announced during a forecast presentation to lawmakers that taxpayers will see a record "kicker" rebate when they file next year's taxes.

Most states continue to fare well, despite economic shocks and weakening revenue growth.

Weakening revenues should be a red flag for states, particularly those planning tax cuts, said Lucy Dadayan of the Urban Institute's Tax Policy Center.

"This is a historic accomplishment — setting new records for the largest single-month revenue and personal income tax collections in state history," said Gov. Jim Justice.

The growth in March tax collections reported by the states was less robust than a year earlier.

The bill, introduced in the House by Rep. George Santos, R-NY, is one of three currently circling around Congress that would lift the state and local tax deduction.

State and local governments across the country are making increased efforts to put money forward for the purpose of reparations.

Gov. Kevin Stitt wants to tap surplus revenue to build up reserves and is once again asking the legislature to eliminate the state sales tax on groceries and pass an expanded school voucher program.