State taxes

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.

The $10,000 state and local tax deduction cap is an important issue for high tax states like New York and California and investors who trade paper from those states.

A number of states are taking aim at tax reductions, though some experts view the move as misguided policy.

State spending growth topped 18.2% in FY 2022, the highest annual increase in state spending since the National Association of State Budget Officers began recording the data in 1979.

A Federal appellate court has issued two opinions in the cases of Ohio and Kentucky and Tennessee, and in the latter, agreed the offset provision is unconstitutional.

Jared Polis' $42.7 billion all-funds spending plan for the fiscal year that begins July 1 includes a $16.7 billion general fund with a $2.174 billion reserve.

There are only four statewide bond measures appearing on ballots across the country, the lowest since 2010.

The initiative would have raised income taxes on affluent Californians to benefit local health departments.

The Senate Finance Committee on Tuesday brought small business leaders together to discuss the pitfalls of complying with dozens if not hundreds of local tax regimes.

The latest Congressional effort challenging the state and local tax deduction cap would stop the IRS from restricting state legislation that offsets the policy.