State taxes

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.