Tax cuts

States nationwide saw slower general fund revenue growth in fiscal 2023 after gains the previous two fiscal years fueled by high inflation and federal stimulus.

After months of feuding on how to deliver a massive property tax cut, lawmakers finally passed legislation for an $18 billion package.

Legislative leaders said they agreed to an $18 billion package that includes a reduction in school property taxes and a higher homestead exemption.

The $54.3 billion spending plan for fiscal 2024 is $5.4 billion larger than last year's and $1.2 billion more than the proposal Gov. Phil Murphy pitched in February. It features tax-relief programs and tax code changes.

With no agreement on how to structure a historic property tax cut, Gov. Greg Abbott ordered state lawmakers back for a second special session.

As the Republican-controlled state House and Senate remain divided on how to deliver a historic tax cut, the governor vetoed dozens of bills to pressure lawmakers.

A bill passed this week would place a measure on the November statewide ballot to prevent growing home values from raising property taxes.

The Republican-controlled legislature sent the governor a tax cut bill that included replacing the state's three-tier personal income tax structure with a flat 5.15% rate.

The bill follows the same lines as Gov. Maura Healey's tax relief package proposed in February, but comes with a smaller price tag.

The rating agency said it could upgrade the state's ratings over a two-year period if recent healthy fund balances are maintained.

Gov. Greg Abbott used his State of the State address to fast track his priorities for the legislative session and drop a hint about an upcoming $100 billion transportation infrastructure plan.

The scheduled expiration of the TCJA tax cuts "is the most significant factor pushing up tax revenues relative to income over the next 10 years," the CBO said.

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.

Wisconsin Gov. Evers said he remains open to an income tax cut but only if it's accompanied with more education funding and property tax relief

The governor has recommended a $54.15 billion budget amid flat state revenue collections in the current fiscal year.

The legislation, which would make tax-exempt municipal bonds more attractive for high-income income retail customers, has no chance of becoming law.

Currently at least 33 states provide 113 different tax credits that are already federally deductible.

Gov. Rick Scott said his final budget will request $180 million in tax cuts.