Alabama

 

 

 

Alaska

N/A - No state sales tax but local sales taxes are additional.

 

N/A

Arizona

Governor has proposed a 1-cent increase in the sales tax to generate about $1 billion in the first year. Because the deadline has passed for this measure to appear on the November ballot, the Governor hopes to have the proposal on a special election ballot in March 2010.

 

 

Arkansas

 

 

 

California

Lawmakers passed, and the governor signed, a bill approving a temporary 1-cent sales tax increase. In a special election that was held May 19, 2009, voters declined to extend the sales tax increase.

 

 

 

The income tax was raised by 0.25%.

Colorado

Enacted measure eliminates the vendor fee for retailers collecting sales tax. The measure is expected to generate $68.2 million for FY 2010.

 

Enacted measure eliminates the sales tax exemption on cigarettes for two years. The measure is expected to generate $31 million in FY 2010.

 

Enacted measure reduces the interest paid on overpayments associated with tax returns. The measure is expected to generate $2.3 million per year.

 

Enacted measure eliminates the subtractions for Colorado source capital gains. The measure is expected to generate $7.1 million per year.

Connecticut

Post-enactment of the budget, the governor’s office has proposed canceling a projected 0.5 % cut in the sales tax which would save an estimated $130 million in revenue.

Enacted budget increases the corporate tax by adding a 10% surcharge, effective through 2011. The surcharge will only apply to businesses with more than $100 million in annual gross income.

 

Failed: Lawmakers explored, but did not pass, a 25% surcharge on the corporate profits tax.

Enacted budget increases the income tax for those with taxable incomes over $1 million for joint filers, $800,000 for heads of households, and $500,000 for single filers and married people filing separately.

 

Failed: Lawmakers explored, but did not pass, a proposal that would have instituted a graduated personal income tax, including increasing taxes to 6% for individuals earning over $265,000 annually or couples earning over $500,000 annually, 7% for couples earning over $600,00 annually, and 7.5% for couples earning over $750,000 annually.

Delaware

N/A

 

Enacted budget increases taxes by 1% - from 5.95% to 6.95% - for all taxable income over $60,000. The measure is expected to generate $28.3 million in FY 2010.

 

Enacted budget imposes a state income tax on lottery winnings. The measure is expected to generate $1 million in FY 2010.

Florida

Failed: Senate Finance Committee passed legislation what would repeal numerous sales tax exemptions, including the partial (50%) exemption for materials, tools, fuel, machinery and equipment used in manufacturing tangible personal property. Repeal of specified sales tax exemptions is estimated to generate $79.5 million per year beginning in FY 2011.

 

Failed: Senate lawmakers proposed to eliminate the sales tax exemption on bottled water. The bill did not pass.

Failed: Senate Finance Committee passed legislation what would create a temporary 30% corporate tax surcharge for income years 2009, 2010 and 2011. The surcharge is expected to generate $160 million in FY 2010, $106 million in FY 2011 and $49 million in FY 2012.

 

Failed: Senate Finance Committee passed legislation what would limit the total value of corporation tax credits from 70% of tax liability to 65% for the 2009 income year and to 50% for the 2010 income year. The measure is expected to generate $10 million in FY 2010 and $40 million per year beginning in FY 2011.

N/A

Georgia

 

 

 

Hawaii

 

 

Enacted budget (that overrode the Governor's veto) raises the personal income tax for the top wage earners in the state. Single taxpayers who make $150,000 or more a year, heads of households who earn $225,000 or more a year, and couples who make $300,000 or more a year will see their income tax rate rise from 8.25% to 11%.

Idaho

 

 

 

Illinois

Enacted legislation raises the tax on sugary sports and energy drinks, certain fruit drinks, and candy that does not include flour as an ingredient or requires refrigeration. Now those items are taxed under the state’s “general merchandise” tax at a rate of 6.25%. Previously, those items were taxed at a rate of 1%. This change is expected to raise $40 million over the first year. The definition of soft drink was extended to include nonalcoholic beverages that contain natural or artificial sweeteners and contain 50% or less vegetable or fruit juice by volume.

Enacted legislation raises the tax on personal hygiene products. Now those items are taxed under the state’s “general merchandise” tax at a rate of 6.25%. Previously, those items were taxed at a rate of 1%.


 

Failed: Governor has proposed increasing the corporate income tax rate to 7.2% from 4.8%. The increase would bring in approximately $350 million. The proposal did not pass but the governor hopes predicted future budget gaps will force the legislature to reconsider.

The Senate passed a measure that would increase the corporate tax rate from 4.8% to 7.2%. The House has not yet taken action on the bill (10/09).

Failed: Governor has proposed increasing the personal income tax rate to 4.5% from the current rate of 3%. The House voted down the Governor's proposal.

The Senate passed a measure that would increase the income tax rate for individuals, trusts, and estates from 3% to 5%. The House has not yet taken action on the bill (10/09).

Indiana

 

 

 

Iowa

 

Enacted measure scales back a business write-off for net operating losses. The measure is expected to generate $18 million in FY 2010.

 

Kansas

Enacted measure reduces the statute of limitations for sales/use tax refunds from three years to one year. The measure is expected to generate $13.7 million.

 

Enacted measure tightens up individual income tax statute to clarify 3-year limit. The measure is expected to generate $3 million in FY 2010.

 

Enacted measure suspends the film production income tax credit for two years. The measure is expected to generate $1 million in FY 2010.

 

Enacted measure trims 10% from dozens of income tax credits for two years. The measure is expected to generate $9.2 million.

Kentucky

 

Legislation enacted that explicitly includes digital products such as software and cell phone ring tones as taxable when sold in Kentucky.

 

The governor signed a measure that will apply a 6% sales tax on packaged alcohol sales starting April 1, 2009 (the exemption of alcoholic beverages from the state sales tax was ended). The measure is expected to generate $51.9 million in FY 2010.

 

 

Louisiana

 

 

 

Maine

Enacted legislation broadens and raises the sales tax base on the “meals and lodging tax.” The tax was broadened to include amusement, meals, lodging, recreation, candy, repair services, courier services and more. The rate was increased from 7% to 8.5%.  

 

Enacted measure changes the apportionment formula on sales delivered outside the state. The measure is expected to generate $2.1 million in FY 2010.

 

Enacted measure waives 90% of the penalties on late sales tax collections. The measure is expected to generate $2.5 million in FY 2010.

 

Enacted measure calls for new sales tax enforcement initiatives. The measure is expected to generate $2.8 million in FY 2010.

Enacted measure scales back a business write-off for net operating losses for 3 years. The measure is expected to generate $8 million in FY 2010.

Governor has proposed limiting next year’s proposed increase in state earned income tax credits for low-wage workers, a move estimated to save $83 million.

Maryland

 

 

 

Massachusetts

Enacted measure increases the states sales tax rate to 6.25%, from 5%. This measure is expected to generate $759 million in FY 2010.

 

Enacted budget extends the state's sales tax to the retail purchase of beer, wine, and hard liquor. This measure is expected to generate $78.8 million in FY 2010.

 

 

Michigan

Governor has proposed levying a 6% sales tax on tickets to concerts as well as pro and college sporting events to raise an estimated $87 million.

 

Governor has proposed levying a 6% sales tax on vending machine sales to raise an estimated $29 million.

 

Governor has proposed levying a 6% tax on certain service contracts to raise an estimated $28 million.

 

Governor has proposed levying a 1-cent tax per bottle of water sold in the state to raise an estimated $18 million.

 

Senate democrats have proposed suspending the automatic inflationary increase in the personal exemption on Michigan’s income tax.

 

Governor has proposed changing tax "loopholes."

 

Governor supports a switch to a graduated income tax plan. The idea failed to gain enough momentum to pass.

Minnesota

 

 

Lawmakers passed, but the Governor vetoed, a law setting a new top tax bracket and rate on individual income. The proposal would have raised the current of 7.85% to 9% for married couples earning over $250,000.

Mississippi

 

 

 

Missouri

 

 

 

Montana

N/A

 

 

Nebraska

 

 

 

Nevada

Enacted budget increases the state's 6.5% sales tax by 0.35%. All funds generated from the raised tax go to support local schools. The tax is a local tax increase – it has no state revenue impact.

Enacted budget increases the modified business tax, while lowering rates for small businesses with less than $250,000 in total payroll each year. The existing tax of 0.63% on business payroll was rolled back to 0.5% for businesses with less than $250,000 in annual payroll while businesses with larger total payrolls will increase to 1.17%. The measure is expected to generate $173.3 million in FY 2010.

N/A

New Hampshire

N/A

Enacted measure changes the business profits tax filing threshold. The measure is expected to generate $5 million in FY 2010. 

Measure enacts a 5% capital gains tax on earnings over $5,000. The measure is expected to generate $15 million in FY 2010.

 

New Jersey

 

Enacted measure extends the 4% business tax surcharge that was set to expire. The measure is expected to generate $80 million in FY 2010.

Enacted budget raises taxes by .75% on family income over $400,000. The measure is expected to generate $703 million in FY 2010.

 

Lawmakers increased the tax rate on households earning more than $1 million from 10.25% to 10.75%, effective for 1 year, generating $200 million in FY 2010.

 

Enacted budget eliminates, for one year, the property tax deduction for taxpayers earning over $250,000, and caps the deduction at $5,000 for those who earn $250,000 or less. This measure is expected to generate $100 million in FY 2010.

New Mexico

Lawmakers proposed, but did not pass, increasing the gross receipts tax by 0.75%.

 

 

New York

Enacted budget expands the definition of “vendor” to include dot.com’s that have a brick and mortar affiliate in the state even if they are separate corporate structures. Generating an estimated $9 million in FY 2010. 

 

Governor proposed eliminating the sales tax exemption on clothing under $110 and imposing a sales tax on cable, satellite TV and radio. Neither bill passed.

 

Democratic leaders have proposed increasing the state's sales tax by 0.25%.

Governor and legislative leaders have increased the taxes and fees paid by nuclear plants, racehorse owners, farmers, and pesticide applicators.

 

Enacted budget changes the classification of for-profit HMOs to be defined as insurance corporations, generating $150 million.

 

Lawmakers increased the income tax from to 7.85% for those earning more than $200,000, but less than $500,000. Those earning over $500,000 saw their tax rate raised to 8.97%. This tax increase would expire in 3 years and is set to generate about $4 billion.

 

Lawmakers limited the number of itemized deductions a taxpayer can list on his or her returns. Individuals with adjusted gross incomes of more than $1 million can only claim the standard deduction. This measure will generate $140 million in FY 2010.

 

Enacted budget implements a Metropolitan Transit Authority (including NYC) payroll tax that cannot be passed onto the employee. The measure is expected to generate $1 billion in FY 2010.

 

North Carolina

Enacted budget raises the sales tax rate by 1-cent which will be effective through mid-2011. This measure is expected to generate $803.5 million in FY 2010.

 

Enacted budget creates a new so-called "Amazon tax" on digital downloads, such as music files, computer software and electronic books. The law requires retailers that had at least $10,000 in sales in the previous four quarters to collect and pay North Carolina sales tax when consumers arrive at their online stores by clicking through the Web offering of a North Carolina-based affiliate. Together, the Amazon tax and the digital products tax are expected to generate $8.4 million in FY 2010.

 

Enacted budget repeals the sales tax exemption for mailed magazines, generating an estimated $3.4 million in FY 2010.

Enacted budget adds a surcharge of 3% on 2009 and 2010 corporate income taxes, generating an estimated $23.1 million in FY 2010.

Enacted budget adds a 2% or 3% surcharge for certain higher-income taxpayers. Individuals with taxable income of at least $60,000 and couples reporting $100,000-$250,000 will face a surtax amounting to an extra $20 for each $1,000 in taxes they owe in 2009 and 2010. Couples reporting more than $250,000 would pay $30 extra for every $1,000 that they owe. This measure is expected to generate $195 million in FY 2010.

North Dakota

 

 

 

Ohio

 

 

Post-enactment of the budget, the governor has proposed delaying a scheduled reduction of 4.2%  in the state’s personal income tax rate. The House has passed the measure and it is now pending in the Senate. The move would generate about $844 million. The budget gap arose after a judge ruled that the governor’s slot machine proposal was subject to a voter referendum. The enacted budget had called for $851.5 million in revenue from the slot machine measure.

Post-budget enactment measure update 12/16/2009: The governor and lawmakers approved a plan that would delay a 4.2 % income tax reduction which will avert $850 million in budget cuts for K-12 education.

Oklahoma

 

Enacted measure modifies certain withholding requirements, generating an estimated $27 million in FY 2010.

 

Oregon

N/A

Enacted budget increases the corporate income tax rate from 6.6% to 7.9% of corporate net income in excess of $250,000. The measure is expected to generate $10 million in FY 2010.

Enacted measure implements a new corporate minimum tax based on gross sales. The measure is expected to generate $32 million in FY 2010.

Enacted measure decouples Oregon from federal legislation regarding a “bonus depreciation” which allows companies to accelerate depreciation write-offs on capital purchases. The measure is expected to generate $40 million in FY 2010. Another measure decouples Oregon from federal legislation regarding bank debt write-offs, generating an estimated $20 million in FY 2010.

Lawmakers increased the income tax, on families making more than $250,000 and on individuals making more than $125,000, to 10.8%. The income tax on families making more than $500,000 was raised to 11%.  The measure is expected to generate $243 million in FY 2010.

Enacted measure phases out the deduction for federal taxes, generating an estimated $16 million in FY 2010.

Pennsylvania

Failed: The governor and democratic legislative leaders had proposed establishing a sales tax on theater, dance, music, and performing arts admissions. The proposal did not include taxing tickets to movies or sporting events.

 

The governor has stated that he believes that the only sales tax exemptions that should be retained are the ones for food, clothing, and pharmaceuticals.

 

Failed: Lawmakers considered making political advertising subject to the 6% sales tax. The measure could generate $6 million.

Enacted budget postpones and the scheduled phase out of the state Capital Stock and Franchise tax, a tax on business assets that was set to be phased out in two years. Instead, the budget increases the tax rate by rolling the tax rate back to 2008 levels, generating an estimated $373 million in FY 2010.

Failed: The Governor had proposed raising the personal income tax from 3.07% to 3.57%.

Puerto Rico

 

Governor plans to impose a two-year, 5% tax on banks, corporations, insurance companies and cooperatives.

 

Governor plans to implement a two-year moratorium on tax credits to many businesses.

Governor plans to impose a two-year, 5% tax increase on individuals earning $100,000 or more annually.

Rhode Island

Failed: Governor proposed reducing the sales tax from 7% to 5%, but applying the sales tax to more purchases - this was not enacted.

 

Enacted budget includes the "Amazon law" designed to capture more sales taxes from online sales. The law requires out-of-state retailers to collect Rhode Island sales tax on purchases that are made through affiliated Rhode Island Web sites and businesses.

 

Enacted budget taxes capital gains as ordinary income.

South Carolina

 

 

 

South Dakota

 

 

N/A

Tennessee

Enacted measure extends sales tax to software maintenance agreements, generating an estimated $9 million in FY 2010. The measure also eliminates the exemption for in-house software used by companies, generating an estimated $1.5 million in FY 2010.

 

N/A - Only interest income and dividends are taxed.

Texas

 

 

N/A

U. S. Virgin Islands

 

 

 

Utah

 

 

 

Vermont

Enacted budget creates a sales tax on digital downloads. The measure is expected to generate $1 million in FY 2010.

 

 

 

Enacted budget increases the tax on capital gains. The measure is expected to generate $6 million in FY 2010.

Enacted budget caps the state income tax deduction at $5,000. This measure is expected to generate $16.2 million in FY 2010.

Virginia

 

Enacted measure phases out, over three years, the ability to avoid corporate income tax using REITs. This measure is expected to generate $5 million in FY 2010.

 

Washington

 Governor signed legislation that subjects online gambling and some internet-based commerce to the state's sales and use tax. Under the enacted measure, digitally transferred goods and services are subject to the state's 6.5% sales tax, as well as local option sales and use taxes.

 

Enacted measure improves sales tax collections by modifying the business exemption certificates program. This measure is expected to generate $29 million in FY 2010.

 

N/A

West Virginia

 

 

 

Wisconsin

The state has enacted a new tax on Internet downloads and specialized computer software in the amount of $0.05. This measure is expected to generate $4.2 million in FY 2010.

 

Enacted measure expands taxation on computer software. This measure is expected to generate $28.3 million in FY 2010.

 

 

Enacted budget adopts combined reporting for unitary businesses, generating an estimated $64.4 million in FY 2010.

 

Enacted budget eliminates the ability of businesses to claim the federal tax deduction for domestic production activities income which previously allowed manufacturers of goods to deduct a portion of their production costs from corporate income taxes. This measure is expected to generate $27.3 million in FY 2010.

 

Governor proposed changes in the corporate tax to increase state revenue by $257 million. Oil companies would pay the bulk of the tax increase ($217 million).   This measure was not enacted.

Post-enactment of the budget, Rep. Mason has proposed raising the income tax on those earning more than $1 million per year by 1%. The measure would generate an estimated $145 million for FY 2011.

 

Enacted budget delays the phase-in of certain personal income tax deductions. This measure is expected to generate $33.1 million in FY 2010.

 

Enacted budget raises the income tax on those earning more than $225,000 for individuals and $300,000 for married couples. This measure is expected to generate $163.4 million in FY 2010.

 

Enacted budget lowers the tax exemption on capital gains from 60% to 30%. This measure is expected to generate $115.1 million in FY 2010.

Wyoming

 

 

N/A

District of Columbia

Enacted emergency legislation raises the district’s sales and use tax from 5.75% to 6%.

 

 

Key:
(N/A) = Not applicable

 

Source: NCSL survey of state legislative fiscal offices: June 2009 and November 2008. Various media and government outlets: January through December 2009.

 

This table is intended to provide general information and does not necessarily address all aspects of this topic. The table reflects in summary form information gathered from media sources and NCSL surveys of legislative fiscal offices. Please contact us at budget.revenue.updates@ncsl.org if you know of any additional information that should be reflected here or any errors that should be corrected.

Alabama

 

 

 

Alaska

N/A - No state sales tax but local sales taxes are additional.

 

N/A

Arizona

Governor has proposed a 1-cent increase in the sales tax to generate about $1 billion in the first year. Because the deadline has passed for this measure to appear on the November ballot, the Governor hopes to have the proposal on a special election ballot in March 2010.

 

 

Arkansas

 

 

 

California

Lawmakers passed, and the governor signed, a bill approving a temporary 1-cent sales tax increase. In a special election that was held May 19, 2009, voters declined to extend the sales tax increase.

 

 

 

The income tax was raised by 0.25%.

Colorado

Enacted measure eliminates the vendor fee for retailers collecting sales tax. The measure is expected to generate $68.2 million for FY 2010.

 

Enacted measure eliminates the sales tax exemption on cigarettes for two years. The measure is expected to generate $31 million in FY 2010.

 

Enacted measure reduces the interest paid on overpayments associated with tax returns. The measure is expected to generate $2.3 million per year.

 

Enacted measure eliminates the subtractions for Colorado source capital gains. The measure is expected to generate $7.1 million per year.

Connecticut

Post-enactment of the budget, the governor’s office has proposed canceling a projected 0.5 % cut in the sales tax which would save an estimated $130 million in revenue.

Enacted budget increases the corporate tax by adding a 10% surcharge, effective through 2011. The surcharge will only apply to businesses with more than $100 million in annual gross income.

 

Failed: Lawmakers explored, but did not pass, a 25% surcharge on the corporate profits tax.

Enacted budget increases the income tax for those with taxable incomes over $1 million for joint filers, $800,000 for heads of households, and $500,000 for single filers and married people filing separately.

 

Failed: Lawmakers explored, but did not pass, a proposal that would have instituted a graduated personal income tax, including increasing taxes to 6% for individuals earning over $265,000 annually or couples earning over $500,000 annually, 7% for couples earning over $600,00 annually, and 7.5% for couples earning over $750,000 annually.

Delaware

N/A

 

Enacted budget increases taxes by 1% - from 5.95% to 6.95% - for all taxable income over $60,000. The measure is expected to generate $28.3 million in FY 2010.

 

Enacted budget imposes a state income tax on lottery winnings. The measure is expected to generate $1 million in FY 2010.

Florida

Failed: Senate Finance Committee passed legislation what would repeal numerous sales tax exemptions, including the partial (50%) exemption for materials, tools, fuel, machinery and equipment used in manufacturing tangible personal property. Repeal of specified sales tax exemptions is estimated to generate $79.5 million per year beginning in FY 2011.

 

Failed: Senate lawmakers proposed to eliminate the sales tax exemption on bottled water. The bill did not pass.

Failed: Senate Finance Committee passed legislation what would create a temporary 30% corporate tax surcharge for income years 2009, 2010 and 2011. The surcharge is expected to generate $160 million in FY 2010, $106 million in FY 2011 and $49 million in FY 2012.

 

Failed: Senate Finance Committee passed legislation what would limit the total value of corporation tax credits from 70% of tax liability to 65% for the 2009 income year and to 50% for the 2010 income year. The measure is expected to generate $10 million in FY 2010 and $40 million per year beginning in FY 2011.

N/A

Georgia

 

 

 

Hawaii

 

 

Enacted budget (that overrode the Governor's veto) raises the personal income tax for the top wage earners in the state. Single taxpayers who make $150,000 or more a year, heads of households who earn $225,000 or more a year, and couples who make $300,000 or more a year will see their income tax rate rise from 8.25% to 11%.

Idaho

 

 

 

Illinois

Enacted legislation raises the tax on sugary sports and energy drinks, certain fruit drinks, and candy that does not include flour as an ingredient or requires refrigeration. Now those items are taxed under the state’s “general merchandise” tax at a rate of 6.25%. Previously, those items were taxed at a rate of 1%. This change is expected to raise $40 million over the first year. The definition of soft drink was extended to include nonalcoholic beverages that contain natural or artificial sweeteners and contain 50% or less vegetable or fruit juice by volume.

Enacted legislation raises the tax on personal hygiene products. Now those items are taxed under the state’s “general merchandise” tax at a rate of 6.25%. Previously, those items were taxed at a rate of 1%.


 

Failed: Governor has proposed increasing the corporate income tax rate to 7.2% from 4.8%. The increase would bring in approximately $350 million. The proposal did not pass but the governor hopes predicted future budget gaps will force the legislature to reconsider.

The Senate passed a measure that would increase the corporate tax rate from 4.8% to 7.2%. The House has not yet taken action on the bill (10/09).

Failed: Governor has proposed increasing the personal income tax rate to 4.5% from the current rate of 3%. The House voted down the Governor's proposal.

The Senate passed a measure that would increase the income tax rate for individuals, trusts, and estates from 3% to 5%. The House has not yet taken action on the bill (10/09).

Indiana

 

 

 

Iowa

 

Enacted measure scales back a business write-off for net operating losses. The measure is expected to generate $18 million in FY 2010.

 

Kansas

Enacted measure reduces the statute of limitations for sales/use tax refunds from three years to one year. The measure is expected to generate $13.7 million.

 

Enacted measure tightens up individual income tax statute to clarify 3-year limit. The measure is expected to generate $3 million in FY 2010.

 

Enacted measure suspends the film production income tax credit for two years. The measure is expected to generate $1 million in FY 2010.

 

Enacted measure trims 10% from dozens of income tax credits for two years. The measure is expected to generate $9.2 million.

Kentucky

 

Legislation enacted that explicitly includes digital products such as software and cell phone ring tones as taxable when sold in Kentucky.

 

The governor signed a measure that will apply a 6% sales tax on packaged alcohol sales starting April 1, 2009 (the exemption of alcoholic beverages from the state sales tax was ended). The measure is expected to generate $51.9 million in FY 2010.

 

 

Louisiana

 

 

 

Maine

Enacted legislation broadens and raises the sales tax base on the “meals and lodging tax.” The tax was broadened to include amusement, meals, lodging, recreation, candy, repair services, courier services and more. The rate was increased from 7% to 8.5%.  

 

Enacted measure changes the apportionment formula on sales delivered outside the state. The measure is expected to generate $2.1 million in FY 2010.

 

Enacted measure waives 90% of the penalties on late sales tax collections. The measure is expected to generate $2.5 million in FY 2010.

 

Enacted measure calls for new sales tax enforcement initiatives. The measure is expected to generate $2.8 million in FY 2010.

Enacted measure scales back a business write-off for net operating losses for 3 years. The measure is expected to generate $8 million in FY 2010.

Governor has proposed limiting next year’s proposed increase in state earned income tax credits for low-wage workers, a move estimated to save $83 million.

Maryland

 

 

 

Massachusetts

Enacted measure increases the states sales tax rate to 6.25%, from 5%. This measure is expected to generate $759 million in FY 2010.

 

Enacted budget extends the state's sales tax to the retail purchase of beer, wine, and hard liquor. This measure is expected to generate $78.8 million in FY 2010.

 

 

Michigan

Governor has proposed levying a 6% sales tax on tickets to concerts as well as pro and college sporting events to raise an estimated $87 million.

 

Governor has proposed levying a 6% sales tax on vending machine sales to raise an estimated $29 million.

 

Governor has proposed levying a 6% tax on certain service contracts to raise an estimated $28 million.

 

Governor has proposed levying a 1-cent tax per bottle of water sold in the state to raise an estimated $18 million.

 

Senate democrats have proposed suspending the automatic inflationary increase in the personal exemption on Michigan’s income tax.

 

Governor has proposed changing tax "loopholes."

 

Governor supports a switch to a graduated income tax plan. The idea failed to gain enough momentum to pass.

Minnesota

 

 

Lawmakers passed, but the Governor vetoed, a law setting a new top tax bracket and rate on individual income. The proposal would have raised the current of 7.85% to 9% for married couples earning over $250,000.

Mississippi

 

 

 

Missouri

 

 

 

Montana

N/A

 

 

Nebraska

 

 

 

Nevada

Enacted budget increases the state's 6.5% sales tax by 0.35%. All funds generated from the raised tax go to support local schools. The tax is a local tax increase – it has no state revenue impact.

Enacted budget increases the modified business tax, while lowering rates for small businesses with less than $250,000 in total payroll each year. The existing tax of 0.63% on business payroll was rolled back to 0.5% for businesses with less than $250,000 in annual payroll while businesses with larger total payrolls will increase to 1.17%. The measure is expected to generate $173.3 million in FY 2010.

N/A

New Hampshire

N/A

Enacted measure changes the business profits tax filing threshold. The measure is expected to generate $5 million in FY 2010. 

Measure enacts a 5% capital gains tax on earnings over $5,000. The measure is expected to generate $15 million in FY 2010.

 

New Jersey

 

Enacted measure extends the 4% business tax surcharge that was set to expire. The measure is expected to generate $80 million in FY 2010.

Enacted budget raises taxes by .75% on family income over $400,000. The measure is expected to generate $703 million in FY 2010.

 

Lawmakers increased the tax rate on households earning more than $1 million from 10.25% to 10.75%, effective for 1 year, generating $200 million in FY 2010.

 

Enacted budget eliminates, for one year, the property tax deduction for taxpayers earning over $250,000, and caps the deduction at $5,000 for those who earn $250,000 or less. This measure is expected to generate $100 million in FY 2010.

New Mexico

Lawmakers proposed, but did not pass, increasing the gross receipts tax by 0.75%.

 

 

New York

Enacted budget expands the definition of “vendor” to include dot.com’s that have a brick and mortar affiliate in the state even if they are separate corporate structures. Generating an estimated $9 million in FY 2010. 

 

Governor proposed eliminating the sales tax exemption on clothing under $110 and imposing a sales tax on cable, satellite TV and radio. Neither bill passed.

 

Democratic leaders have proposed increasing the state's sales tax by 0.25%.

Governor and legislative leaders have increased the taxes and fees paid by nuclear plants, racehorse owners, farmers, and pesticide applicators.

 

Enacted budget changes the classification of for-profit HMOs to be defined as insurance corporations, generating $150 million.

 

Lawmakers increased the income tax from to 7.85% for those earning more than $200,000, but less than $500,000. Those earning over $500,000 saw their tax rate raised to 8.97%. This tax increase would expire in 3 years and is set to generate about $4 billion.

 

Lawmakers limited the number of itemized deductions a taxpayer can list on his or her returns. Individuals with adjusted gross incomes of more than $1 million can only claim the standard deduction. This measure will generate $140 million in FY 2010.

 

Enacted budget implements a Metropolitan Transit Authority (including NYC) payroll tax that cannot be passed onto the employee. The measure is expected to generate $1 billion in FY 2010.

 

North Carolina

Enacted budget raises the sales tax rate by 1-cent which will be effective through mid-2011. This measure is expected to generate $803.5 million in FY 2010.

 

Enacted budget creates a new so-called "Amazon tax" on digital downloads, such as music files, computer software and electronic books. The law requires retailers that had at least $10,000 in sales in the previous four quarters to collect and pay North Carolina sales tax when consumers arrive at their online stores by clicking through the Web offering of a North Carolina-based affiliate. Together, the Amazon tax and the digital products tax are expected to generate $8.4 million in FY 2010.

 

Enacted budget repeals the sales tax exemption for mailed magazines, generating an estimated $3.4 million in FY 2010.

Enacted budget adds a surcharge of 3% on 2009 and 2010 corporate income taxes, generating an estimated $23.1 million in FY 2010.

Enacted budget adds a 2% or 3% surcharge for certain higher-income taxpayers. Individuals with taxable income of at least $60,000 and couples reporting $100,000-$250,000 will face a surtax amounting to an extra $20 for each $1,000 in taxes they owe in 2009 and 2010. Couples reporting more than $250,000 would pay $30 extra for every $1,000 that they owe. This measure is expected to generate $195 million in FY 2010.

North Dakota

 

 

 

Ohio

 

 

Post-enactment of the budget, the governor has proposed delaying a scheduled reduction of 4.2%  in the state’s personal income tax rate. The House has passed the measure and it is now pending in the Senate. The move would generate about $844 million. The budget gap arose after a judge ruled that the governor’s slot machine proposal was subject to a voter referendum. The enacted budget had called for $851.5 million in revenue from the slot machine measure.

Post-budget enactment measure update 12/16/2009: The governor and lawmakers approved a plan that would delay a 4.2 % income tax reduction which will avert $850 million in budget cuts for K-12 education.

Oklahoma

 

Enacted measure modifies certain withholding requirements, generating an estimated $27 million in FY 2010.

 

Oregon

N/A

Enacted budget increases the corporate income tax rate from 6.6% to 7.9% of corporate net income in excess of $250,000. The measure is expected to generate $10 million in FY 2010.

Enacted measure implements a new corporate minimum tax based on gross sales. The measure is expected to generate $32 million in FY 2010.

Enacted measure decouples Oregon from federal legislation regarding a “bonus depreciation” which allows companies to accelerate depreciation write-offs on capital purchases. The measure is expected to generate $40 million in FY 2010. Another measure decouples Oregon from federal legislation regarding bank debt write-offs, generating an estimated $20 million in FY 2010.

Lawmakers increased the income tax, on families making more than $250,000 and on individuals making more than $125,000, to 10.8%. The income tax on families making more than $500,000 was raised to 11%.  The measure is expected to generate $243 million in FY 2010.

Enacted measure phases out the deduction for federal taxes, generating an estimated $16 million in FY 2010.

Pennsylvania

Failed: The governor and democratic legislative leaders had proposed establishing a sales tax on theater, dance, music, and performing arts admissions. The proposal did not include taxing tickets to movies or sporting events.

 

The governor has stated that he believes that the only sales tax exemptions that should be retained are the ones for food, clothing, and pharmaceuticals.

 

Failed: Lawmakers considered making political advertising subject to the 6% sales tax. The measure could generate $6 million.

Enacted budget postpones and the scheduled phase out of the state Capital Stock and Franchise tax, a tax on business assets that was set to be phased out in two years. Instead, the budget increases the tax rate by rolling the tax rate back to 2008 levels, generating an estimated $373 million in FY 2010.

Failed: The Governor had proposed raising the personal income tax from 3.07% to 3.57%.

Puerto Rico

 

Governor plans to impose a two-year, 5% tax on banks, corporations, insurance companies and cooperatives.

 

Governor plans to implement a two-year moratorium on tax credits to many businesses.

Governor plans to impose a two-year, 5% tax increase on individuals earning $100,000 or more annually.

Rhode Island

Failed: Governor proposed reducing the sales tax from 7% to 5%, but applying the sales tax to more purchases - this was not enacted.

 

Enacted budget includes the "Amazon law" designed to capture more sales taxes from online sales. The law requires out-of-state retailers to collect Rhode Island sales tax on purchases that are made through affiliated Rhode Island Web sites and businesses.

 

Enacted budget taxes capital gains as ordinary income.

South Carolina

 

 

 

South Dakota

 

 

N/A

Tennessee

Enacted measure extends sales tax to software maintenance agreements, generating an estimated $9 million in FY 2010. The measure also eliminates the exemption for in-house software used by companies, generating an estimated $1.5 million in FY 2010.

 

N/A - Only interest income and dividends are taxed.

Texas

 

 

N/A

U. S. Virgin Islands

 

 

 

Utah

 

 

 

Vermont

Enacted budget creates a sales tax on digital downloads. The measure is expected to generate $1 million in FY 2010.

 

 

 

Enacted budget increases the tax on capital gains. The measure is expected to generate $6 million in FY 2010.

Enacted budget caps the state income tax deduction at $5,000. This measure is expected to generate $16.2 million in FY 2010.

Virginia

 

Enacted measure phases out, over three years, the ability to avoid corporate income tax using REITs. This measure is expected to generate $5 million in FY 2010.

 

Washington

 Governor signed legislation that subjects online gambling and some internet-based commerce to the state's sales and use tax. Under the enacted measure, digitally transferred goods and services are subject to the state's 6.5% sales tax, as well as local option sales and use taxes.

 

Enacted measure improves sales tax collections by modifying the business exemption certificates program. This measure is expected to generate $29 million in FY 2010.

 

N/A

West Virginia

 

 

 

Wisconsin

The state has enacted a new tax on Internet downloads and specialized computer software in the amount of $0.05. This measure is expected to generate $4.2 million in FY 2010.

 

Enacted measure expands taxation on computer software. This measure is expected to generate $28.3 million in FY 2010.

 

 

Enacted budget adopts combined reporting for unitary businesses, generating an estimated $64.4 million in FY 2010.

 

Enacted budget eliminates the ability of businesses to claim the federal tax deduction for domestic production activities income which previously allowed manufacturers of goods to deduct a portion of their production costs from corporate income taxes. This measure is expected to generate $27.3 million in FY 2010.

 

Governor proposed changes in the corporate tax to increase state revenue by $257 million. Oil companies would pay the bulk of the tax increase ($217 million).   This measure was not enacted.

Post-enactment of the budget, Rep. Mason has proposed raising the income tax on those earning more than $1 million per year by 1%. The measure would generate an estimated $145 million for FY 2011.

 

Enacted budget delays the phase-in of certain personal income tax deductions. This measure is expected to generate $33.1 million in FY 2010.

 

Enacted budget raises the income tax on those earning more than $225,000 for individuals and $300,000 for married couples. This measure is expected to generate $163.4 million in FY 2010.

 

Enacted budget lowers the tax exemption on capital gains from 60% to 30%. This measure is expected to generate $115.1 million in FY 2010.

Wyoming

 

 

N/A

District of Columbia

Enacted emergency legislation raises the district’s sales and use tax from 5.75% to 6%.

 

 

Key:
(N/A) = Not applicable

 

Source: NCSL survey of state legislative fiscal offices: June 2009 and November 2008. Various media and government outlets: January through December 2009.

 

This table is intended to provide general information and does not necessarily address all aspects of this topic. The table reflects in summary form information gathered from media sources and NCSL surveys of legislative fiscal offices. Please contact us at budget.revenue.updates@ncsl.org if you know of any additional information that should be reflected here or any errors that should be corrected.