New NCSL Report Highlights 2018 State Tax Actions

1/14/2019

NCSL press release

Denver—A new report, “State Tax Actions 2018,” which includes tax actions taken during regular and special legislative sessions in 2018, was issued by the National Conference of State Legislatures (NCSL). The report also accounts for actions approved by voters during the November 2018 general election.

All 50 states provided information, which was obtained through a survey of the National Association of Legislative Fiscal Offices.

NCSL’s 2018 State Tax Actions report highlight include:

  • Overall, net revenue changes were minimal, and the largest net tax change was a net increase in sales and use taxes of $847.1 million.
  • Collective actions taken by the 50 states and the District of Columbia resulted in a net tax increase of about $1.3 billion, representing a 0.1 percent increase of the prior year’s tax collections.
  • States faced an abnormal set of federal changes that resulted in an uptick in activity, the Tax Cuts and Jobs Act, legalized sports gambling in Murphy v. National Collegiate Athletic Association, and taxes on remote sales in South Dakota v. Wayfair, Inc.
  • All tax categories saw tax increases, except for personal income taxes and health-care-related taxes. Alcoholic beverage taxes experienced no changes.
  • Of the 50 states and District of Columbia reporting, nine increased net taxes by more than 1 percent. Five states reported a net decrease of more than 1 percent.

This annual report is a cooperative effort of the National Association of Legislative Fiscal Offices (NALFO) and the National Conference of State Legislatures’ (NCSL) Fiscal Affairs Program. Read the report here.

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NCSL is a bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.