State Tax Actions: 2017

June 2018

Preface and Acknowledgments

State Tax Actions 2017 presents information about the tax and revenue changes enacted by state legislatures during the 2017 calendar year. It also contains the results of tax measures that were voted on during any 2017 elections and special sessions. In addition to aggregate state tax information, the report contains detailed information on 50 states. The reported changes generally take effect in fiscal year (FY) 2018. For 46 states, the fiscal year begins July 1 and ends June 30. Exceptions are Alabama and Michigan, where fiscal years begin in October and end in September; Texas, September to August; and New York, April to March.

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. Without the advice, expertise and timely assistance of legislative fiscal staff from around the country, the report would not be possible.

Defining and Measuring Tax Changes

Organizations that measure state tax and revenue changes often report different numbers, resulting in confusion about the true magnitude of state tax increases or reductions.

Calculating state tax changes is complicated because there are two distinct ways changes may be counted.

One method—the “baseline” method—includes the effect of all statutory tax law changes adopted in the current legislative session. Under this method, only statutory tax law changes adopted in the 2017 legislative sessions are included.

The second method—the “taxpayer liability” method—measures the effect of tax changes on taxpayers and the economy, without regard to when statutory changes were adopted. Under this method, a state that makes a multi-year tax rate reduction would be credited with a tax reduction in each fiscal year during which the tax rate falls.

NCSL uses the taxpayer liability method, which excludes extensions of scheduled sunsets or other changes that are anticipated under current law because they pose no immediate tax change to the taxpayer.

Tax Highlights in 2017

State tax changes in 2017 were varied. Rather than continuing the trend of net reductions in personal and corporate income taxes, there was a significant net increase in personal income taxes. There were net tax increases in all categories except for sales and use taxes. This could be due to the slow revenue growth that was reported in NCSL’s Fall 2016 State Budget Update. A total of 10 states began fiscal year (FY) 2018 without a budget in place.

This report includes tax actions taken during regular and special legislative sessions in 2017, as well as actions approved by voters. Fifty states provided information, which was obtained through a survey of the National Association of Legislative Fiscal Offices. Highlights include:

Delaware, Illinois and Kansas experienced the largest tax increases in 2017. Both Illinois and Kansas enacted the largest increases in personal income taxes. Illinois’ extensive tax package totaled to a $5 billion increase overall, or an increase of 13.1 percent. Changes enacted in Kansas totaled $580.4 million, or an increase of 7.2 percent. Delaware’s large increase was primarily due to changes to the corporate franchise tax. Delaware experienced a net revenue increase of $178.8 million, or an increase of 5.1 percent.

Tax activity in Illinois and Kansas was unique. Both states faced budget strains this year and performed authoritative legislative action to try to correct them. The Illinois General Assembly overrode Governor Bruce Rauner’s veto to the package of budget bills, which allowed the state to enact its first budget in two years for FY 2018. Similarly, Kansas lawmakers overrode Governor Sam Brownback’s veto on tax increases passed to fix the state’s budget shortfall.

New Jersey reported the largest tax decrease, with a net reduction in revenues of 1.7 percent. This reduction is largely a result of a two-step rate reduction in the general sales and use tax. The first step took effect on Jan. 1, 2017 and the second took effect on Jan. 1, 2018.

Figure 2: 2017 Net State Tax Changes as a Percentage of 2016 Tax Collections

Personal income and motor fuel taxes experienced the largest increases this year. This is primarily a result of Illinois and Kansas’ personal income tax actions. Net increases in motor fuel taxes were driven by California’s motor fuel tax package, which raised $1.8 billion in new revenue.

Sales and use taxes were the only category with a net decrease, which came out to -$1.9 billion. This was driven by California’s temporary sales tax created by Proposition 30 in 2012expiring on Jan. 1, 2017, which resulted in a $1.6 billion revenue loss. New Jersey’s two-step reduction in its sales and use tax rate also contributed to this large 50-state net revenue decrease.  

1. 2017 Net State Tax Changes by Type of Tax

 

Type of Tax

Dollars
(in millions)

Personal Income

$4,333.0

Corporate Income

$335.4

Sales and Use

-$1,915.2

Health Care

$530.0

Tobacco

$47.7

Alcoholic Beverage

$6.9

Motor Fuel

$2,762.0

Miscellaneous

$832.1

Net Change

$6,931.8

Not included: American Samoa, District of Columbia, Guam, Northern Mariana Islands, Puerto Rico and U.S. Virgin Islands.

Source: National Conference of State Legislatures, 2017

Personal Income Taxes | Net Increase: $4.33 Billion

Fourteen states made net reductions to personal income taxes while eight experienced net increases. Examples of personal income tax increases include:

Other states lowered income taxes:

Corporation and Business Taxes | Net Increase: $335.4 Million

Nineteen states experienced revenue changes in corporate and business taxes in 2017. Nine states experienced net increases, while 10 more saw net decreases. Examples of business tax increases include:

Ten states lowered corporate and business taxes:

Sales and Use Taxes | Net Decrease: $1.9 Billion

Fifteen states reduced sales and use taxes, while 11 states raised them. The $1.6 billion sales tax decrease in California was the main driver behind the net revenue loss in this tax category. Examples of sales and use tax decreases include:

Eleven states raised sales and use taxes:

Health Care Provider and Industry Taxes | Net Increase: $530 Million

Six states raised health care provider taxes, while three states reduced them. Actions include:

Tobacco Taxes | Net Increase: $47.7 Million

Three states increased taxes on tobacco products in 2017, and three states lowered them.

Alcohol-Related Taxes | Net Increase: $6.9 Million

Two states increased taxes on alcoholic beverages in 2017.

Motor Fuel Taxes | Net Increase: $2.76 Billion

Eight states increased motor fuel taxes. The majority of the net increase is due to California’s motor fuel tax increase of $1.85 billion. Motor fuel tax increases include:

Miscellaneous Taxes | Net Increase: $832.1 Million

Thirteen states enacted miscellaneous tax changes. Eight states raised taxes and five states cut taxes. Miscellaneous tax decreases include:

Examples of increases include:

Fees |  Net Increase: $1,038.3 Million

In addition to taxes, 20 states relied on new fees and fee increases to help shore up revenues, while three states reduced them.

For example:

Examples of fee decreases include:

Other Revenues | Net Increase: $773.4 Million | Accelerations: $468.9 Million | Other: $304.6 Million

States also made nontax policy changes to impact FY 2018 revenue collections. Several states found new revenue through enhanced compliance efforts or tax amnesty programs.

Examples of accelerations and decelerations:

Examples of other changes include:

Overall, the 50 reporting states made tax, fee and other revenue changes that will result in an anticipated $8.7 billion increase in total revenues for FY 2018.

Tax changes in 2017 as a percentage of 2016 tax collections are listed in Appendix A. State changes by tax type are in Appendix B. Appendix C shows both tax and nontax revenue changes by state. Property tax actions affecting local revenues are discussed in Appendix D. Tax changes by state are displayed in Appendix E and detailed changes by type of tax are presented in Appendix F.

Appendices

Appendix A.2017 Tax Changes as a Percentage of 2016 Tax Collections

 

Jurisdiction

Net Tax Changes
(in millions of dollars)

Percent of 2016 Taxes

Alabama

$0.0

0.0%

Alaska

$0.0

0.0%

Arizona

-$7.6

-0.1%

Arkansas

-$5.0

-0.1%

California

$91.0

0.1%

Colorado

$39.9

0.3%

Connecticut

$427.0

2.8%

Delaware

$178.8

5.1%

Florida

-$83.1

-0.2%

Georgia

-$22.4

-0.1%

Hawaii

-$7.0

-0.1%

Idaho

-$1.1

0.0%

Illinois

$5,079.0

13.1%

Indiana

$42.0

0.2%

Iowa

$1.0

0.0%

Kansas

$580.4

7.2%

Kentucky

-$3.0

0.0%

Louisiana

$8.3

0.1%

Maine

-$26.9

-0.7%

Maryland

-$10.9

-0.1%

Massachusetts

$34.0

0.1%

Michigan

$0.0

0.0%

Minnesota

-$179.6

-0.7%

Mississippi

$0.0

0.0%

Missouri

-$90.3

-0.7%

Montana

$32.7

1.2%

Nebraska

$0.0

0.0%

Nevada

-$0.7

0.0%

New Hampshire

-$11.4

-0.4%

New Jersey

-$544.0

-1.7%

New Mexico

$0.5

0.0%

New York

$20.0

0.0%

North Carolina

-$6.4

0.0%

North Dakota

-$7.5

-0.2%

Ohio

-$19.6

-0.1%

Oklahoma

$286.8

3.4%

Oregon

$265.6

2.4%

Pennsylvania

$220.6

0.6%

Rhode Island

$20.5

0.6%

South Carolina

$29.6

0.3%

South Dakota

$0.0

0.0%

Tennessee

-$148.5

-1.1%

Texas

$0.0

0.0%

Utah

$2.7

0.0%

Vermont

$1.8

0.1%

Virginia

$29.1

0.1%

Washington

$649.6

2.9%

West Virginia

$111.6

2.2%

Wisconsin

-$73.7

-0.4%

Wyoming

$28.0

1.5%

Total

$6,931.8

0.75%

Source: National Conference of State Legislatures’ survey of legislative fiscal offices, 2017; and U.S. Census Bureau, 2017

Appendix B.2017 Tax Changes by Type of Tax (in millions of dollars)

 

Jurisdiction

Personal Income

Corporate Income

Sales & Use

Health Care

Tobacco

Alcoholic Beverage

Motor

Misc.

Total

Alabama

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Alaska

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Arizona

-$7.6

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$7.6

Arkansas

-$4.0

$0.0

-$1.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$5.0

California

-$140.0

$0.0

-$1,622.0

$0.0

$0.0

$0.0

$1,853.0

$0.0

$91.0

Colorado

$0.0

$0.0

-$30.1

$0.0

$0.0

$0.0

$0.0

$70.0

$39.9

Connecticut

$74.2

-$21.1

$0.0

$343.9

$35.0

$0.0

$0.0

-$5.0

$427.0

Delaware

$0.0

$116.1

$0.0

$0.0

$11.9

$5.2

$0.0

$45.6

$178.8

Florida

$0.0

-$10.4

-$72.7

$0.0

$0.0

$0.0

$0.0

$0.0

-$83.1

Georgia

-$5.0

-$12.4

-$5.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$22.4

Hawaii

$0.0

$0.0

-$7.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$7.0

Idaho

-$1.1

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$1.1

Illinois

$4,420.0

$569.0

$90.0

$0.0

$0.0

$0.0

$0.0

$0.0

$5,079.0

Indiana

-$273.8

-$199.0

-$26.3

$0.0

$0.0

$0.0

$541.0

$0.0

$42.0

Iowa

$0.0

$0.0

$1.0

$0.0

$0.0

$0.0

$0.0

$0.0

$1.0

Kansas

$582.0

$0.0

$0.0

$0.0

-$1.6

$0.0

$0.0

$0.0

$580.4

Kentucky

$0.0

$0.0

-$3.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$3.0

Louisiana

$4.8

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$3.5

$8.3

Maine

-$29.2

$0.0

$2.3

$0.0

$0.0

$0.0

$0.0

$0.0

-$26.9

Maryland

-$3.7

-$2.4

-$1.0

$0.0

$0.0

$0.0

-$0.8

-$3.0

-$10.9

Massachusetts

$30.0

$4.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$34.0

Michigan

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Minnesota

-$108.6

$9.0

-$26.8

-$4.0

-$3.7

$0.0

$0.0

-$45.5

-$179.6

Mississippi

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Missouri

-$90.3

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$90.3

Montana

$0.0

$0.0

$0.0

$4.5

$0.0

$0.0

$28.2

$0.0

$32.7

Nebraska

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Nevada

$0.0

-$30.0

$0.0

$0.0

$0.0

$0.0

$0.0

$29.3

-$0.7

New Hampshire

$0.0

-$9.1

$0.0

-$2.3

$0.0

$0.0

$0.0

$0.0

-$11.4

New Jersey

-$75.0

$0.0

-$392.2

$0.0

$0.0

$0.0

$39.6

-$116.4

-$544.0

New Mexico

$0.0

$0.5

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.5

New York

$0.0

$20.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$20.0

North Carolina

$0.0

$0.0

-$6.4

$0.0

$0.0

$0.0

$0.0

$0.0

-$6.4

North Dakota

$0.0

-$7.5

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$7.5

Ohio

-$3.0

$0.0

-$15.2

$0.0

-$1.4

$0.0

$0.0

$0.0

-$19.6

Oklahoma

$0.0

$1.0

$137.4

$0.0

$0.0

$0.0

$0.0

$148.4

$286.8

Oregon

$0.0

$0.0

$0.0

$144.0

$0.0

$0.0

$71.0

$50.6

$265.6

Pennsylvania

$0.0

$9.8

$8.0

$0.0

$0.0

$0.0

$0.0

$202.8

$220.6

Rhode Island

$0.0

$0.0

$0.0

$13.0

$7.5

$0.0

$0.0

$0.0

$20.5

South Carolina

-$41.0

$0.0

$1.7

$0.0

$0.0

$0.0

$68.9

$0.0

$29.6

South Dakota

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Tennessee

-$37.5

-$101.8

-$135.6

$10.3

$0.0

$0.0

$116.2

$0.0

-$148.5

Texas

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Utah

$0.0

$0.0

$1.0

$0.0

$0.0

$1.7

$0.0

$0.0

$2.7

Vermont

$1.8

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$1.8

Virginia

$18.0

$0.0

$11.1

$0.0

$0.0

$0.0

$0.0

$0.0

$29.1

Washington

$0.0

-$1.2

$109.8

$0.0

$0.0

$0.0

$0.0

$541.0

$649.6

West Virginia

$0.0

$0.0

$41.2

$25.5

$0.0

$0.0

$44.9

$0.0

$111.6

Wisconsin

$22.0

$1.0

-$2.4

-$5.0

$0.0

$0.0

$0.0

-$89.3

-$73.7

Wyoming

$0.0

$0.0

$28.0

$0.0

$0.0

$0.0

$0.0

$0.0

$28.0

Total

$4,333.0

$335.4

-$1,915.2

$530.0

$47.7

$6.9

$2,762.0

$832.1

$6,931.8

Source: National Conference of State Legislatures’ survey of legislative fiscal offices, 2017

 

Appendix C.2017 Net Revenue Changes (in millions of dollars)

Jurisdiction

Taxes

Fees

Accelerations

Other

Total Revenue

Alabama

$0.0

$0.0

$0.0

$0.0

$0.0

Alaska

$0.0

$0.0

$0.0

$0.0

$0.0

Arizona

-$7.6

$0.0

$0.0

$0.0

-$7.6

Arkansas

-$5.0

$0.0

$0.0

$0.0

-$5.0

California

$91.0

$646.0

$0.0

$0.0

$737.0

Colorado

$39.9

$0.0

$0.0

$0.0

$39.9

Connecticut

$427.0

$21.7

$0.0

$60.0

$508.7

Delaware

$178.8

$4.6

$0.0

$0.0

$183.4

Florida

-$83.1

-$12.6

$83.9

$0.0

-$11.8

Georgia

-$22.4

-$11.7

$0.0

$0.0

-$34.1

Hawaii

-$7.0

$0.0

$0.0

$0.0

-$7.0

Idaho

-$1.1

$4.0

$0.0

$0.0

$2.9

Illinois

$5,079.0

$0.0

$0.0

$0.0

$5,079.0

Indiana

$42.0

$74.9

$0.0

$0.0

$116.9

Iowa

$1.0

$3.0

$0.0

$0.0

$4.0

Kansas

$580.4

$0.0

-$2.7

$0.0

$577.7

Kentucky

-$3.0

$0.0

$0.0

$0.0

-$3.0

Louisiana

$8.3

$1.0

$0.0

$0.0

$9.3  

Maine

-$26.9

$0.9

$0.0

$0.0

-$26.0

Maryland

-$10.9

$0.0

$0.0

$0.0

-$10.9

Massachusetts

$34.0

$0.0

$125.0

$0.0

$159.0

Michigan

$0.0

$0.0

$0.0

$0.0

$0.0

Minnesota

-$179.6

$6.5

$0.0

$0.0

-$173.1

Mississippi

$0.0

$0.0

$0.0

$0.0

$0.0

Missouri

-$90.3

$0.0

$0.0

$0.0

-$90.3

Montana

$32.7

$27.9

$0.0

$0.0

$60.6

Nebraska

$0.0

$0.0

$0.0

$0.0

$0.0

Nevada

-$0.7

$0.0

$0.0

$0.0

-$0.7

New Hampshire

-$11.4

$0.0

$0.0

$0.0

-$11.4

New Jersey

-$544.0

$0.0

$0.0

$0.0

-$544.0

New Mexico

$0.5

$0.0

$0.0

$0.0

$0.5

New York

$20.0

$19.0

$0.0

$0.0

$39.0

North Carolina

-$6.4

$0.0

$0.0

$0.0

-$6.4

North Dakota

-$7.5

$4.8

$0.0

$0.0

-$2.7

Ohio

-$19.6

$5.3

$0.0

$0.0

-$14.3

Oklahoma

$286.8

$2.7

$12.7

$31.6

$333.8

Oregon

$265.6

$39.5

$0.0

$0.0

$305.1

Pennsylvania

$220.6

$0.0

$0.0

$10.0

$230.6

Rhode Island

$20.5

$0.0

$0.0

$12.5

$33.0

South Carolina

$29.6

$106.2

$0.0

$0.0

$135.8

South Dakota

$0.0

$0.0

$0.0

$0.0

$0.0

Tennessee

-$148.5

$35.4

$0.0

$0.0

-$113.1

Texas

$0.0

-$16.0

$250.0

$70.8

$304.8

Utah

$2.7

$0.0

$0.0

$0.0

$2.7

Vermont

$1.8

$0.0

$0.0

$3.2

$5.0

Virginia

$29.1

$0.0

$0.0

$89.5

$118.6

Washington

$649.6

$0.0

$0.0

$0.0

$649.6

West Virginia

$111.6

$46.0

$0.0

$0.0

$157.6

Wisconsin

-$73.7

$2.1

$0.0

$27.0

-$44.6

Wyoming

$28.0

$27.2

$0.0

$0.0

$55.2

Total

$6,931.8

$1,038.3

$468.9

$304.6

$8,743.6

Source: National Conference of State Legislatures’ survey of legislative fiscal offices, 2017

Property Tax Actions affecting Local Revenues in 2017

Colorado imposed a constitutionally required residential assessment rate decrease. The revenue impact to local governments is estimated to be -$440.1 million.

Florida established a property tax exemption for assisted living facilities. It is expected to produce a revenue loss of $6.9 million in FY 2018.

Florida provided a 50 percent property tax discount for certain affordable housing properties, resulting in a revenue reduction of $25.8 million in FY 2019.

Florida exempted renewable energy source devices from the tangible personal property tax. This change is expected to reduce revenue by $5.3 million in FY 2019.

Florida enacted a property tax exemption for totally and permanently disabled first responders and surviving spouses. The revenue impact is estimated to be -$2.8 million in FY 2018.

Louisiana expanded the property eligible for the inventory tax credit reimbursement for local ad valorem taxes paid to include rental equipment used in the construction, mining, and forestry industries, as well as general rental centers. This tax change is retroactively applicable to tax periods beginning in 2016 and expected to produce a reduction in revenues.

North Dakota created a two-year pilot program for the state assumption of county social service costs, which were previously funded with county property tax revenue. The resulting tax reduction will occur at the county level and will vary based on the number of mills a county was previously levying for social service purposes. This program suspends county levy authority for social services for TY 2017 and TY 2018, which previously could be up to 20 mills.

Ohio modified the current agricultural use valuation, which is estimated to lower revenues by $8.0 million.

Rhode Island reduced the values used to determine local property taxes on cars. The state is projecting a loss of $26 million for FY 2019 from aid paid to cities and towns to account for their lost revenue.

South Carolina lowered the property tax assessment ratio for manufacturing property from 10.5 percent to 9.0 percent over six years. Beginning Jan. 1, 2018, the new rate will be 10.25 percent. Total reimbursement was limited to $85 million per year. Revenues are expected to reduce by $6.3 million for FY 2018.

Tennessee increased the property value threshold for determining the extent of any property tax relief to low-income elderly homeowners, low-income disabled homeowners, and disabled veteran and surviving spouse homeowners. The threshold for determining property tax relief payments increased from $23,500 to $27,000 of the full market value for low-income elderly and disabled homeowners, and from $100,000 to $175,000 for disabled veteran and surviving spouse homeowners. This change is expected to raise revenues by $7.5 million in FY 2018 and FY 2019.

Tennessee revised various provisions concerning the taxation of modern market telecommunication providers (MMTPs), including an imposition of a new privilege tax on MMTPs, and reclassification of MMTPs to industrial and commercial property. This tax change has a local impact of -$14,914,200 in FY 2018.

Wisconsin enacted legislation to perform a state buyout of tax on certain personal property. This tax change is expected to reduce local revenues by $74.4 million in FY 2019.

Wisconsin increased funding for the school levy tax credit. This tax change is expected to reduce local revenues by $87 million in FY 2019.

This appendix shows by state the tax and revenue changes that took place in 2017 regular and special legislative sessions that will affect state revenues in FY 2018 (for most states July 1, 2017 to June 30, 2018) and FY 2019 (for most states July 1, 2018 to June 30, 2019). Tax changes by major tax category appear in Appendix F.

“Tax Revenue” for each state reports the revenue effect of tax actions for the fiscal year.

“Revenue Total” reports the total amount of state revenue change. It combines revenue derived from tax actions with other revenue changes such as fee increases, accelerated and decelerated revenue collections, and other one-time changes.

Changes noted by ** are not reflected in the totals. Recurring changes made for state policy reasons are not reflected in the totals. This appendix does not include changes in unemployment compensation.

The following abbreviations are used:

AGI = Adjusted Gross Income

LLC = Limited Liability Corporation

B&O = Business and Occupation

LLP = Limited Liability Partnership

CPI = Consumer Price Index

NOL = Net Operating Loss

EITC = Earned Income Tax Credits

R&D =   Research and Development

GRF = General Revenue Fund

HMO= Health Maintenance Organization

REIT = Real Estate Investment Trust

IRC = Internal Revenue Code

TY = Tax Year

 

Appendix E. 2017 Tax and Revenue Changes by State

 

 

Revenue
FY 2018
 (in millions)

Revenue
FY 2019  
 (in millions)

Jurisdiction

Description

Alabama

Enacted a credit equal to 20 percent of accrued cost of qualified irrigation equipment, and the cost of constructing a qualified reservoir. This credit becomes effective on Jan. 1, 2018 and terminates on Dec. 31, 2022. The fiscal impact reflects the corporate and individual combined.

N.A.

-$4.3

 

Enacted a Rehabilitation of Historic Structures Credit equal to the lesser amount of the tax credit reservation or 25 percent of actual qualified rehabilitation expenditures. This credit becomes effective on Jan. 1, 2018 and terminates on Dec. 31, 2022. The fiscal impact reflects the corporate, individual and sales tax combined.

N.A.

-$20.0

 

Tax Revenue=

$0.0

-$24.3

 

Revenue Total=

$0.0

-$24.3

Alaska

Enacted legislation to convert purchasable oil tax credits to credits against liability.

N.A.

-$10.0

 

Tax Revenue=

$0.0

-$10.0

 

Revenue Total=

$0.0

-$10.0

Arizona

Increased personal exemption amount in TY 2017 by $50- $150, followed by an additional $50-$150 increase in TY 2018. Beginning in TY 2019, amount is indexed to inflation.

-$6.8

-$6.7

 

Authorized $10 million in angel investment tax credits over four years. Credit authorization is limited to $2.5 million per year for four years. Since credit must be claimed in equal installments over 3 years, the annual revenue impact is approximately -$0.8 million. Over the life of the credit, the cumulative revenue impact is -$10 million.

-$0.8

-$0.8

 

Enacted legislation that allows businesses to subtract expenses incurred to comply with the federal Americans with Disabilities Act (ADA).

N.A.

-$1.3

 

Enacted legislation that exempts aircrafts purchased to be used in a fractional ownership program from sales tax. The revenue impact from this tax change is indeterminate.

Indeterminate

Indeterminate

 

Tax Revenue=

-$7.6

-$8.8

 

 

Revenue Total=

-$7.6

-$8.8

Arkansas

Enacted the Tax Reform and Relief Act of 2017. This lowered income tax rates for Arkansas residents with an income of less than $21,000, as well as lowering the lowest rate in the middle-income tax table. The bill also created the Arkansas Tax Reform and Relief Task Force to examine the topic of tax reform in Arkansas in the upcoming fiscal years.

N.A.

-$25.0

 

Increased the Historical Rehabilitation Tax Credit to 25 percent of total qualified rehabilitation expenses up to the first $1.6 million for projects starting on or after July 1, 2017.

-$1.0

-$1.0

 

Exempted military retirement pay and survivor benefits from taxation beginning in TY 2018.

-$3.0

-$6.0

 

Provided a phase in reduction in the sales and use tax rate for manufacturers' purchases of qualifying repairs, replacements and services over five years.

-$1.0

-$1.0

 

Tax Revenue=

-$5.0

-$33.0

 

Revenue Total=

-$5.0

-$33.0

California

Expanded the Earned Income Tax Credit to provide the credit across a broader income range and include self-employment income.

-$140.0

-$140.0

 

The temporary state sales tax rate created by Proposition 30 of 2012 expired on Jan. 1, 2017. The state general fund rate fell 0.25 percent from 4.19 percent to 3.94 percent.

-$1,600.0

-$1,600.0

 

Expanded and extended partial sales tax exemption for equipment.

-$22.0

-$45.0

 

Increased gasoline excise tax by 12 cents per gallon. Old rate was 18 cents per gallon, new rate is 30 cents per gallon.

$1,252.0

$1,866.0

 

Increased diesel excise tax by 20 cents per gallon and changed from a variable rate to a fixed rate. Old rate was 16 cents per gallon, new rate is 36 cents per gallon.

$401.0

$656.0

 

Increased diesel swap sales tax by 4 percent. Old rate was 0.75 percent, new rate is 5.75 percent.

$200.0

$313.0

 

Tax Revenue=

$91.0

$1,050.0

 

Suspended Fire Prevention Fee effective July 1, 2017 until Jan. 1, 2031. Fees were assessed on rural property owners living in State Responsibility Areas, where the state of California is financially responsible for the prevention and suppression of wildfires. The fees were assessed at a rate of $152.33 per habitable structure or a reduced rate of $117.33.

-$80.0

-$80.0

 

Enacted a Transportation Improvement fee charge, which is in addition to the Motor Vehicle Registration fee and is based on the market value of the vehicle. The amount ranges from $25 to $175 for vehicle owners.

$726.0

$1,453.0

 

Extended Cap-and-Trade Program for greenhouse gas reduction. This requires greenhouse gas emissions to be reduced by at least 40 percent below the 1990 level by 2030. No change in taxpayer liability.

N.A.**

N.A.**

 

Non-Tax Revenue=

$646.0

$1,373.0

 

Revenue Total=

$737.0

$2,423.0

Colorado

Extended existing tax credit for child care expenses that was set to repeal after 2016. Effective date is TY 2017, but may be moved out a year depending on a revenue trigger. No change in taxpayer liability.

$6.1**

-$6.4**

 

Enacted favorable apportionment for certain data centers handling financial transactions.

N.A.

-$2.4

 

 

Allowed for transferability of certain business tax credits for certain manufacturing firms. This change is set to terminate TY 2029.

N.A.

-$5.6

 

Expanded state credit for business personal property tax paid to local governments.

N.A.

-$9.8

 

Exempted recreational marijuana from the 2.90 percent state sales tax. This exemption was passed in conjunction with an increase in the special sales tax on recreational marijuana.

-$30.1

-$33.4

 

Effective July 1, 2017, increased the special sales tax on recreational marijuana from 8 percent to 15 percent.

$70.0

$77.6

 

See Appendix D for property tax actions.

 

 

 

Tax Revenue=

$39.9

$26.4

 

Increased Water Pollution Control fees.

N.A.

$1.1

 

Non-Tax Revenue=

$0.0

$1.1

 

Revenue Total=

$39.9

$27.5

Connecticut

Established an exemption for pension and annuity income from income tax for filers with adjusted gross incomes (AGIs) of certain levels. The elimination is implemented in equal portions over seven tax years, from 2019 through 2025.

-$8.2

-$24.6

 

Expanded the Social Security income tax exemption for applicable adjusted gross income (AGI) thresholds. The expansion is implemented in equal portions over seven tax years, from 2019 through 2026. 

-$7.9

-$16.3

 

Delayed increasing the exemption for teachers' pension income by two years. The exemption had been scheduled to increase from 25 percent to 50 percent for 2017 and subsequent tax years. The budget instead maintains it at 25 percent for 2017 and 2018 and increases it to 50 percent beginning in 2019. No change in taxpayer liability.

$8.0**

$8.0**

 

Limited eligibility for the $200 Property Tax Credit temporarily for tax years 2018 and 2019. The credit is limited to elderly and taxpayers with dependents.

$55.3

$55.3

 

Reduced the state Earned Income Tax Credit from 30 percent to 23 percent of the federal credit.

$35.0

$35.0

 

Allowed a phase-out of the 20 percent Corporate Tax Surcharge on the 7.5 percent rate. Terminates 2019 income year.

-$22.5

-$60.0

 

Repealed the scheduled cap increase on the Neighborhood Assistance Act tax credits. The cap was scheduled to increase from $5 million to $10 million. No change in taxpayer liability.

$5.0**

$5.0**

 

Deferred the first year a FAS 109 Corporate Tax Deduction can be claimed from 2018 to 2021 and extended the deduction over a thirty-year period rather than seven. No change in taxpayer liability.

$20.3**

$34.0**

 

Allowed film and digital media production tax credits to be claimed against the Public Services Companies Tax at a discount.

$1.4

$3.3

 

Increased the excise tax rate on cigarettes from $3.90 to $4.35 per pack and the tax rate on snuff from $1.00 per ounce to $3.00 per ounce.

$35.0

$50.0

 

Modified the hospital provider tax by establishing a formula for calculating the tax rate on inpatient and outpatient hospital services based on the amount of tax revenue specified for the given fiscal year.

$343.9

$343.9

 

Ceased issuing tax credits for certain motion pictures through insurance premium taxes.

$4.0

$4.0

 

Made the three-tier credit cap on insurance premiums tax permanent. No change in taxpayer liability.

$17.4**

$16.0**

 

Reduced the insurance premium tax rate from 1.75 percent to 1.5 percent.

-$11.0

-$22.4

 

Repealed 10 percent Admissions Tax Exemptions for various venues.

$2.0

$2.0

 

Adopted federal exemption levels for Estate and Gift Tax.

$0.0

-$15.6

 

Lowered lifetime cap from $20 million to $15 million on Gift and Estate Tax.

$0.0

$0.0

 

Tax Revenue=

$427.0

$354.6

 

Imposed a 25 cent fee on ridesharing services (e.g., Uber and Lyft) on each ride originating in Connecticut.

$3.0

$5.0

 

Established a $35 fee for auto trade-ins payable by the dealer.

$2.6

$5.3

 

Increased motor vehicle registration fee by $10 to support the new "Passport to Parks" fund.

$8.0

$16.0

 

Increased the state fee for criminal history record checks from $50 to $75.

$1.7

$2.6

 

Increased state fees to cover administrative costs per study and recommendation by Office of Policy and Management.

N.A.

$20.0

 

Increased the municipal recording fee from $3 to $10 with the state General Fund retaining $4.

$1.2

$1.7

 

Increased registration fee for broker-dealers and investment advisers by $25.

$5.2

$5.2

 

Authorized Department of Revenue Services (DRS) "Fresh Start" Tax Collection Initiative. The initiative consists of the following activities: 1) Extensive targeted taxpayer outreach and a limited general awareness promotional campaign; 2) Transfer pricing recovery; 3) Identification of non-filers; 4) Compliance sweeps targeting unregistered and delinquent business taxpayers; 5) Sales and use tax desk audits driven by more frequent permit renewal; 6) Expanded data matching and financial institutions records matching; and 7) Tax resolution and payment under structured offers of compromise.

$60.0

$25.0

 

Non-Tax Revenue=

$81.7

$80.8

 

Revenue Total=

$508.7

$435.4

Delaware

Enacted changes to the corporate franchise tax. Increased the maximum annual franchise tax from $180,000 to $200,000 and established a new $250,000 annual tax tier for "large corporate filers.” Also, increased the late filing penalty from $300 to $500.

$116.1

$116.1

 

Added vapor as a type of tobacco product and increased tobacco related taxes. The tax on cigarettes increased from $1.60 to $2.10 per pack and the tax on all tobacco products (other than vapor products, moist snuff, and cigarettes) increased from 15 percent of the wholesale price to 30 percent of the wholesale price. This bill also imposed tax of 5 cents per fluid millimeter of vapor product, and increased the tax on moist snuff from 54 cents per ounce to 92 cents per ounce. Finally, the bill increased the fees charged for retail tobacco product licenses.

$11.9

$17.8

 

Increased the alcoholic beverage tax rates for beer, wine, and spirits containing more than 25 percent ethyl alcohol by volume. The rate for beer was increased by 1 cent per 12-ounce can; wine, 3 cents per 5-ounce serving; and spirits, 15 cents per 750 mL bottle.

$5.2

$7.2

 

Eliminated the Estate Tax, effective Dec. 31, 2017. The estimated revenue loss is -$3.75 million in FY 2019 and -$5 million in FY 2020.

N.A.

-$3.8

 

Increased the real estate transfer tax received by the state by 1.0 percent, effective Aug. 1, 2017. The Real Estate Transfer Tax is imposed on real estate transactions at the time of document recordings with each County Recorder of Deeds Office.

$45.6

$72.9

 

Tax Revenue=

$178.8

$210.2

 

Implemented an across-the-board increase to the filing fees associated with the Department of Insurance filings.

$4.6

$4.6

 

Non-Tax Revenue=

$4.6

$4.6

 

Revenue Total=

$183.4

$214.8

Florida

Increased the corporate income tax credit for brownfield cleanup by $5 million per year.

-$5.0

-$5.0

 

Increased the corporate income tax credit for research expenses for calendar year 2018 from $9 million to $16.5 million.

-$5.4

-$2.1

 

Extended the corporate income tax credit for community contributions indefinitely at $14 million per year. It was originally set to expire after FY 2019. No change in taxpayer liability.

$0.0**

-$14.0**

 

Enacted a sales tax exemption for resale of admissions to tax-exempt entity.

-$1.2

-$3.1

 

Enacted a sales tax exemption for certain animal and aquaculture health care products.

-$2.7

-$2.7

 

Created a back-to-school sales tax holiday for certain clothing, school supplies, and computers.

-$33.2

N.A.

 

Reduced the sales tax rate on rental of real property from 6 percent to 5.8 percent.

-$25.4

-$63.9

 

Enacted a disaster preparedness sales tax holiday from June 1 through June 7, 2018.

-$4.5

N.A.

 

Established a sales tax exemption for construction materials in rural areas of opportunity.

N.A.

-$6.0

 

Established a sales tax exemption for feminine hygiene products.

-$4.8

-$11.3

 

Established a sales tax and gross receipts tax exemption for data center property meeting certain criteria and constructed between July 1, 2017 and June 30, 2022.

-$0.9

-$1.4

 

See Appendix D for property tax actions.

 

 

 

Tax Revenue=

-$83.1

-$95.5

 

Reduced the surcharge from 1.5 percent to 1.0 percent on building permits.

-$2.9

-$2.9

 

Reduced or repealed building inspection fees.

-$5.6

-$6.5

 

Repealed various Department of Agriculture and Consumer Services fees.

-$2.2

-$2.2

 

Repealed the supplemental pesticide registration fee, which was $630 per brand biennially.

-$1.9

-$1.9

 

Accelerated corporate income tax payments. Made end-of-fiscal year payments due Friday before June 30, which falls on a weekend, rather than due the Monday after.

$83.9

N.A.

 

Non-Tax Revenue=

$71.3

-$13.5

 

Revenue Total=

-$11.8

-$109.0

Georgia

Enacted a Historic Downtown Revitalization Tax Credit. This credit applies to any certified investors who acquire and develop property in a revitalization zone on or after Jan. 1, 2018. Additional credits are available for each new full-time equivalent job created in this district.  This credit will be terminated on Dec. 31, 2027 unless reauthorized by the legislature prior to this date. These credits can be used toward corporate or personal income tax liability.

No Estimate

-$1.0

 

Created a nonrefundable nontransferable income tax credit for certain expenditures by a production company for live or recorded musical or theatrical performances. A qualified production company will receive a tax credit equal to 15 percent of qualified expenditures with the option of an additional 5 percent credit for qualified production expenditures occurring in designated counties. These credits are available beginning on Jan. 1, 2018 and is set to expire on Jan. 1, 2023. These credits can be used toward corporate or personal income tax liability.

-$1.1

-$5.0

 

Enacted the Georgia Entertainment Industry Post-Production Investment Act. This act provides a 20 percent income tax credit on all qualified postproduction expenditures incurred by a post-production company. An additional 10 percent credit is allowed if the qualified postproduction expenditures were incurred in the state of Georgia, and an additional 5 percent credit is allowed if these expenditures occurred in a designated county. These credits are available beginning Jan. 1, 2018 and will expire on Jan. 1, 2023. These credits can be used toward corporate or personal income tax liability. Additionally, this act modified and removed the sunset date for income tax credits for interactive entertainment companies.

-$5.1

-$14.8

 

Enacted income tax credits for qualified education donations to the Public Education Innovation Fund. These credits can be used toward personal or corporate income tax liability. The credits are set to expire on Dec. 31, 2020.

-$5.0

-$5.0

 

Increased the tax credits available to individuals or entities that make contributions to rural hospital organizations. This legislation also changed the program cap to a flat $60 million per tax year, rather than $50 million in FY 2017, $60 million in FY 2018, and $90 million in FY 2019. These credits can be used towards either personal or corporate income tax liability. The credits are set to expire on Dec. 31, 2019.

-$5.0

$5.0

 

Eliminated the corporate net worth tax on corporations with a value less than $100,000.

-$1.2

-$4.3

 

Enacted a sales and use tax exemption on materials used to maintain concrete mixer trucks.

-$1.0

-$1.0

 

Enacted sales tax exemptions on building materials for the expansion of theatres containing an art museum and symphonic hall and tickets to fine arts performances. These exemptions are set to expire Jan. 1, 2019.

-$4.0

-$4.0

 

Tax Revenue =

-$22.4

-$30.1

 

Changed the Title Ad Valorem Tax. Now taxpayers pay on total amount of payments for a leased vehicle rather than value of the leased vehicle.

-$23.3

-$55.4

 

Increased the commercial driver’s license fee from $20 to $32.

No Estimate

No Estimate

 

Increased various hunting and fishing licenses fees.

$11.6

$11.6

 

Extended the hospital provider fee through June 30, 2020. No change in taxpayer liability.

$310.0**

$336.0**

 

Non-Tax Revenue=

-$11.7

-$43.8

 

Total=

-$34.1

-$73.9

Hawaii

Added three new income tax brackets for married taxpayers filing jointly with taxable income over $300,000, heads of household with taxable income over $225,000, and single individuals over $150,000. These brackets are set at 9, 10 and 11 percent. Previously the top marginal income tax rate was 8.25 percent.

N.A.

$50.7

 

Enacted an Earned Income Tax Credit. The credit is set to expire Dec. 31, 2022. Qualifying individuals can claim a nonrefundable state earned income tax credit equal to 20 percent of the federal earned income tax credit.

N.A.

-$16.7

 

Made food tax credit permanent. No change in taxpayer liability.

N.A.**

-$6.5**

 

Extended the state film tax credit until 2026. Capped the annual amount of credits that may be claimed at $35 million. No change in taxpayer liability.

N.A.**

-$35.0**

 

Enacted a general excise tax exemption for qualified affordable housing projects until June 30, 2022.

-$7.0

-$7.0

 

Tax Revenue=

-$7.0

$27.0

 

Revenue Total=

-$7.0

$27.0

Idaho

Increased the credit for applicable college savings program.

-$1.1

-$1.1

 

Tax Revenue=

-$1.1

-$1.1

 

Removed additional registration fees for gasoline hybrid vehicles. The old rate was $75.

-$1.0

-$1.0

 

Increased various resident and nonresident hunting license fees.

$2.0

$2.0

 

Increased various resident and nonresident fishing license fees.

$3.0

$3.0

 

Non-Tax Revenue=

$4.0

$4.0

 

Revenue Total=

$2.9

$2.9

Illinois

Increased personal income tax rate from a flat rate of 3.75 percent to a flat rate of 4.95 percent.

$4,453.0

N.A.

 

Set income limits on certain credits and exemptions.

$96.0

N.A.

 

Increased the state's Earned Income Tax Credit (EITC). For TY 2017 the EITC is increased to 14 percent of the federal EITC. Beginning on or after Jan. 1, 2018 the state's EITC is increased to 18 percent of the federal credit.

-$94.0

N.A.

 

Increased the K-12 Education Expense Credit for $750 per family for all qualifying families. Effective Dec. 31, 2017, this credit is not allowed if the taxpayer's adjusted gross income for the taxable year exceeds $500,000 (married filing jointly) or $250,000 for all other returns.

-$35.0

N.A.

 

Increased corporate income tax rate from 5.25 percent to 7.0 percent.

$514.0

N.A.

 

Closed several corporate tax loopholes.

$125.0

N.A.

 

Reinstated the Research and Development Credit. The credit is retroactive for TY 2016.

-$70.0

N.A.

 

Eliminated the current 20 percent exemption from sales of gasohol. The exemptions for ethanol and biodiesel fuels are extended through Dec. 31, 2023.

$100.0

N.A.

 

 

Expanded the Manufacturing and Assembling Machinery and Equipment exemption to include graphic arts machinery and equipment.

-$10.0

N.A.

 

 

Tax Revenue=

$5,079.0

$0.0

 

Revenue Total=

$5,079.0

$0.0

Indiana

Increased deduction for Military Retirement and Survivor's Benefits.

N.A.

-$2.8

 

Extended an existing state and local NBA All-Star Game tax exemption. All property owned by the National Basketball Association (NBA) and its affiliates, revenue of the NBA and its affiliates, expenditures and transactions of the NBA and its affiliates in connection with a NBA All-Star Weekend, and resulting from holding the associated events in Indiana or making preparatory advance visits to Indiana in connection with a NBA All-Star Weekend, are exempt from all state and local taxes. The exemption does not apply to salaries and wages paid to employees of the NBA and its affiliates that are ordinarily subject to Indiana state and local income taxation. If a NBA All-Star weekend is held in Indiana, the foregone revenue could be significant. However, this could be offset by a potentially significant increase in other tax revenue generated from the events. No change in taxpayer liability.

N.A.**

N.A.**

 

Increased the cap for School Scholarship Income Tax Credits. This credit is available for individuals or corporations who donate to scholarship granting organizations. Cap is increased to $12.5 million in Fiscal Year 2018, and to $14 million each year thereafter.

-$1.8

-$3.3

 

Removed the Dec. 31, 2020 sunset date for the Venture Capital Investment tax credit. No change in taxpayer liability.

N.A.**

N.A.**

 

Removed the Dec. 31, 2020 sunset date for the Hoosier Business Investment tax credit. No change in taxpayer liability.

N.A.**

N.A.**

 

Expanded the eligibility for the dependent exemption. Change was originally enacted in 2016.

N.A.

-$4.7

 

Phased-in rate reduction on the individual income tax. This change was originally enacted in 2013. Cut the rate from 3.4 percent in TY 2014 to 3.23 percent in TY 2017.

-$272.0

-$289.0

 

Continued to phase in the reduction of the corporate income tax from 8.5 percent in FY 2012 to 6.0 percent in FY 2018.  In the 2014 session the corporate income tax rate was further phased down from 6.5 percent in FY 2016 to 6.0 percent in FY 2018 and 5.75 percent in FY 2019. The rate will continue to phase down to 4.9 percent in FY 2022 and thereafter. The phased-down rate becomes effective at the beginning of each fiscal year.

-$176.0

-$201.0

 

Continued to phase in the reduction of the Financial Institution Tax (FIT) from 8.5 percent in Calendar Year 2013 to 6.5 percent in CY 2017. The law also changed the distributions of the FIT revenues. In the 2014 session the FIT rate was further phased down from 6.5 percent in CY 2018, 6.25 percent in CY 2019, and 4.9 percent in CY 2023 and thereafter. The new phased-down rate becomes effective at the beginning of each calendar year. Enacted a requirement that a person who rents rooms in a house, condo or apartment for less than 30 days must collect sales tax.

-$23.0

-$24.0

 

Enacted a sales tax exemption for components of a drainage water management system designed to facilitate controlled water drainage on agricultural land used for crop production. The fiscal impact for this exemption ranges from -$0.1 million to -$2.4 million annually.

-$1.3

-$1.3

 

Expanded the current sales tax exemption for prosthetic devices to include devices that are acquired without a prescription or drug order if they are fitted or dispensed by a person licensed or registered for that purpose. The fiscal impact for this change is indeterminable, but may reduce sales tax revenue by a significant amount.

Indeterminable, but potentially a significant decrease

Indeterminable, but potentially a significant decrease

 

Exempted special fuels from use tax.

-$25.0

-$27.8

 

Increased gasoline tax by 10 cents per gallon from 18 cents per gallon to 28 cents per gallon and provided for an annual adjustment for inflation.

$310.0

$336.0

 

Increased special fuels tax by 10 cents per gallon from 16 cents per gallon to 26 cents per gallon and provided for an annual adjustment for inflation.

$119.0

$132.0

 

Increased motor carrier surcharge tax by 10 cents per gallon from 11 cents per gallon to 21 cents per gallon and provided for an annual adjustment for inflation.

$112.0

$120.0

 

Tax Revenue=

$42.0

$34.2

 

Changed the effective date from July 1, 2017, to July 1, 2018, of a provision that will require a travel facilitator to collect sales tax and make the rental of rooms in a house, condominium, or apartment for less than 30 days subject to sales tax.

Indeterminable, but potentially a significant decrease

$0.0

 

Enacted a $15 Transportation Improvement Fee that is assessed on all passenger vehicles.

$43.0

$85.0

 

Increased fee for International Registration Plan by 25 percent.

$22.0

$22.0

 

Enacted a supplemental registration fee for electric and hybrid vehicles. The fee is assessed at $150 for electric vehicles and $50 for hybrid vehicles.

$3.6

$8.1

 

Exempted trailers from registration fees. Old fee was assessed at $8.75/trailer.

-$0.5

-$0.5

 

Increased fee for automated record keeping from $5 to $20.

$6.8

$6.8

 

Non-Tax Revenue=

$74.9

$121.4

 

Revenue Total=

$116.9

$155.6

Iowa

Enacted legislation subjecting online e-cigarette sales to the state sales tax rate of 6.0 percent.

$1.0

$1.1

 

Tax Revenue=

$1.0

$1.1

 

Modified the unsecured appearance bond fee, fine, and surcharge. Provides that an unsecured appearance bond for state or local traffic violations, and for scheduled violations under Iowa Code sections 805.8A, 805.8B, and 805.8C, shall equal 1.5 times the minimum fine and applicable surcharge, plus court costs.

$3.0

$3.0

 

Non-Tax Revenue=

$3.0

$3.0

 

Revenue Total=

$4.0

$4.1

Kansas

Enacted personal income tax reform, which is expected to increase general fund revenue by $591 million in FY 2018 and $633 million in FY 2019. The bill repealed the exemption for non-wage business income, restored the third income tax bracket, and increased the rates of each bracket to 2.9 percent, 4.9 percent and 5.2 percent, respectively. Previous law provided for two brackets at 2.7 percent and 4.6 percent. $270.1 million of the revenue increase in FY 2018 is attributable to the repeal of the non-wage personal income tax exemption, and $320.9 percent of the revenue increase in FY 2018 is attributable to the restoration of the third income tax bracket and rate increase.

$591.0

 

$633.0

 

 

Expanded the Tax Credit for Low Income Students Scholarship Program.

-$9.0

-$9.0

 

Delayed the effective date and reduced the rate of tax on electronic cigarettes. Under previous law, a tax rate of $.0.20 per milliliter of consumable material in electronic cigarettes was imposed as of Jan. 1, 2017. This effective date was delayed to July 1, 2017 and the rate was reduced to 5 cents per milliliter.

-$1.6

-$1.5

 

Reduced insurance premiums taxes as a result of a change in law providing that a privilege fee on HMOs will no longer be deposited in the State General Fund.

N.A.

-$72.5

 

Tax Revenue=

$580.4

$550.0

 

Decelerated the sales tax remittance schedule for a number of retailers.

-$2.7

$0.0

 

Non-Tax Revenue=

-$2.7

$0.0

 

Revenue Total=

$577.7

$550.0

Kentucky

Enacted sales and use tax credit for the purchase of aircraft fuel. The tax credit is equal to the amount of sales tax due exceeding $1 million each fiscal year. Applies to individuals who contract with one or more certificated air carriers for the transportation by of persons, property, or mail by air.

-$3.0

-$3.0

 

Tax Revenue=

-$3.0

-$3.0

 

Revenue Total=

-$3.0

-$3.0

Louisiana

Eliminated the nonrefundable per-child tax credit for K-12 educational expenses. The credit is currently $18 per child, but scheduled to return to $25 per child on July 1, 2018.

$9.2

$12.8

 

Modified the alternative fuel vehicle conversion tax credit. Lowered the credit rate to 30 percent. This change made the credit nonrefundable and limited the applicability of the credit with regard to fueling equipment.

$0.6

$1.6

 

 

Provided an exclusion from the gross income of an out-of-state individual or business for the income earned while in the state providing defined disaster response or emergency related services.

N.A.

Decrease

 

Modified the tax credits available for contributions to student tuition organizations that fund private school tuition costs for participating students. The credit is nonrefundable (from a rebate), and made available only to contributors that file a state income tax return.

N.A.

Increase

 

Enacted legislation that provides for the payment of tax credits that had been denied to taxpayers claiming credit for solar energy systems as a result of aggregate credit caps in place when they filed their tax returns. Credits are due to be paid in three equal installments beginning in FY 2018.

-$5.0

-$5.0

 

Modified the existing tax credit available to physicians and dentists who are currently located in certain underserved areas of the state (up to $3,600 currently, up to $5,000 after July 1, 2018). Changed the definition of underserved areas and allowed eligibility for nurse practitioners. Total program is capped at $1.5 million per year and set to terminate after Dec. 31, 2020.

N.A.

-$1.0

 

Revised the film tax credit program. Credit claims are continued at a maximum of $180 million per year indefinitely, although under-realizations in one year can increase the cap in the following year. Credit issuances are capped at $150 million per year. Direct buyback of credits is increased from 85 to 90 percent of face value and full-face value of buyback credits is to be charged against the claims payment cap. No new credits can be issued from July 1, 2025.

Stabilize costs, no estimate

Stabilize costs, no estimate

 

Revised the musical and theatrical production tax credit program. Credit issuances are capped at $10 million per year, although under-issuance in one year can increase the issuance cap in the following year. No new credits can be issued from July 1, 2025.

Stabilize costs, no estimate

Stabilize costs, no estimate

 

Extended participant entry into the Enterprise Zone program by four years from July 1, 2017 to July 1, 2021. Net receipts will be lower than they would otherwise be as program participation continues. No change in taxpayer liability.

Decrease**

Decrease**

 

Terminated participant entry into the corporate tax apportionment program, the angel investor tax credit, the urban revitalization tax credit program, and accelerated the repeal of the Motion Picture Incentive Act, on either July 2017 or July 1, 2021.

N.A.

Increase

 

Prohibited new participant entry to a number of incentive/subsidy programs ranging from July 1, 2017 to July 1, 2022. Also makes extensive changes to the Quality Jobs Program (QJP) of payroll subsidy. Most of the net revenue gain from the bill comes from changes to QJP that constrain participation in the program. The program is expected to produce a revenue loss of $10.4 million in FY 2020.

N.A.

N.A.

 

Expanded participation and extended the sound recording tax credit program to Jan. 1, 2021. Existing program credit cap of $2.16 million per year is maintained. Participation has never approached cap, but with this bill's expansion of eligible potential participants, credits above historical norm are possible, increasing state fiscal exposure above utilization of the current credit.

N.A.

-$2.0

 

Extended the Tax Free Shopping Program for foreign tourist sales tax exemption, for six more years until July 1, 2023. No change in taxpayer liability.

-$1.2**

-$1.2**

 

Expanded the type of construction contracts that are afforded protection from sales tax increases during the contract period. Substantial exposure to revenue loss is possible.

Decrease

Decrease

 

Enacted legislation that created the Louisiana Uniform Local Sales Tax Board among other provisions. Dedicated up to 1 percent of state sales tax receipts from remote sellers should federal law be passed that required remote sellers to collect and remit state and local sales tax. This tax change is contingent upon federal law.

Decrease

Decrease

 

Re-established a severance tax reduction for wells inactive for at least two years or orphaned for at least five years. Inactive receive a 50 percent tax rate reduction for 10 years, orphans a 75 percent reduction for ten years. Well participation certifications can be delayed in any fiscal years if severance tax receipts from these wells exceeds $15 million, and certifications must be made by June 30, 2023.

N.A.

N.A.

 

Lowered the current Telecommunications Tax for the Deaf to from 5 cents to 4.5 cents per line per month, and expands the applicable base to include wireless services.

$3.5

$4.7

 

See Appendix D for property tax actions.

 

 

 

Tax Revenue=

$8.3

$11.1

 

Altered various license fees, fees for background checks, inspection fees, bed fees, and office of motor vehicle fees.

$1.0

$0.9

 

Non-Tax Revenue=

$1.0

$0.9

 

Revenue Total=

$9.3

$12.0

Maine

Citizens approved Question 2 on the on the November 2016 citizens' initiative, which enacted a 3 percent surcharge on taxable income exceeding $200,000 per year beginning with tax years on or after Jan. 1, 2017. Revenue from this tax is earmarked to a fund established to improve the ability of the state to reach the annual target of 55 percent for the state share of funding K-12 public education.

$70.9

-$2.2

 

 

The Maine Legislature repealed the 3 percent surcharge on taxable income exceeding $200,000 per year during the 2017 legislative session. This surcharge was enacted after the approval of Question 2 on the November 2016 citizens' initiatives.

-$100.1

$2.5

 

Question 1 approved on the November 2016 citizen's ballot initiative legalized the possession and use of marijuana by individuals 21 years of age or older. This bill places a 10 percent sales tax on sales of retail marijuana and retail marijuana products.

$2.3

$10.5

 

Tax Revenue=

-$26.9

$10.7

 

Increased various driver exam fees. Old rates ranged between $5-$30, new rates range between $20-$70.

$0.9

$1.7

 

Non-Tax Revenue=

$0.9

$1.7

 

Revenue Total=

-$26.0

$12.5

Maryland

Enacted a nonrefundable credit equal to 50 percent of qualified expenses, or up to $5,000, to renovate an existing home with accessibility and universal visitability features to assist individuals with disabilities. Revenue reduction is expected to be $1 million annually beginning in FY 2020.

N.A.

N.A.

 

Extended the employer security clearance costs tax credit through Dec. 31, 2021. This tax credit can be used against personal and corporate income tax. No change in taxpayer liability.

N.A.**

-$1.9**

 

Expanded the research and development tax credit. Increased the aggregate amount of credits that may be approved annually from $9 million to $12 million. The incentive can be credited against personal or corporate income tax.

-$2.4

-$2.6

 

Exempted up to $15,000 of certain retirement income from personal income tax. Individual qualifies if the individual is at least 55 years old and the retirement income is attributable to employment as a law enforcement officer or as fire, rescue, or emergency services personnel.

-$3.7

-$3.8

 

Re-established the exemption for qualified mortgage debt relief up to $100,000 ($200,000 if married filing jointly). The exemption is effective from July 1, 2017 to July 1, 2019.

N.A.

N.A.

 

Enhanced expensing and bonus depreciation for all manufacturers for property placed into service on or after Jan. 1, 2019 by conforming state law to the maximum aggregate costs of expensing allowed under Section 179 of the Internal Revenue Code (IRC) and to claim any bonus depreciation amounts provided under Section 168(k) of the IRC. Out-year revenue losses due to IRC conformity equal $30.9 million in FY 2020, $6.8 million in FY 2021, and $4.5 million in FY 2022.

N.A.

N.A.

 

Enacted a refundable credit for qualifying new manufacturing business in certain counties or existing manufacturers in certain counties who create the required number of qualified positions at eligible manufacturing facilities. Credit for up to 10 years is equal to the total wages paid for qualified positions multiplied by 5.75 percent. The total amount of credits issued each fiscal year generally cannot exceed $9 million.

N.A.

-$9.0

 

Enacted an exemption for the first $40 of the taxable price of any backpack or bookbag purchased during the annual tax-free period for back-to-school shopping. Fiscal impact is indeterminate but under one set of assumptions, revenue decrease is estimated to exceed $1 million annually.

-$1.0

-$1.0

 

Authorized a refund for purchases of personal property and/or services for use at a manufacturing facility by qualifying manufacturers made on or after Jan. 1, 2018. Total amount of refunds issued in each fiscal year generally cannot exceed $1.0 million.

N.A.

-$1.0

 

Provided for a refund of motor fuel taxes paid for use by a vehicle that is used only to transport the public via demand response trips.

-$0.8

-$1.1

 

Extended the qualified plug-in electric vehicle excise tax credit through FY 2020. Termination date is now July 1, 2020. The change also increased the annual amount of incentives available in each fiscal year, but incentive value generally decreased and eligibility requirements were altered.

-$3.0

-$3.0

 

Enacted an exemption for 100 percent of the tax imposed on real property owned by a qualifying business at a qualifying manufacturing facility beginning in FY 2018. Revenue decrease estimated to equal $1 million by FY 2022.

N.A.

-$0.4

 

Tax Revenue=

-$10.9

-$21.9

 

Extended the current fee of 8 cents per barrel assessed on oil transferred into the state until July 1, 2019. Beginning July 1, 2019 the fee is assessed at 5 cents per barrel. These fees are used to fund the Maryland Oil Disaster Containment, Clean-Up and Contingency Fund and Oil Contaminated Site Environmental Cleanup Fund. No change in taxpayer liability.

-$2.0**

-$2.6**

 

Non-Tax Revenue=

$0.0

$0.0

 

Revenue Total=

-$10.9

-$21.9

 

Massachusetts

Enacted an Earned Income Tax Credit (EITC) exclusion for out-of-state residents. These are persons who are nonresidents for the entirety of the taxable year. Part EITC Out-of-State Resident Exclusion. With respect to a person who is a nonresident for part of the taxable year, the credit shall be limited to 23 percent of the federal credit, multiplied by the fraction of the year which the person resided in Massachusetts.

$10.0

TBD

 

Updated 1099-K reporting. Tax now applies to individuals who earn more than $600 from credit or debit card transactions annually. Previously relevant to those making at least $20,000 from 200 or more transactions annually.

$20.0

TBD

 

Enacted a Veterans Hire Tax Credit. This credit allows entities that hire veterans a tax credit equal to $2,000 for each qualified veteran hired.

-$1.0

-$1.0

 

Placed a cap on the Life Science Tax Incentive.

$5.0

N.A.

 

Tax Revenue=

$34.0

-$1.0

 

Enacted regulations for accelerated third party sales tax remittance. The previous collection schedule was at the end of month, the new collection schedule is to be determined by the department of revenue.

$125.0

-$125.0

 

Non-Tax Revenue=

$125.0

-$125.0

 

Revenue Total=

$159.0

-$126.0

Michigan

Enacted a transformational brownfield tax capture. Wages paid to individuals who are physically present and working on the construction, renovation, or other improvement of eligible property as part of an eligible activity within a transformational brownfield. The fiscal impact is unknown. When combined with the value of sales and use tax exemptions, the program is capped at a total of $200 million over all years.

Unknown

Unknown

 

Enacted a transformational brownfield tax capture. This resulted in a base change of 50 percent of the incremental increase in income tax revenue from individuals domiciled within eligible property subject to a transformational brownfield plan. The fiscal impact of this is unknown. It is capped at 20 years after captures begin, which can be up to five years after the property is approved for inclusion in transformational brownfield plan, and combined with the incremental withholding tax capture provisions, it may not exceed $40 million per year, or $800 million over all years.

Unknown

Unknown

 

Enacted a transformational brownfield tax capture. This resulted in a base change of 50 percent of the incremental increase in income tax revenue withholding from individuals employed within eligible property subject to a transformational brownfield plan. The fiscal impact is unknown. It is capped at 20 years after captures begin, which can be up to 5 years after the property is approved for inclusion in transformational brownfield plan, and combined with the incremental income tax capture provisions, it may not exceed $40 million per year, or $800 million over all years.

Unknown

Unknown

 

Enacted a transformational brownfield tax capture. Sales of tangible personal property for use in an eligible activity on eligible property within a transformational brownfield. The fiscal impact is unknown. When combined with the construction period income tax capture, it is capped at a total of $200 million over all years.

Unknown

Unknown

 

Enacted a transformational brownfield tax capture. Tax capture attributable to certified new jobs at an eligible business. Income tax withholding attributable to certified new jobs.

Unknown

Unknown

 

Tax Revenue=

$0.0

$0.0

 

Revenue Total=

$0.0

$0.0

Minnesota

Updated federal conformity relating to the exclusion for individuals related to charity, transfer up to $100,000 from a traditional IRA or Roth IRA directly to a qualified charity is allowed for individuals age 70 1/2 years.

-$3.8

-$4.0

 

Conformed to the federal tax code's Educator Classroom Expense Deduction up to $250.

-$1.5

-$1.6

 

Updated conformity to IRC Section 179 Expensing, 80 percent addback and five-year recovery.

$9.1

$6.5

 

Updated IRC conformity for personal income taxes. Conformed to 50 percent bonus depreciation for TY 2015 to TY 2017 and 40 percent from TY 2018 and 30 percent for TY 2019 using the 80 percent addback and five-year recovery method.

$7.2

$3.5

 

Updated IRC conformity for 15-year straight line depreciation for leasehold, restaurant and retail improvements and new restaurants.

-$0.9

-$1.2

 

Updated IRC conformity by increasing the phase-out for married joint filers claiming the MN Working Family credit to match the increased phase-out for married joint filers for the federal earned income tax credit.

$0.0

-$7.1

 

Updated IRC conformity relating to treatment of partnerships interests created by gifts.

$1.8

$1.6

 

Provided a subtraction for Social Security benefits. The subtraction ranges from $2,250 to $4,500, depending on filing status and income.

-$57.0

-$60.2

 

Provided a subtraction for Section 529 Plans. A single taxpayer may subtract up to $1,500, $3,000 for married joint filers, of contributions to any state section 529 college savings plan or prepaid tuition plan.

-$2.5

-$2.6

 

Enacted a nonrefundable Section 529 Plan Tax Credit for contribution to a college savings account established under section 529 of the IRC. The credit equals 50 percent of contributions, up to a maximum of $500.

-$7.5

-$7.8

 

Created a nonrefundable Student Loan Tax Credit for residents who make payments on their own postsecondary education loans.

-$26.9

-$27.8

 

Enacted a nonrefundable Beginning Farmer Tax Credit. The credit is set to expire after TY 2023.

$0.0

-$5.0

 

Created a refundable tax credit for taxes paid to Wisconsin. The tax credit expires if an income tax reciprocity agreement is in effect.

-$8.2

-$5.8

 

Modified the refundable Working Family Credit to allow on reservation earnings of enrolled members of an American Indian Tribe to apply.

-$1.6

-$1.6

 

Modified the refundable Child and Dependent Care Credit to allow start of phase-out to mirror federal child and dependent care credit. ($50,000 FAGI)

-$16.9

-$18.9

 

Updated IRC conformity for Section 179 Expensing, 80 percent addback and five-year recovery for corporate income taxes.

$3.4

$2.5

 

Updated IRC conformity for corporate income taxes. Conformed to 50 percent bonus depreciation for TY 2015 to TY 2017 and 40 percent from TY 2018 and 30 percent for TY 2019 using the 80 percent addback and five- year recovery method. Effective Tax Year 2015 and expires after Tax Year 2019.

$15.2

$7.3

 

Updated IRC conformity in corporate income taxes related to 15-year straight line depreciation for leasehold, restaurant and retail improvements and new restaurants.

-$1.7

-$2.4

 

Updated IRC conformity by reducing the recognition period for S corporation built in gains.

-$1.2

-$0.8

 

Updated IRC conformity relating to the exception under Subpart F for active financing income.

-$4.3

-$4.4

 

Modified the Research and Development Credit. The second-tier rate increased to 4 percent.

-$10.6

-$8.4

 

Modified the definition of "financial institutions" to include non-corporate entities.

$5.0

$5.0

 

Modified the definition of the term "insurance company."

$2.0

$2.0

 

Modified the treatment of gain on certain installment sales of an interest in a Minnesota pass-through entity to be recognized on an accelerated basis.

$1.1

$2.2

 

Modified an exemption for qualified businesses in Greater MN by providing for a refund.

-$5.0

-$5.0

 

Expanded exemption for telecommunication or pay television services machinery and equipment to include fiber and conduit.

-$3.2

-$3.7

 

Expanded the exemption for Super Bowl admission to include parking and related events sponsored by the NFL, affiliates, or the Minnesota Super Bowl Host Committee. Effective July 1, 2017 and expires after March 1, 2018.

-$1.0

$0.0

 

Created an exemption on suite licenses and stadium builder licenses.

-$3.3

-$3.4

 

Enacted an exemption on certain special fuels.

-$2.4

-$2.8

 

Created an exemption on nontaxable food and beverages sold through vending machines.

-$1.8

-$2.0

 

Modified the exemption for "building materials and supplies used in certain capital projects" to include St. Paul Soccer Stadium and infrastructure.

-$1.3

$0.9

 

Modified the exemption for "building materials and supplies used in certain capital projects" by refund for construction materials for the City of Plymouth. This change is retroactive to Jan. 1, 2013.

-$1.8

-$0.8

 

Modified the definition of real property and tangible personal property for determining when sales and use tax is due.

-$7.1

-$7.3

 

Repealed annual indexing on cigarette tax rates.

-$1.8

-$7.2

 

Repealed annual indexing on moist snuff tax rates.

-$0.3

-$1.2

 

Reduced tax rates on premium cigars.

-$1.6

-$1.7

 

Exempted supplemental or enhanced medical assistance payments made through authorized intergovernmental transfers from the health care provider tax. This tax change is set to terminate June 30, 2020.

-$4.0

-$2.1

 

Modified the Estate Tax exclusion by increasing it to $3 million with a four-year phase-in.

-$15.2

-$19.2

 

Exempted the first $100,000 on commercial/industrial market value, plus removed the inflator, on the statewide general property tax levy.

-$30.3

-$65.2

 

Enacted a School Building Bond Agricultural Credit equal to 40 percent of the tax on the property attributable to school district bonded debt levies.

$0.0

-$35.5

 

Tax Revenue=

-$179.6

-$285.1

 

Lowered the Civil Court Filing Fee from $310 to $285.

-$2.1

-$2.8

 

Increased the annual and daily state park entrance pass fees. Annual fees increased from $25 to $35 and daily fees increased from $5 to $7.

$2.3

$2.8

 

Increased the snowmobile registration fee from $75 to $105 for a three-year pass.

$2.0

$2.0

 

Increased fishing and hunting license fees. Annual fishing license fees increased from $22 to $25. Hunting license fee rates increased by about 13 percent.

$4.2

$8.0

 

Reduced various construction code fees.

-$2.6

-$2.6

 

Established a securities registration fee for investment advisors and increased the securities registration fee for broker dealers. Investment advisor securities registration fee is $50 and increased the fee from $50 to $65 for broker dealers.

$2.7

$2.7

 

Non-Tax Revenue=

$6.5

$10.1

 

Revenue Total=

-$173.1

-$275.0

Mississippi

Created a new income tax deduction for contributions made to the The Mississippi Achieving a Better Life Experience (ABLE) accounts. The program was established for the purpose of encouraging saving private funds to pay for expenses of eligible individuals with disabilities.

Unable to determine the fiscal impact

Unable to determine the fiscal impact

 

Enacted a sales tax exemption for frac sand producers when building a new facility, and an ongoing exemption for utilities used in operations.

Unable to determine the fiscal impact

Unable to determine the fiscal impact

 

Enacted an 8 percent tax on fantasy sports operator's net Mississippi revenue.

Unable to determine the fiscal impact

Unable to determine the fiscal impact

 

Tax Revenue=

$0.0

$0.0

 

Revenue Total=

$0.0

$0.0

Missouri

Enacted legislation that authorizes an income tax deduction for 50 percent of the net capital gain from the sale or exchange of employer securities of a Missouri corporation to a qualified Missouri employee stock ownership plan (ESOP).

-$10.3

$0.0

 

 

As of Jan. 1, 2017 the maximum individual income tax rate is lowered from 6.0 percent to 5.9 percent. This is a result of legislation passed in 2014 that reduced the maximum individual income tax rate from 6 percent to 5.5 percent, in a series of incremental 0.1 percent steps. The estimated fiscal impact to the state when the rate reduction is fully phased in on Jan. 1, 2023, is -$621 million.

-$80.0

-$80.0

 

Tax Revenue=

-$90.3

-$80.0

 

Revenue Total=

-$90.3

-$80.0

Montana

Increased fuel tax and revised highway funding laws. Increased gasoline tax by 4.5 cents per gallon from 27 cents to 31.5 cents in FY 2018 and 2019. Gasoline tax increase is scheduled to phase in up to 33 cents per gallon in 2023 and thereafter. Increased the special fuels tax by 1.5 cents per gallon from 27.75 cents to 29.25 cents per gallon in FY 2018 and 2019. Special fuels tax increase is expected to phase in up to 29.75 cents per gallon by Fee 2023 and thereafter. Proceeds from the gas tax increase will be deposited in a newly established bridge and road safety and accountability restricted account.

$28.2

$28.2

 

Increased nursing home bed tax to increase nursing home reimbursement rates. Bed tax increased from $8.30 per bed per day to $11.30 per bed/day in FY 2018 and $15.30 per bed/day in FY 2019 and thereafter.

$4.5

$10.5

 

Tax Revenue=

$32.7

$38.7

 

Enacted various fees and assessments.

$8.5

$8.4

 

Clarified funding sources for the highway patrol and increased certain vehicle registration fees.

$5.2

$5.2

 

Generally revised medical marijuana laws. Required providers of marijuana and marijuana-infused products to obtain a nursery license. Created a license fee for medical marijuana dispensaries in the state with revenue from the fee being deposited into the state's medical marijuana special revenue account.

$1.2

$1.2

 

Revised laws related to aquatic invasive species. Established the aquatic invasive species prevention pass. In order to be eligible to fish in Montana or apply for a fishing license a person must first obtain an annual aquatic species prevention pass for a fee of $2 for residents and $15 for nonresidents. Additionally, established an invasive species fee for hydroelectric facilities and hydroelectric-dependent utilities. Revenues from these fees will be deposited in the Invasive Species account in the state special revenue fund.

$7.1

$7.1

 

Established fees providing for a new driver's license or identification card to comply with the federal Real ID Act of 2005.

$3.0

$7.0

 

Established the Montana Pulse Crop Committee and provided for a pulse crop assessment.

$2.9

$2.9

 

Non-Tax Revenue=

$27.9

$31.8

 

Revenue Total=

$60.6

$70.5

Nebraska

No significant tax changes.

N.A.

N.A.

Nevada

Authorized $10 million per fiscal year in tax credits for qualifying film projects in the state. Any portion of the $10 million not approved in a fiscal year may be carried forward to future fiscal years. Tax credits can be used by the recipient or transferred to taxpayer, but tax credits can only be declared and used against the Modified Business Tax, Gaming Percentage Fee Tax, or Insurance Premium Tax.

-$10.0

-$10.0

 

Authorized an additional $20 million in tax credits against the Modified Business Tax (MBT) awarded on a dollar for dollar basis for a donation made by an MBT taxpayer to a qualified tuition scholarship organization under the Nevada Educational Choice Scholarship Program.  The $20 million in FY 2018 is in addition to the $6.05 million for FY 2018 and $6.655 million for FY 2019 for this program from 2015 session legislation.

-$20.0

$0.0

 

Established a 15 percent wholesale excise tax on medical marijuana sold by cultivation facilities. This replaced the 2 percent wholesale/retail excise tax on medical marijuana sold by cultivation, production, and dispensaries. This was done to align with the 15 percent wholesale excise tax on recreational marijuana sold by cultivation facilities. This tax changed was approved by ballot question 2 in 2016.

$2.8

$3.4

 

Established a new 10 percent retail excise tax on recreational marijuana.

$26.5

$37.1

 

Tax Revenue=

-$0.7

$30.4

 

Revenue Total=

-$0.7

$30.4

New Hampshire

Increased Research and Development Tax Credit from $2 million to $5 million in aggregate.

$0.0

$0.0

 

Lowered Business Profits Tax rate from 8.2 percent to 7.9 percent. The rate will decrease again to 7.7 percent July 1, 2019. The revenue estimates are combined totals of these changes.

-$5.2

-$14.8

 

Lowered the Business Enterprise Tax from 0.72 percent to 0.675 percent. The rate will decrease to 0.6 percent July 1, 2019. The revenue estimates are combined totals of these changes.

-$3.9

-$17.1

 

Increased Section 179 deduction from $100,000 to $500,000.

$0.0

-$9.7

 

Reduced Medicaid Enhancement Tax rate from 5.45 percent to 5.40 percent, rate will drop to 5.25 percent if uncompensated care payments fall below $375 million.

-$2.3

-$2.3

 

Sunset of Electricity Consumption Tax.

N.A.

-$3.0

 

Tax Revenue=

-$11.4

-$46.9

 

Revenue Total=

-$11.4

-$46.9

New Jersey

Enacted legislation to increase annually, in equal increments, pension income exclusion, from $20,000 married filing joint (m/f/j) to $100,000 by TY 2020. The fiscal impact is expected to be between -$60 and -$90 million in FY 2018 and between -$70 and -$105 million in FY 2019.

-$75.0

-$87.5

 

Provided a tax credit for certain health care professionals that provide services to Gold Star families.

Fiscal impact unknown

Fiscal impact unknown

 

Increased cap on Economic Recovery and Growth tax credits by $105 million.

Fiscal impact unknown

Fiscal impact unknown

 

Enacted a general sales and use tax two-step rate reduction. The first step takes effect on Jan. 1, 2017 and reduces the state sales and use tax rate from 7.0 percent to 6.875 percent. The second step takes effect on Jan. 1, 2018 and reduces the state sales and use tax rate further, from 6.875 percent to 6.625 percent. This is expected to have a combined fiscal impact of -$392.2 million in FY 2018 and -$592.8 million in FY 2019.

-$392.2

-592.8

 

Elimination of Sales and Use Tax imposition on transportation services originating in New Jersey and provided by a limousine operator.

Fiscal impact unknown

Fiscal impact unknown

 

Enacted second phase of a two-step phase out of the Estate Tax. Step one, which became effective on Jan. 1, 2017, increased the exclusion amount from $675 thousand to $2 million. Step two, effective Jan. 1, 2018, eliminates the estate tax for decedents dying after Jan. 1, 2018.

-$116.4

$0.0

 

Increased gross receipts tax on diesel fuel from 4 to 8 cents per gallon for sales made on or after July 1, 2017. This action was phased in as part of the larger reforms to the Petroleum Products Gross Receipts Tax enacted in 2016.

$39.6

$39.6

 

Tax Revenue=

-$544.0

-$640.7

 

Revenue Total=

-$544.0

-$640.7

New Mexico

Added back certain deductions to include costs paid to captive real estate trusts in "net income" definition. Expands base up to $27 million by adding back certain deductions.

$0.5

$1.0

 

Tax Revenue=

$0.5

$1.0

 

Revenue Total=

$0.5

$1.0

New York

Converted the New York City personal income tax School Tax Relief (STAR) program rate reduction into a New York State personal income tax credit. The state currently reimburses the city for the amount of this rate reduction.

$0.0

-$340.0

 

Extended the Millionaire's Tax for two years. This tax established a rate of 7.85 percent for single taxpayers earning more than $300,000 annually, and a rate of 8.82 percent for single filers earning more than $1 million annually. It is now set to expire on Dec. 31, 2019. No change in taxpayer liability.

$683.0**

$3,375.0**

 

Extended the current limitations on itemized deductions for those with incomes exceeding $1 million. This is now set to expire on Dec. 31, 2019. No change in taxpayer liability.

$0.0**

$70.0**

 

Enacted legislation to enhance the Child and Dependent Care tax credit. The out-year fiscal impact is expected to be -$47 million.

$0.0

$0.0

 

Allowed for the full deduction of union dues. Out-year fiscal impact is expected to be -$35 million.

$0.0

$0.0

 

Provided a tax credit to farmers that make donations to food pantries. Out year fiscal impacted expected to be -$10 million.

$0.0

$0.0

 

Closed a loophole in the sale of co-ops. Gains from the sales of co-operative shares are now included as a non-resident's New York source income.

$10.0

$10.0

 

Closed a loophole in nonresident asset sales. Requires non-resident sellers of partnership assets that are subject to IRC Section 1060 to classify the transaction as the sale of as asset.

$10.0

$10.0

 

Extended the Empire State Film Production Tax Credit for three years. The credit is now set to expire on Dec. 31, 2022. The out year fiscal impact for the state is expected to be -$420 million. No change in taxpayer liability.

$0.0**

$0.0**

 

Extended the Youth Works Tax Credit for five years. The program is now set to expire on Dec. 31, 2022. The out-year fiscal impact for the state is expected to be -$40 million. No change in taxpayer liability.

$0.0**

$0.0**

 

Extended the credit for purchasing or upgrading a for-hire Created the Empire State Apprenticeship Tax Credit. A certified employer will be entitled to tax credits against income or franchise tax for each qualified apprentice. Out-year fiscal impact is expected to be -$10 million. The credit is set to expire on Dec. 31, 2022.

$0.0

$0.0

 

Extended the Alternative Fuels and Electric Vehicle Recharging Property Credit for five years. The credit is now set to expire on Dec. 31, 2022. No change in taxpayer liability.

$0.0**

$0.0**

 

Provided for a technical fix of the investment tax credit. This disallows property principally used in the production or distribution of electricity, natural gas, steam, or water.

$0.0

$0.0

 

Extended the Health Care Facility Cash Assessment rate for hospitals and home care providers. The assessment rate is now current through March 31, 2019. No change in taxpayer liability.

$400.0**

$400.0**

 

Extended the assessment rate for nursing homes at 6.8 percent. The assessment rate is now current through March 31, 2019. No change in taxpayer liability.

$600.0**

$600.0**

 

Continued Hospital Reimbursement. Includes continuation of the Medicaid inpatient hospital reimbursement methodology and collection of the Health Care Reform Act (HCRA) surcharges and assessments. The law is now current through Dec. 31, 2020. No change in taxpayer liability.

$3,300.0**

$3,400.0*

 

Extended authorization for the collection of the Covered Lives Assessment. The law is now current through Dec. 31, 2020. No change in taxpayer liability.

$1,100.0**

$1,100.0**

 

Extended current assessment on inpatient revenues of hospitals. The law is current through Dec. 31, 2020. No change in taxpayer liability.

$424.0**

$424.0**

 

Tax Revenue=

$20.0

-$320.0

 

Enacted an E911 Surcharge on Prepaid Wireless Cellphones of $0.90 cents.

$7.0

$26.0

 

Enacted an assessment on the gross trip fare of Transportation Network Companies (TNC) or "rideshare companies," including Uber and Lyft. This is a 4 percent assessment on the gross trip fare of every TNC prearranged trip that originates anywhere in New York State outside New York City and terminates anywhere in New York State.

$12.0

$24.0

 

Non-Tax Revenue=

$19.0

$24.0

 

Revenue Total=

$39.0

-$296.0

North Carolina

Enacted a series of changes to the personal income tax including: reducing the personal income tax rate from 5.499 percent to 5.25 percent beginning Jan. 1, 2019; increasing the standard deduction to from $17,500 to $20,000 (MFJ), effective Jan. 1, 2019; changing the standard deduction for the head of household to 75 percent of MFJ, previously was 80 percent, effective Jan. 1, 2019; and converting the Child Credit to tiered Child Deduction. This change expands the number of taxpayers who may benefit by converting to five deduction amounts. The top amount begins at $2,500 and decreases by $500 increments as taxpayer income increases.

$0.0

-$383.8

 

Reduced corporate income tax rate from 3.0 percent to 2.5 percent.

N.A.

-$65.2

 

Extended sunset/deadline for certain Renewable Energy Credits. No change in taxpayer liability.

$0.5**

$0.5**

 

Reduced S Corporation Franchise Tax by applying a flat $200 fee on the first $1 million of the calculated base. The amount of the tax base that exceeds $1 million will be subject to the previous rate of $1.50 per $1,000 of tax base.

$0.0

-$19.0

 

Enacted a sales tax exemption for fulfillment facilities.

-$6.4

-$0.5

 

Repealed the 1 percent privilege tax on mill machinery and replaced it with a sales and use tax exemption for the items. Additionally, created a sales tax exemption for ready mix concrete.

N.A.

-$52.8

 

Tax Revenue=

-$6.4

-$521.3

 

Revenue Total=

-$6.4

-$521.3

North Dakota

Replaced the Angel Fund Investment tax credit, equal to 45 percent of the amount invested in a certified angel fund, with an Angel Investor income tax credit, which is equal to 35 percent of the amount invested in an in-state qualified business and 25 percent of the amount invested in an out-of-state qualified business. The fiscal impact of the new credit cannot be determined but corporate and individual income taxpayers were claiming between $2 million and $7 million per year under the previous angel fund investment tax credit.

N.A.

N.A.

 

Legislation enacted by the 2015 Legislative Assembly allows taxpayers to elect an alternate income tax apportionment method. The legislation allows a double weighted sales factor apportionment election for tax year 2016 and 2017, a 75 percent weighted sales factor apportionment election for tax year 2018, and a single sales factor apportionment election for tax years 2019 and forward.

-$7.5

-$16.3

 

See Appendix D for property tax actions.

 

 

 

Tax Revenue=

-$7.5

-$16.3

 

Increased the assessed communications services fee by $0.50 per month for a 6-year period. This increase is effective until Aug. 1, 2023.

$4.8

$4.8

 

Non-Tax Revenue=

$4.8

$4.8

 

Revenue Total=

-$2.7

-$11.5

Ohio

Increased college savings plan tax credit.

$0.0

-$6.9

 

Eliminated bottom two personal income tax brackets. The minimum bracket now begins at $10,501 of taxable income.

-$3.0

-$3.0

 

Enacted a sales tax holiday to occur on clothing and school supplies only between Aug. 3-5, 2018.

-$15.2

-$15.2

 

Enacted a sales tax exemption for purchases of digital multimedia from an amusement device that accepts direct payments; e.g., a digital jukebox or arcade game. It’s uncertain how much revenue the state will lose from this tax change.

Uncertain loss

Uncertain loss

 

Capped the 17 percent excise tax on premium cigars to 50 cents per cigar.

-$1.4

-$1.5

 

See Appendix D for property tax actions.

 

 

 

Tax Revenue=

-$19.6

-$26.6

 

Adjusted the licensing of pharmacists, pharmacy interns, terminal and whole distributors of dangerous drugs from an annual to biennial licensing schedule, and increased fees.

$3.8

$3.8

 

Enacted a licensing fee for pharmacy technicians. The new fee structure is $55 for the initial fee and $25 for the annual renewal fee. The fiscal impact of this change is between $1-$2 million of new revenue in FY 2018 and FY 2019.

$1.5

$1.5

 

Extended the sunset date for various Environmental Protection Agency (EPA) fees for two years. No change in taxpayer liability.

N.A.**

$79.6**

 

Non-Tax Revenue=

$5.3

$5.3

 

Revenue Total=

-$14.3

-$21.3

Oklahoma

Froze the state standard deduction equal to the TY 2017 federal standard deduction. No change in taxpayer liability.

$4.4**

$14.5**

 

Eliminated the trigger mechanism which could have reduced the top marginal individual income tax rate to 4.85 percent from 5 percent, contingent on certain revenue growth. No change in taxpayer liability.

N.A.**

N.A.**

 

Reduced the total, statewide maximum rebate amount for film industry rebates from $5 million to $4 million annually.

$1.0

N.A.

 

Repealed vendors' 1 percent sales tax "retention discount" for collection and remittance.

$14.0

N.A.

 

Modified the sales tax exemption for motor vehicle purchase. This provides that a portion of the state sales tax levy (1.25 percent) will apply to the sales of motor vehicles.

$123.4

N.A.

 

Moved up sunset date for certain gross production tax exemptions.

$46.3

N.A.

 

Modified gross production tax incentive rate for certain production from 1 percent to 4 percent.

$102.1

N.A.

 

Tax Revenue=

$286.8

$0.0

 

Created fee on the initial sale of tickets to certain professional sporting events. The fee schedule is $1 on tickets priced at $50 or less, and $2 on tickets priced at more than $50.

$2.7

N.A.

 

The state enacted tobacco cessation fee of $1.50 per pack within the final days of the 2017 legislative session. The fee drew criticism because it did not indicate the purpose of the assessment to reduce the incidence of smoking, or for increased regulation of tobacco products. On Aug. 10, 2017, the Oklahoma Supreme Court ruled the fee was a tax. Oklahoma’s constitution requires a three-fourths majority for all tax increases, while fee increases require a simple majority. The smoking cessation legislation was passed with a simple majority, and therefore violated the Oklahoma Constitution and was struck down. The fee was expected to bring in $214 million for the state in FY 2018 and $250 million for the state in FY 2019. When the fee was ruled unconstitutional it placed Oklahoma in a budget shortfall situation and the state was called into special session to address the shortfall.

$214.9**

$257.8**

 

Moved up sunset date to July 1, 2017 for credit for power generated by zero-emission facilities. No impact on revenue until 2027.

N.A.

N.A.

 

Modified filing date for certain franchise tax remitters. Moved the due date from July 1, 2018 to May 1, 2017. This change has a one-time revenue impact.

$12.7

N.A.

 

Enacted a noncompliant sales tax permit holder collection initiative. The expected fiscal impact will raise $12.1 million revenue for income tax and $4.9 million for mixed beverage tax.

$17.0

N.A.

 

Established a Voluntary Disclosure Initiative, similar to amnesty program. A taxpayer shall be entitled to a waiver of penalty, interest, or other collection fees due on eligible taxes if a taxpayer files delinquent tax returns and pays the taxes due during the disclosure initiative period.

$14.6

N.A.

 

Non-Tax Revenue=

$47.0

$0.0

 

Revenue Total=

$333.8

$0.0

Oregon

Changed the sales factor of the corporate income tax apportionment formula from cost of performance to market-sourcing for purposes of determining sales factor applicable to intangible property and services.

$0.0

$5.5

 

Raised the gas tax 4 cents per gallon, from 30 cents to 34 cents.

$36.0

$74.0

 

Raised the weight-mile tax by 25 percent.

$35.0

$75.0

 

Created an assessment on insurers at 1.5 percent of gross receipts. This tax change is set to terminate on Jan. 1, 2020.

$29.0

$61.0

 

Raised the hospital assessment rate from 5.3 percent to 6.0 percent. This increase is set to terminate on Sept. 30, 2021.

$115.0

$239.0

 

Enacted a 0.5 percent privilege tax on vehicle dealers.

$12.0

$28.0

 

Enacted a 0.1 percent payroll tax.

$38.0

$77.0

 

Created a bicycle excise tax at a rate of $15 per bicycle.

$0.6

$1.5

 

Tax Revenue=

$265.6

$561.0

 

Increased registration fees from $43 per vehicle to $56 per vehicle.

$30.0

$60.0

 

Increased title fees from $77 per vehicle to $93 per vehicle.

$8.0

$16.0

 

Raised court filing, motion, and settlement fees by roughly 6 percent.

$1.5

$1.9

 

Non-Tax Revenue=

$39.5

$77.9

 

Revenue Total=

$305.1

$638.9

Pennsylvania

Granted online marketplace providers the option to either collect and remit sales and use tax as if they were the vendor or submit documentation of sales to the Department of Revenue. The Department would then use that information to attempt to collect use tax from purchasers.

$8.0

$50.5

 

Created a new tax imposed on a new category of consumer fireworks made legal by legislation at a rate of 12 percent.

$2.8

$8.7

 

Expanded gaming by allowing for internet gaming, fantasy sports, gaming at airports, and a new category of satellite casinos. Estimates here reflect combined taxes and fees expected in the General Fund.

$200.0

$100.7

 

Required withholding of current tax liabilities by businesses paying income to out-of-state lessors of real estate and contract employees working in-state.

$9.8

$24.6

 

Tax Revenue=

$220.6

$184.5

 

Shortened the period for petitions in the appeals process from 90 to 60 days.

$10.0

$10.0

 

Non-Tax Revenue=

$10.0

$10.0

 

Revenue Total=

$230.6

$194.5

Rhode Island

Increased the cigarette tax from $3.75 to $4.25 per pack.

$7.5

$7.3

 

Increased hospital license fees from 5.65 percent to 5.86 percent. This fee expires annually.

$13.0

$0.0

 

 

See Appendix D for property tax actions.

 

 

 

Tax Revenue=

$20.5

$7.3

 

Rescinded a fee reduction adopted in the 2016 legislative session that was set to be effective July 1, 2018. No change in taxpayer liability.

$4.2**

$4.2**

 

Established a tax amnesty program.

$12.5

$0.0

 

Non-Tax Revenue=

$12.5

$0.0

 

Revenue Total=

$33.0

$7.3

South Carolina

Created a refundable vehicle maintenance tax credit. The credit amount is the lesser of the impact of the two-cent increase in gas tax or actual vehicle maintenance cost.

-$40.0

-$65.0

 

Enacted a nonrefundable tax credit equal to 125 percent of the federal Earned Income Tax Credit that will be phased in over six years.

N.A.

-$20.4

 

Increased the wage limit for a nonrefundable two wage earner tax credit from $30,000 to $50,000 over six years.

N.A.

-$3.3

 

Increased the refundable tuition tax credit to four-year and two-year institutions. The rate went from 25 percent of tuition up to $850 for a four-year school and up to $350 for a two-year school, to 50 percent of tuition up to $1,500 for four-year and two-year schools.

N.A.

-$6.2

 

Increased the maximum threshold for refundable tax credits claimed for contributions to the Educational Credit for Exceptional Needs Children Fund. The maximum threshold increased from $10 million to $11 million.

-$1.0

-$1.0

 

Raised the maximum sales tax cap on aircraft, boats, trailers, and construction equipment. The old rate was 5 percent of sales value up to $300 per item and the new rate is 5 percent of sales value up to $500 per item.

$1.7

$1.7

 

Increased the motor fuel tax by 2 cents per gallon, from 16 cents to 18 cents per gallon. The motor fuel tax will increase by another 2 cents per gallon, from 18 cents to 20 cents per gallon on July 1, 2018.

$68.9

$85.1

 

Created a road use fee on all large commercial motor vehicles. Taxed out-of-state apportioned carriers that currently do not pay property taxes. The road use fee is calculated using the same method as property taxes. The new rate is the value times assessment ratio of 9.5 percent times millage rate.

N.A.

$17.5

 

See Appendix D for property tax actions.

 

 

 

Tax Revenue=

$29.6

$8.4

 

Increased the biennial registration fee on motor vehicles from $24 per vehicle to $40 per vehicle.

$12.7

$26.1

 

Enacted an infrastructure maintenance fee at 5 percent of sales price of vehicle up to $500.

$72.7

$72.7

 

Enacted an infrastructure maintenance fee of $250 per vehicle for new residents registering an out-of-state vehicle.

$20.1

$20.3

 

Created a biennial registration fee for alternative fueled vehicles at a rate of $60 per vehicle.

$0.7

$1.5

 

Non-Tax Revenue=

$106.2

$120.6

 

Revenue Total=

$135.8

$129.0

South Dakota

No significant tax changes.

N.A.

N.A.

Tennessee

Decreased the Hall Income Tax rate. The previous 5 percent rate will be 4 percent for tax year 2017. It will continue to decrease by 1 percent each tax year following until it phases out completely in tax year 2021. (e.g., 3percent for tax year 2018; 2percent for tax year 2019; 1 percent for tax year 2020; 0 percent for 2021 and after)

-$35.6

-$71.2

 

Established a Hall Income Tax credit equal to 33 percent of the value of an investment by an angel investor, if certain conditions apply.

-$1.9

-$2.6

 

Authorized annualized method for quarterly estimated F&E tax payments. Extended time for exemption applications. Decreased the penalty for late filings, from $1,000 to $200, for such exemption applications.

-$3.7

-$0.3

 

Authorized manufacturers to elect a sales only apportionment formula for F&E tax purposes.

-$102.1

-$113.3

 

Revised various provisions concerning the taxation of modern market telecommunication providers (MMTPs), including an imposition of a new privilege tax on MMTPs, and reclassification of MMTPs to industrial and commercial property. The maximum rates are $4,750,000 in FY 2018, $3,750,000 in FY 2019, $2,750,000 in FY 2020, $1,500,000 in FY 2021, and $500,000 in FY 2022. The privilege tax on MTTPs terminates Dec. 31, 2022.

$4.0

$3.0

 

Lowered the sales tax rate on the retail sale of food and food ingredients from 5 percent to 4 percent.

-$119.4

-$119.4

 

Capped the sales tax rate on a person’s purchase, use, consumption, or storage of aviation fuel that is used in the operation of airplane or aircraft motors shall not exceed the following for any taxpayer: $21,375,000 for the period of July 1, 2015 through June 30, 2016; $17,750,000 for the period of July 1, 2016 through June 30, 2017; $14,125,000 for the period of July 1, 2017 through June 30, 2018; and $10,500,000 for any tax year occurring on or after July 1, 2018. 

-$16.2

-$22.3

 

Increased the gas tax rate from 20 cents per gallon to 24 cents per gallon on July 1, 2017. The rate will increase to 25 cents per gallon on July 1, 2018 and 26 cents per gallon on July 1, 2019.

$84.7

$105.9

 

Increased the diesel tax rate from 17 cents per gallon to 21 cents per gallon, effective July 1, 2017. The rate will increase to 24 cents per gallon on July 1, 2018 and to 27 cents per gallon on July 1, 2019.

$31.5

$55.1

 

Enacted the Ground Ambulance Service Provider Assessment Act, which requires an ambulance service to pay a quarterly assessment to the Bureau of TennCare. This assessment terminates June 30, 2018.

$10.3

N.A.

 

See Appendix D for property tax actions.

 

 

 

Tax Revenue=

-$148.5

-$165.1

 

Raised motor vehicle registration fees. A $5 increase was enacted for Class (A) through (H) vehicles. A $10 increase was enacted for private and commercial passenger vehicles operating for hire. A $20 increase was enacted for trucks and truck tractors. A $100 registration fee was enacted for electric vehicles.

$34.3

$34.3

 

Made various changes to the regulation of securities under the Tennessee Securities Act of 1980, including the imposition of a $50 fee on any covered security that files a change of name, and an annual renewal fee of $100 for Rule 506 of Regulation D exemption filings.

$1.1

$1.1

 

Non-Tax Revenue=

$35.4

$35.4

 

Revenue Total=

-$113.1

-$129.7

Texas

Increased Tax Compliance.

$47.8

N.A.

 

Enacted a tax amnesty program.

$23.0

$23.0

 

Accelerated the sale of unclaimed securities.

$250.0

$250.0

 

Abolished several varying license fees relating to bingo administration.

-$3.2

-$3.2

 

Decreased fee for the issuance or renewal of

license to carry a handgun from $140 to $40.

-$12.8

-$9.6

 

Non-Tax Revenue=

$304.8

$260.2

 

Revenue Total=

$304.8

$260.2

Utah

Enacted a phase out for the individual income tax credit for certain renewable energy systems.

N.A.

-$2.1

 

Established an oil and gas severance tax credit for a taxpayer that produces natural gas for use in the production of hydrogen fuel for zero emission motor vehicles.

N.A.

-$3.4

 

Modified the refinery sales tax exemption.

$1.0

$2.1

 

Raised the liquor markup from 86 percent to 88 percent.

$1.7

$2.1

 

Indexed the gas tax to inflation.

N.A.

$4.2

 

Tax Revenue=

$2.7

$2.9

 

Revenue Total=

$2.7

$2.9

Vermont

Lowered "safe harbor" reporting percentage from 0.2 percent to 0.1 percent of adjusted gross income and established a $500 cap for total use tax liability. This safe harbor allows for a simple method of determining taxpayer liability to encourage better reporting of use tax liability.

$1.8

$1.8

 

Changed income tax starting point to begin at federal adjusted gross income (AGI) rather than at federal taxable income starting in tax year 2018.

N.A

N.A.

 

Tax Revenue=

$1.8

$1.8

 

General Assembly directed Tax Department to use new and existing strategies to close the gap between taxes paid and taxes due to increase collections in State fiscal year 2018.

$3.2

$3.2

 

Non-Tax Revenue=

$3.2

$3.2

 

Revenue Total=

$5.0

$5.0

Virginia

Limited the Historic Rehabilitation Tax Credit by prohibiting a taxpayer from claiming more than $5.0 million for tax years 2017 and 2018. This language does not limit the amount of credits that could be issued by the Department of Historic Resources, but it does impact the timing of when large credit amounts could be claimed.

$9.9

$9.9

 

Limited the Land Preservation Tax Credit amount that can be claimed on each annual tax return to $20,000 for a single filer and $40,000. Terminates for tax years beginning on or after Jan. 1, 2018.

$8.1

N.A.

 

Clarified that the presence of inventory within the state gives rise to retail sales and use tax nexus for out-of-state sellers who make sales to Virginia customers. Out-of-state sellers that use warehouses and/or fulfillment centers within the state will be required to register as dealers for the collection of retail sales and use tax.

$11.1

$11.1

 

Tax Revenue=

$29.1

$21.0

 

Authorized a tax amnesty program in FY 2018.

$89.5

N.A.

 

Deferred the phase-out of accelerated sales tax. Retained the current $2.5 million taxable sales threshold for remittance of the June accelerated sales tax in FY 2017 and increased the threshold to $4.0 million in FY 2018.  Previous budget assumed the threshold would increase to $10.0 million in June 2017 and to $25.0 million in June 2018 (retains $35.1 million in FY 2017 and $12.8 million in FY 2018). No change in taxpayer liability.

$12.8**

N.A.**

 

Non-Tax Revenue=

$89.5

$0.0

 

Revenue Total=

$118.6

$21.0

Washington

Extended the states B&O tax economic nexus provisions to taxpayers engaged in making retail sales.

$2.0

$7.7

 

Extended Motion Picture Competitiveness B&O Tax Credit set to expire on July 1, 2017 to a new sunset date of July 1, 2027. The legislature reduced the maximum credit that can be claimed by an individual annually from $1 million to $750,000.

-$3.2

-$3.5

 

Enacted legislation requiring marketplace facilitators and remote sellers to comply with certain use tax reporting requirements or collect and remit Washington sales and use tax if they have at least $10,000 in gross receipts from sales to Washington consumers. Referrers receiving at least $267,000 in gross income from providing referral services apportioned to Washington, must likewise elect to collect and remit or comply with specified use tax notice requirements.

$83.7

$256.8

 

Repealed the sales tax exemption on bottled water.

$24.5

$30.1

 

Narrowed the use tax exemption for self-produced fuels to include only biomass fuels effective Jan. 1, 2018. The use tax for refinery fuel gas is 0.963 percent in TY 2018, 1.926 percent in TY 2019, 2.889 percent in TY 2020, and 3.852 percent in TY 2021 and following years.

$1.6

$6.4

 

Increased the state property tax by $0.87, from $1.83 to $2.70 per $1,000 in assessed valuation. This increase is offset partially by a cap on local school maintenance and operations (M&O) property tax levies.

$541.0

$1,073.2

 

Tax Revenue=

$649.6

$1,370.7

 

Revenue Total=

$649.6

$1,370.7

West Virginia

Updated the meaning of federal adjusted gross income (AGI).

$0.0

$0.0

 

Updated the meaning of federal taxable income.

$0.0

$0.0

 

Raised the privilege tax on motor vehicle sales from five percent to six percent. Funds from this increase are dedicated to the State Road Fund. The revenue increase from this change is roughly $41.2 million in FY 2018 and FY 2019.

$41.2

$41.2

 

Increased the floor of the average wholesale price (AWP) from $2.34 per invoiced gallon to $3.04 per invoiced gallon. Also increased the variable component of the Motor Fuel Tax from $0.117 per invoiced gallon to $0.152 per invoiced gallon. Funds from these increases are dedicated to the State Road Fund.

$44.9

$49.0

 

Extended and increased the Acute Care Hospital Tax Rate from 0.74 percent to 0.75 percent. Effective July 1, 2017 and expires on June 30, 2018. The legislature has consistently extended the temporary tax for one additional year since its enactment.

$25.5

$8.5

 

Tax Revenue=

$111.6

$98.7

 

Increased various securities fees.

$5.6

$5.6

 

Increased various DMV fees, including but not limited to license renewal and registration fees. Increases became effective July 1, 2017. Revenues are dedicated to State Road Fund. The annual increase from this revenue change is roughly $40.4 million.

$40.4

$40.4

 

Non-Tax Revenue=

$46.0

$46.0

 

Revenue Total=

$157.6

$144.7

Wisconsin

Enacted legislation to prohibit the same income from being claimed on the manufacturing and agriculture credit and on taxes paid to other states credit.

$9.7

$9.7

 

Updated references to the IRC to include provisions in effect on Dec. 31, 2016, with exceptions.

-$0.6

-$5.6

 

Enacted legislation to limit the Taxes Paid to Other States Credit to the amount of tax that would be paid if the same income was taxed in Wisconsin.

$11.3

$9.0

 

Repealed the alternative minimum tax (AMT). Fiscal impact is -$1.75 million FY 2018. Total ongoing fiscal impact is expected to be -$7 million.

$0.0

-$1.8

 

Enacted legislation that requires homestead tax credit claimants to have earned income in order to qualify for the credit.

$0.0

$7.0

 

Enacted changes that require homestead tax credit claimants to report disqualified losses, generally defined as business losses, when determining household income for the purposes of the credit.

$1.6

$1.6

 

Limited the amount of historic rehabilitation credits that a claimant can be certified to receive to no more than $500,000 per parcel beginning July 1, 2018. Total ongoing fiscal impact is projected to generate $47.39 million in new revenue.

$0.0

$1.2

 

Limited the net operating loss recomputation period to no more than four years beyond the due date for filing the original return for the tax year in which the loss was incurred.

$1.0

$1.0

 

Modified the apportionment formula for broadcasters. Total ongoing fiscal impact is projected to be -$13 million.

$0.0

-$3.2

 

Converted 10 percent of the existing nonrefundable research credit into a refundable credit. Total ongoing fiscal impact is projected to be -$9 million.

$0.0

-$2.1

 

Provided refundable electronics information technology manufacturing zone credits for zone payroll and capital expenditures by a business, Foxconn Technology Group, that begins operation in a zone and is certified to receive the credits. These credits are available for no more than 15 years following the certification of the company for credits. The total fiscal impact of this tax change is expected to be -$2.85 billion over the 15-year period.

$0.0

-$2.4

 

Provided refundable enterprise zone tax credits for a financial services technology business, Fiserv, Inc., certified to receive credits if, after completing a competitive relocation process, it retains its corporate headquarters and at least 93 percent of its employees in the state and maintains certain payroll in the state. These credits can be claimed for no more than five consecutive tax years. This change will result in a loss of $2 million annually for up to 5 years.

$0.0

-$2.0

 

Delayed effective date of a tax refund until July 1, 2078 for a retailer related to bad debt of an affiliated lender that extends certain credit to that retailer. No change in taxpayer liability.

$10.2**

$10.4**

 

Expanded the exemption for lump sum contracts to apply to all construction contracts and to subcontractors.

-$1.3

-$1.5

 

Exempted frozen food and food consisting of more than 50 percent yogurt that is sold by a retailer and prepared by that retailer at a manufacturing establishment away from its retail location.

-$1.2

-$1.2

 

Exempted tangible personal property sold to certain construction contractors who transfer property to technical colleges or the University of Wisconsin.

N.A.

-$2.5

 

Repealed the healthcare provider assessment on ambulatory surgical centers. Old tax rate was 1.2703 percent of gross patient revenues.

-$5.0

-$5.0

 

Allowed state forestry mill tax to sunset. Reduced from 0.167 mills to 0 mills effective December 2017.

-$89.3

-$91.6

 

See Appendix D for property tax actions.

 

 

 

Tax Revenue=

-$73.7

-$89.3

 

Provided 38 project positions to the Department of Revenue for four years to increase auditing activities and improve tax collections.

$24.0

$32.0

 

Expanded reporting requirements for information returns and modified due dates for filing those returns for income/franchise tax filers.

$3.0

$3.0

 

Increased fees for electric vehicles. Increased hybrid-electric vehicle fee from $0 to $75. Increased electric vehicle fee from $0 to $100.

$2.6

$5.8

 

Increased maximum state parks and forests daily vehicle admission fee and daily camping fees. The maximum daily vehicle fee was increased from $11 to $16 for state residents and from $15 to $20 for nonresidents. The maximum daily camping fee was increased from $20 to $30 for state residents, and from $25 to $35 for nonresidents. These fees are subject to agency determination. The state park electrified campsite fees at select high-demand parks increased from $10 to $15.

$1.1

$2.4

 

Replaced pesticide registration graduated fee/surcharge structure with flat fees and surcharges of $530 per product.

-$1.7

-$1.8

 

Non-Tax Revenue=

$29.1

$41.4

 

Revenue Total=

-$44.6

-$47.9

Wyoming

Required remote sellers to collect Wyoming sales and use tax if the seller has more than $100,000.00 in sales in Wyoming or 200 separate transactions in Wyoming in any year. Rate of 4 percent plus local option taxes. Revenue impact estimates are indeterminable, but the state potentially could gain $28 million from all remote sales, subject to court action.

$28.0

$28.0

 

Tax Revenue=

$28.0

$28.0

 

Adjusted numerous motor vehicle registration fees.

$20.0

$20.0

 

Adjusted numerous driver's license fees.

$2.6

$2.6

 

Increased the court automation fee from $10 to $25.

$2.1

$2.1

 

Adjusted hunting, fishing, application, watercraft, and conservation fees.

$2.5

$4.9

 

Non-Tax Revenue=

$27.2

$29.6

 

Revenue Total=

$55.2

$57.6

**not reflected in totals.

Appendix D.2017 Tax and Revenue Changes by Type

 

This appendix shows by type the tax and revenue changes that took place in 2017 regular and special legislative sessions that will affect state revenues in FY 2018 (for most states July 1, 2017, to June 30, 2018) and FY 2019 (for most states July 1, 2018, to June 30, 2019). Tax changes by state appear in Appendix E.

Changes effective in a certain fiscal year as a result of legislation passed in an earlier year are noted by **. This appendix does not include changes in unemployment compensation taxes, nor does it include state-mandated reductions in local property tax rates.

The following abbreviations are used:

AGI = Adjusted Gross Income

LLC = Limited Liability Corporation

B&O = Business and Occupation

LLP = Limited Liability Partnership

CPI = Consumer Price Index

NOL = Net Operating Loss

EITC = Earned Income Tax Credits

R&D =   Research and Development

GRF = General Revenue Fund

HMO= Health Maintenance Organization

REIT = Real Estate Investment Trust

IRC = Internal Revenue Code

TY = Tax Year

 

 

Appendix F: Personal Income Tax

 

State

Description

FY 2018 Amount

(in millions)

FY 2019 Amount

(in millions)

Effective Date

Alabama

Enacted a credit equal to 20 percent of accrued cost of qualified irrigation equipment, and the cost of constructing a qualified reservoir. This credit becomes effective on Jan. 1, 2018 and terminates on Dec. 31, 2022. The fiscal impact reflects the corporate and individual combined.

N.A.

-$4.3

1/1/2018

 

Enacted a Rehabilitation of Historic Structures Credit equal to the lesser amount of the tax credit reservation or 25 percent of actual qualified rehabilitation expenditures. This credit becomes effective on Jan. 1, 2018 and terminates on Dec. 31, 2022. The fiscal impact reflects the corporate, individual and sales tax combined.

N.A.

-$20.0

1/1/2018

Arizona

Increased personal exemption amount in TY 2017 by $50- $150, followed by an additional $50-$150 increase in TY 2018. Beginning in TY 2019, amount is indexed to inflation.

-$6.8

-$6.7

1/1/2017

 

Authorized $10 million in angel investment tax credits over four years. Credit authorization is limited to $2.5 million per year for four years. Since credit must be claimed in equal installments over 3 years, the annual revenue impact is approximately -$0.8 million. Over the life of the credit, the cumulative revenue impact is -$10 million.

-$0.8

-$0.8

7/1/2018

Arkansas

Enacted the Tax Reform and Relief Act of 2017. This lowered income tax rates for Arkansas residents with an income of less than $21,000, as well as lowering the lowest rate in the middle-income tax table. The bill also created the Arkansas Tax Reform and Relief Task Force to examine the topic of tax reform in Arkansas in the upcoming fiscal years.

$0.0

-$25.0

1/1/2019

 

Increased the Historical Rehabilitation Tax Credit to 25 percent of total qualified rehabilitation expenses up to the first $1.6 million for projects starting on or after July 1, 2017.

-$1.0

-$1.0

7/1/2017

 

Exempted military retirement pay and survivor benefits from taxation beginning in TY 2018.

-$3.0

-$6.0

TY 2018

California

Expanded the Earned Income Tax Credit to provide the credit across a broader income range and include self-employment income.

-$140.0

-$140.0

1/1/2017

Colorado

Extended existing tax credit for child care expenses that was set to repeal after 2016. Effective date is TY 2017, but may be moved out a year depending on a revenue trigger. No change in taxpayer liability.

$6.1**

-$6.4**

TY 2017

Connecticut

Established an exemption for pension and annuity income from income tax for filers with adjusted gross incomes (AGIs) of certain levels. The elimination is implemented in equal portions over seven tax years, from 2019 through 2025.

-$8.2

-$24.6

TY 2019

 

Expanded the Social Security income tax exemption for applicable adjusted gross income (AGI) thresholds. The expansion is implemented in equal portions over seven tax years, from 2019 through 2026. 

-$7.9

-$16.3

TY 2019

 

Delayed increasing the exemption for teachers' pension income by two years. The exemption had been scheduled to increase from 25 percent to 50 percent for 2017 and subsequent tax years. The budget instead maintains it at 25 percent for 2017 and 2018 and increases it to 50 percent beginning in 2019. No change in taxpayer liability.

$8.0**

$8.0**

TY 2017

 

Limited eligibility for the $200 Property Tax Credit temporarily for tax years 2018 and 2019. The credit is limited to elderly and taxpayers with dependents.

$55.3

$55.3

TY 2018

 

Reduced the state Earned Income Tax Credit from 30 percent to 23 percent of the federal credit.

$35.0

$35.0

TY 2017

Georgia

Enacted a Historic Downtown Revitalization Tax Credit. This credit applies to any certified investors who acquire and develop property in a revitalization zone on or after Jan. 1, 2018. Additional credits are available for each new full-time equivalent job created in this district.  This credit will be terminated on Dec. 31, 2027 unless reauthorized by the legislature prior to this date. These credits can be used toward corporate or personal income tax liability. The revenue impact is a combined estimate.

No Estimate

-$1.0

1/1/2018

 

Created a nonrefundable nontransferable income tax credit for certain expenditures by a production company for live or recorded musical or theatrical performances. A qualified production company will receive a tax credit equal to 15 percent of qualified expenditures with the option of an additional 5 percent credit for qualified production expenditures occurring in designated counties. These credits are available beginning on Jan. 1, 2018 and is set to expire on Jan. 1, 2023. These credits can be used toward corporate or personal income tax liability. The revenue impact is a combined estimate.

-$1.1

-$5.0

1/1/2018

 

Enacted the Georgia Entertainment Industry Post-Production Investment Act. This act provides a 20 percent income tax credit on all qualified postproduction expenditures incurred by a post-production company. An additional 10 percent credit is allowed if the qualified postproduction expenditures were incurred in the state of Georgia, and an additional 5 percent credit is allowed if these expenditures occurred in a designated county. These credits are available beginning Jan. 1, 2018 and will expire on Jan. 1, 2023. These credits can be used toward corporate or personal income tax liability. Additionally, this act modified and removed the sunset date for income tax credits for interactive entertainment companies. The revenue impact is a combined estimate.

-$5.1

-$14.8

1/1/2018

 

Enacted an income tax credit for qualified education donations to the Public Education Innovation Fund. These credits can be used toward personal or corporate income tax liability. The credits are effective Jan. 1, 2018 to Dec. 31, 2020.

-$5.0

-$5.0

1/1/2018

 

Increased the tax credits available to individuals or entities that make contributions to rural hospital organizations. This legislation also changed the program cap to a flat $60 million per tax year, rather than $50 million in FY 2017, $60 million in FY 2018, and $90 million in FY 2019. These credits can be used towards either personal or corporate income tax liability; the revenue impact is a combined estimate. The credits set to expire on Dec. 31, 2019.

-$5.0

$5.0

1/1/2017

Hawaii

Added three new income tax brackets for married taxpayers filing jointly with taxable income over $300,000, heads of household with taxable income over $225,000, and single individuals over $150,000. These brackets are set at 9, 10 and 11 percent. Previously the top marginal income tax rate was 8.25 percent.

N.A.

$50.7

1/1/2018

 

Enacted an Earned Income Tax Credit. Effective Jan. 1, 2018 to Dec. 31, 2022. Qualifying individuals can claim a nonrefundable state earned income tax credit equal to 20 percent of the federal earned income tax credit.

N.A.

-$16.7

1/1/2018

 

Made the food tax credit permanent. No change in taxpayer liability.

N.A.**

-$6.5**

1/1/2018

Idaho

Increased the credit for applicable college savings program.

-$1.1

-$1.1

7/1/2017

Illinois

Increased personal income tax rate from a flat rate of 3.75 percent to a flat rate of 4.95 percent.

$4,453.0

N.A.

7/1/2017

 

Set income limits on certain credits and exemptions.

$96.0

N.A.

1/1/2017

 

Increased the state's Earned Income Tax Credit (EITC). For TY 2017 the EITC is increased to 14 percent of the federal EITC. Beginning on or after Jan. 1, 2018 the state's EITC is increased to 18 percent of the federal credit.

-$94.0

N.A.

1/1/2017

 

Increased the K-12 Education Expense Credit for $750 per family for all qualifying families. Effective Dec. 31, 2017, this credit is not allowed if the taxpayer's adjusted gross income for the taxable year exceeds $500,000 (married filing jointly) or $250,000 for all other returns.

-$35.0

N.A.

12/31/2017

Indiana

Increased deduction for Military Retirement and Survivor's Benefits.

N.A.

-$2.8

1/1/2018

 

Extended an existing state and local NBA All-Star Game tax exemption. All property owned by the National Basketball Association (NBA) and its affiliates, revenue of the NBA and its affiliates, expenditures and transactions of the NBA and its affiliates in connection with a NBA All-Star Weekend, and resulting from holding the associated events in Indiana or making preparatory advance visits to Indiana in connection with a NBA All-Star Weekend, are exempt from all state and local taxes. The exemption does not apply to salaries and wages paid to employees of the NBA and its affiliates that are ordinarily subject to Indiana state and local income taxation. If a NBA All-Star weekend is held in Indiana, the foregone revenue could be significant. However, this could be offset by a potentially significant increase in other tax revenue generated from the events. No change in taxpayer liability.

N.A.**

N.A.**

7/1/2017

 

Increased the cap for School Scholarship Income Tax Credits. This credit is available for individuals or corporations who donate to scholarship granting organizations. The revenue impact is a combined estimate. Cap is increased to $12.5 million in Fiscal Year 2018, and to $14 million each year thereafter. The estimated fiscal impact is between -$1.2 and -$2.4 million in FY 2018 and -$3.0 and -$3.6 million in FY 2019.

-$1.8

-$3.3

7/1/2018

 

Removed the Dec. 31, 2020 sunset date for the Venture Capital Investment tax credit. No change in taxpayer liability.

N.A.**

N.A.**

1/1/2018

 

Removed the Dec. 31, 2020 sunset date for the Hoosier Business Investment tax credit. No change in taxpayer liability.

N.A.**

N.A.**

1/1/2018

 

Expanded the eligibility for the dependent exemption. Change was originally enacted in 2016.

N.A.

-$4.7

1/1/2018

 

Phased-in rate reduction on the individual income tax. This change was originally enacted in 2013. Cut the rate from 3.4 percent in TY 2014 to 3.23 percent in TY 2017.

-$272.0

-$289.0

The new phased down rate is effective at the beginning of each tax year.

Kansas

Enacted personal income tax reform, which is expected to increase general fund revenue by $591 million in FY 2018 and $633 million in FY 2019. The bill repealed the exemption for non-wage business income, restored the third income tax bracket, and increased the rates of each bracket to 2.9 percent, 4.9 percent and 5.2 percent, respectively. Previous law provided for two brackets at 2.7 percent and 4.6 percent. $270.1 million of the revenue increase in FY 2018 is attributable to the repeal of the non-wage personal income tax exemption, and $320.9 percent of the revenue increase in FY 2018 is attributable to the restoration of the third income tax bracket and rate increase.

$591.0

$633.0

TY 2017

 

Expanded the Tax Credit for Low Income Students Scholarship Program.

-$9.0

-$9.0

7/1/2018

Louisiana

Eliminated the nonrefundable per-child tax credit for K-12 educational expenses. The credit is currently $18 per child, but scheduled to return to $25 per child on July 1, 2018.

$9.2

$12.8

TY 2017

 

Modified the alternative fuel vehicle conversion tax credit. Lowered the credit rate to 30 percent. This change made the credit nonrefundable and limited the applicability of the credit with regard to fueling equipment.

$0.6

$1.6

 

1/1/2018

 

Provided an exclusion from the gross income of an out-of-state individual or business for the income earned while in the state providing defined disaster response or emergency related services.

N.A.

Decrease

TY 2018

 

Modified the tax credits available for contributions to student tuition organizations that fund private school tuition costs for participating students. The credit is nonrefundable (from a rebate), and made available only to contributors that file a state income tax return.

N.A.

Increase

1/1/2018

 

Enacted legislation that provides for the payment of tax credits that had been denied to taxpayers claiming credit for solar energy systems as a result of aggregate credit caps in place when they filed their tax returns. Credits are due to be paid in three equal installments beginning in FY 2018.

-$5.0

-$5.0

FY 2018

 

Modified the existing tax credit available to physicians and dentists who are currently located in certain underserved areas of the state (up to $3,600 currently, up to $5,000 after July 1, 2018). Changed the definition of underserved areas and allowed eligibility for nurse practitioners. Total program is capped at $1.5 million per year and set to terminate after Dec. 31, 2020.

N.A.

-$1.0

1/1/2018

Maine

Citizens approved Question 2 on the on the November 2016 citizens' initiative, which enacted a 3 percent surcharge on taxable income exceeding $200,000 per year beginning with tax years on or after Jan. 1, 2017. Revenue from this tax is earmarked to a fund established to improve the ability of the state to reach the annual target of 55 percent for the state share of funding K-12 public education.

$70.9

-$2.2

TY 2017

 

The Maine Legislature repealed the 3 percent surcharge on taxable income exceeding $200,000 per year during the 2017 legislative session. This surcharge was enacted after the approval of Question 2 on the November 2016 citizens' initiatives.

-$100.1

$2.5

TY 2017

Maryland

Enacted a nonrefundable credit equal to 50 percent of qualified expenses, or up to $5,000, to renovate an existing home with accessibility and universal visitability features to assist individuals with disabilities. Revenue reduction is expected to be $1 million annually beginning in FY 2020.

N.A.

N.A.

7/1/2017

 

Extended the employer security clearance costs tax credit through Dec. 31, 2021. This tax credit can be used against personal and corporate income tax. No change in taxpayer liability.

N.A.**

-$1.9**

7/1/2017

 

Expanded the research and development tax credit. Increased the aggregate amount of credits that may be approved annually from $9 million to $12 million. The incentive can be credited against personal or corporate income tax. The revenue impact is a combined estimate.

-$2.4

-$2.6

7/1/2017

 

Exempted up to $15,000 of certain retirement income from personal income tax. Individual qualifies if the individual is at least 55 years old and the retirement income is attributable to employment as a law enforcement officer or as fire, rescue, or emergency services personnel.

-$3.7

-$3.8

7/1/2017

 

Re-established the exemption for qualified mortgage debt relief up to $100,000 ($200,000 if married filing jointly). The exemption is effective from July 1, 2017 to July 1, 2019.

N.A.

N.A.

7/1/2017

Massachusetts

Enacted an Earned Income Tax Credit (EITC) exclusion for out-of-state residents. These are persons who are nonresidents for the entirety of the taxable year. Part EITC Out-of-State Resident Exclusion. With respect to a person who is a nonresident for part of the taxable year, the credit shall be limited to 23 percent of the federal credit, multiplied by the fraction of the year which the person resided in Massachusetts.

$10.0

TBD

7/1/2017

 

Updated 1099-K reporting. Tax now applies to individuals who earn more than $600 from credit or debit card transactions annually. Previously relevant to those making at least $20,000 from 200 or more transactions annually.

$20.0

TBD

7/1/2017

Michigan

Enacted a transformational brownfield tax capture. Wages paid to individuals who are physically present and working on the construction, renovation, or other improvement of eligible property as part of an eligible activity within a transformational brownfield. The fiscal impact is unknown. When combined with the value of sales and use tax exemptions (see below) the program is capped at a total of $200 million over all years.

Unknown

Unknown

7/28/2017

 

Enacted a transformational brownfield tax capture. This resulted in a base change of 50 percent of the incremental increase in income tax revenue from individuals domiciled within eligible property subject to a transformational brownfield plan. The fiscal impact of this is unknown. It is capped at 20 years after captures begin, which can be up to five years after the property is approved for inclusion in transformational brownfield plan, and combined with the incremental withholding tax capture provisions, it may not exceed $40 million per year, or $800 million over all years.

Unknown

Unknown

7/28/2017

 

Enacted a transformational brownfield tax capture. This resulted in a base change of 50 percent of the incremental increase in income tax revenue withholding from individuals employed within eligible property subject to a transformational brownfield plan. The fiscal impact is unknown. It is capped at 20 years after captures begin, which can be up to 5 years after the property is approved for inclusion in transformational brownfield plan, and combined with the incremental income tax capture provisions, it may not exceed $40 million per year, or $800 million over all years.

Unknown

Unknown

7/28/2017

 

Enacted a transformational brownfield tax capture. Tax capture attributable to certified new jobs at an eligible business. Income tax withholding attributable to certified new jobs.

Unknown

Unknown

8/25/2017

Minnesota

Updated federal conformity relating to the exclusion for individuals related to charity, transfer up to $100,000 from a traditional IRA or Roth IRA directly to a qualified charity is allowed for individuals age 70 1/2 years.

-$3.8

-$4.0

TY 2015

 

Conformed to the federal tax code's Educator Classroom Expense Deduction up to $250.

-$1.5

-$1.6

TY 2015

 

Updated conformity to IRC Section 179 Expensing, 80 percent addback and five-year recovery.

$9.1

$6.5

TY 2015

 

Updated IRC conformity for personal income taxes. Conformed to 50 percent bonus depreciation for TY 2015 to TY 2017 and 40 percent from TY 2018 and 30 percent for TY 2019 using the 80 percent addback and five-year recovery method.

$7.2

$3.5

TY 2015

 

Updated IRC conformity for 15-year straight line depreciation for leasehold, restaurant and retail improvements and new restaurants.

-$0.9

-$1.2

TY 2015

 

Updated IRC conformity by increasing the phase-out for married joint filers claiming the MN Working Family credit to match the increased phase-out for married joint filers for the federal earned income tax credit.

$0.0

-$7.1

TY 2018

 

Updated IRC conformity relating to treatment of partnerships interests created by gifts.

$1.8

$1.6

TY 2016

 

Provided a subtraction for Social Security benefits. The subtraction ranges from $2,250 to $4,500, depending on filing status and income.

-$57.0

-$60.2

TY 2017

 

Provided a subtraction for Section 529 Plans. A single taxpayer may subtract up to $1,500, $3,000 for married joint filers, of contributions to any state section 529 college savings plan or prepaid tuition plan.

-$2.5

-$2.6

TY 2017

 

Enacted a nonrefundable Section 529 Plan Tax Credit for contribution to a college savings account established under section 529 of the IRC. The credit equals 50 percent of contributions, up to a maximum of $500.

-$7.5

-$7.8

TY 2017

 

Created a nonrefundable Student Loan Tax Credit for residents who make payments on their own postsecondary education loans.

-$26.9

-$27.8

TY 2017

 

Enacted a nonrefundable Beginning Farmer Tax Credit. The credit is set to expire after TY 2023.

$0.0

-$5.0

TY 2018

 

Created a refundable tax credit for taxes paid to Wisconsin. The tax credit expires if an income tax reciprocity agreement is in effect.

-$8.2

-$5.8

TY 2017

 

Modified the refundable Working Family Credit to allow on reservation earnings of enrolled members of an American Indian Tribe to apply.

-$1.6

-$1.6

TY 2017

 

Modified the refundable Child and Dependent Care Credit to allow start of phase-out to mirror federal child and dependent care credit. ($50,000 FAGI)

-$16.9

-$18.9

TY 2017

Mississippi

Created a new income tax deduction for contributions made to the The Mississippi Achieving a Better Life Experience (ABLE) accounts. The program was established for the purpose of encouraging saving private funds to pay for expenses of eligible individuals with disabilities.

Unable to determine the fiscal impact

Unable to determine the fiscal impact

3/20/2017

Missouri

Enacted legislation that authorizes an income tax deduction for 50 percent of the net capital gain from the sale or exchange of employer securities of a Missouri corporation to a qualified Missouri employee stock ownership plan (ESOP).

-$10.3

$0.0

 

1/1/2017

 

As of Jan. 1, 2017 the maximum individual income tax rate is lowered from 6.0 percent to 5.9 percent. This is a result of legislation passed in 2014 that reduced the maximum individual income tax rate from 6 percent to 5.5 percent, in a series of incremental 0.1 percent steps. The estimated fiscal impact to the state when the rate reduction is fully phased in on Jan. 1, 2023, is -$621 million.

-$80.0

-$80.0

1/1/2017

New Jersey

Enacted legislation to increase annually, in equal increments, pension income exclusion, from $20,000 married filing joint (m/f/j) to $100,000 by Tax Year 2020. The fiscal impact is expected to be between -$60 and -$90 million in FY 2018 and between -$70 and -$105 million in FY 2019.

-$75.0

-$87.5

TY 2017

 

Provided a tax credit for certain health care professionals that provide services to Gold Star families.

Fiscal impact unknown

Fiscal impact unknown

1/1/2018

New York

Converted the New York City personal income tax School Tax Relief (STAR) program rate reduction into a New York State personal income tax credit. The State currently reimburses the City for the amount of this rate reduction.

$0.0

-$340.0

4/10/2017

 

Extended the Millionaire's Tax for two years. This tax established a rate of 7.85 percent for single taxpayers earning more than $300,000 annually, and a rate of 8.82 percent for single filers earning more than $1 million annually. It is now set to expire on Dec. 31, 2019. No change in taxpayer liability.

$683.0**

$3,375.0**

1/1/2018

 

Extended the current limitations on itemized deductions for those with incomes exceeding $1 million. This is now set to expire on Dec. 31, 2019. No change in taxpayer liability.

$0.0**

$70.0**

1/1/2018

 

Enacted legislation to enhance the Child and Dependent Care tax credit. The out-year fiscal impact is expected to be -$47 million.

$0.0

$0.0

1/1/2018

 

Allowed for the full deduction of union dues. Out-year fiscal impact is expected to be -$35 million.

$0.0

$0.0

1/1/2018

North Carolina

Enacted a series of changes to the personal income tax including: reducing the personal income tax rate from 5.499 percent to 5.25 percent beginning Jan. 1, 2019; increasing the standard deduction to from $17,500 to $20,000 (MFJ), effective Jan. 1, 2019; changing the standard deduction for the head of household to 75 percent of MFJ, previously was 80 percent, effective Jan. 1, 2019; and converting the Child Credit to tiered Child Deduction. This change expands the number of taxpayers who may benefit by converting to five deduction amounts. The top amount begins at $2,500 and decreases by $500 increments as taxpayer income increases.

$0.0

-$383.8

1/1/2019 for all except child deduction change which is effective 1/1/2018

North Dakota

Replaced the Angel Fund Investment tax credit, equal to 45 percent of the amount invested in a certified angel fund, with an Angel Investor income tax credit, which is equal to 35 percent of the amount invested in an in-state qualified business and 25 percent of the amount invested in an out-of-state qualified business. The fiscal impact of the new credit cannot be determined but corporate and individual income taxpayers were claiming between $2 million and $7 million per year under the previous angel fund investment tax credit.

N.A.

N.A.

7/1/2017

Ohio

Increased college savings plan tax credit.

$0.0

-$6.9

TY 2018

 

Eliminated bottom two personal income tax brackets. The minimum bracket now begins at $10,501 of taxable income.

-$3.0

-$3.0

TY 2017

Oklahoma

Froze the state standard deduction equal to the TY 2017 federal standard deduction. No change in taxpayer liability.

$4.4**

$14.5**

1/1/2017

 

Eliminated the trigger mechanism which could have reduced the top marginal individual income tax rate to 4.85 percent from 5 percent, contingent on certain revenue growth. No change in taxpayer liability.

N.A.**

N.A.**

11/1/2017

 

South Carolina

Created a refundable vehicle maintenance tax credit. The credit amount is the lesser of the impact of the two-cent increase in gas tax or actual vehicle maintenance cost.

-$40.0

-$65.0

7/1/2017

 

Enacted a nonrefundable tax credit equal to 125 percent of the federal Earned Income Tax Credit that will be phased in over six years.

N.A.

-$20.4

1/1/2018

 

Increased the wage limit for a nonrefundable two wage earner tax credit from $30,000 to $50,000 over six years.

N.A.

-$3.3

1/1/2018

 

Increased the refundable tuition tax credit to four-year and two-year institutions. The rate went from 25 percent of tuition up to $850 for a four-year school and up to $350 for a two-year school, to 50 percent of tuition up to $1,500 for four-year and two-year schools.

N.A.

-$6.2

1/1/2018

 

Increased the maximum threshold for refundable tax credits claimed for contributions to the Educational Credit for Exceptional Needs Children Fund. The maximum threshold increased from $10 million to $11 million.

-$1.0

-$1.0

7/1/2017

Tennessee

Decreased the Hall Income Tax rate. The previous 5 percent rate will be 4 percent for tax year 2017. It will continue to decrease by 1 percent each tax year following until it phases out completely in tax year 2021. (e.g., 3percent for tax year 2018; 2percent for tax year 2019; 1 percent for tax year 2020; 0 percent for 2021 and after)

-$35.6

-$71.2

TY 2017

 

Established a Hall Income Tax credit equal to 33 percent of the value of an investment by an angel investor, if certain conditions apply.

-$1.9

-$2.6

TY 2017

Utah

Enacted a phase out for the individual income tax credit for certain renewable energy systems.

N.A.

-$2.1

5/1/2017

Vermont

Lowered "safe harbor" reporting percentage from 0.2 percent to 0.1 percent of adjusted gross income and established a $500 cap for total use tax liability. This safe harbor allows for a simple method of determining taxpayer liability to encourage better reporting of use tax liability.

$1.8

$1.8

1/1/2017

 

Changed income tax starting point to begin at federal adjusted gross income (AGI) rather than at federal taxable income starting in tax year 2018.

N.A

N.A.

1/1/2018

Virginia

Limited the Historic Rehabilitation Tax Credit by prohibiting a taxpayer from claiming more than $5.0 million for tax years 2017 and 2018. This language does not limit the amount of credits that could be issued by the Department of Historic Resources, but it does impact the timing of when large credit amounts could be claimed.

$9.9

$9.9

TY 2017

 

Limited the Land Preservation Tax Credit amount that can be claimed on each annual tax return to $20,000 for a single filer and $40,000. Terminates for tax years beginning on or after Jan. 1, 2018.

$8.1

N.A.

1/1/2017

West Virginia

Updated the meaning of federal adjusted gross income (AGI).

$0.0

$0.0

1/1/2017

Wisconsin

Enacted legislation to prohibit the same income from being claimed on the manufacturing and agriculture credit and on taxes paid to other states credit.

$9.7

$9.7

TY 2017

 

Updated references to the IRC to include provisions in effect on Dec. 31, 2016, with exceptions.

-$0.6

-$5.6

TY 2017

 

Enacted legislation to limit the Taxes Paid to Other States Credit to the amount of tax that would be paid if the same income was taxed in Wisconsin.

$11.3

$9.0

TY 2017

 

Repealed the alternative minimum tax (AMT). Fiscal impact is -$1.75 million FY 2018. Total ongoing fiscal impact is expected to be -$7 million.

$0.0

-$1.8

TY 2019

 

Enacted legislation that requires homestead tax credit claimants to have earned income in order to qualify for the credit.

$0.0

$7.0

TY 2018

 

Enacted changes that require homestead tax credit claimants to report disqualified losses, generally defined as business losses, when determining household income for the purposes of the credit.

$1.6

$1.6

TY 2017

 

 

 

Appendix F: Corporate Income Tax and Gross Receipts Taxes

 

State

Description

FY 2018 Amount

(in millions)

FY 2019 Amount

(in millions)

Effective Date

Alabama

Enacted a credit equal to 20 percent of accrued cost of qualified irrigation equipment, and the cost of constructing a qualified reservoir. This credit becomes effective on Jan. 1, 2018 and terminates on Dec. 31, 2022. The fiscal impact reflects the corporate and individual combined.

N.A.

-$4.3

1/1/2018

 

Enacted a Rehabilitation of Historic Structures Credit equal to the lesser amount of the tax credit reservation or 25 percent of actual qualified rehabilitation expenditures. This credit becomes effective on Jan. 1, 2018 and terminates on Dec. 31, 2022. The fiscal impact reflects the corporate, individual and sales tax combined.

N.A.

-$20.0

1/1/2018

Arizona

Enacted legislation that allows businesses to subtract expenses incurred to comply with the federal Americans with Disabilities Act (ADA).

$0.0

-$1.3

1/1/2018

Colorado

Enacted favorable apportionment for certain data centers handling financial transactions.

N.A.

-$2.4

 

7/1/2018

 

Allowed for transferability of certain business tax credits for certain manufacturing firms. This change is set to terminate TY 2029.

N.A.

-$5.6

TY 2019

 

Expanded state credit for business personal property tax paid to local governments.

N.A.

-$9.8

TY 2019

Connecticut

Allowed a phase out of the 20 percent Corporate Tax Surcharge on the 7.5 percent rate. Terminates 2019 income year.

-$22.5

-$60.0

2018 Income Year

 

Repealed the scheduled cap increase on the Neighborhood Assistance Act tax credits. The cap was scheduled to increase from $5 million to $10 million. No change in taxpayer liability.

$5.0**

$5.0**

10/31/17

 

Deferred the first year a FAS 109 Corporate Tax Deduction can be claimed from 2018 to 2021 and extended the deduction over a thirty-year period rather than seven. No change in taxpayer liability.

$20.3**

$34.0**

2018 Income Year

 

Allowed film and digital media production tax credits to be claimed against the Public Services Companies Tax at a discount. It was previously able to be claimed against corporate income tax and the insurance premiums tax.

$1.4

$3.3

10/31/17

Delaware

Enacted changes to the corporate franchise tax. Increased the maximum annual franchise tax from $180,000 to $200,000 and established a new $250,000 annual tax tier for "large corporate filers," effective Jan 1., 2017. Also, increased the late filing penalty from $300 to $500, effective Aug. 1, 2017.

$116.1

$116.1

1/1/2017; 8/1/2017

Florida

Increased the corporate income tax credit for brownfield cleanup by $5 million per year.

-$5.0

-$5.0

7/1/2017

 

Increased the corporate income tax credit for research expenses for calendar year 2018 from $9 million to $16.5 million.

-$5.4

-$2.1

7/1/2017

 

Extended the corporate income tax credit for community contributions indefinitely at $14 million per year. It was originally set to expire after FY 2019.

$0.0**

-$14.0**

7/1/2017

Georgia

Enacted a Historic Downtown Revitalization Tax Credit. This credit applies to any certified investors who acquire and develop property in a revitalization zone on or after Jan. 1, 2018. Additional credits are available for each new full-time equivalent job created in this district.  This credit will be terminated on Dec. 31, 2027 unless reauthorized by the legislature prior to this date. These credits can be used toward corporate or personal income tax liability. The revenue impact is a combined estimate.

No Estimate

-$1.0

1/1/2018

 

Created a nonrefundable nontransferable income tax credit for certain expenditures by a production company for live or recorded musical or theatrical performances. A qualified production company will receive a tax credit equal to 15 percent of qualified expenditures with the option of an additional 5 percent credit for qualified production expenditures occurring in designated counties. These credits are available beginning on Jan. 1, 2018 and is set to expire on Jan. 1, 2023. These credits can be used toward corporate or personal income tax liability. The revenue impact is a combined estimate.

-$1.1

-$5.0

1/1/2018

 

Enacted the Georgia Entertainment Industry Post-Production Investment Act. This act provides a 20 percent income tax credit on all qualified postproduction expenditures incurred by a post-production company. An additional 10 percent credit is allowed if the qualified postproduction expenditures were incurred in the state of Georgia, and an additional 5 percent credit is allowed if these expenditures occurred in a designated county. These credits are available beginning Jan. 1, 2018 and will expire on Jan. 1, 2023. These credits can be used toward corporate or personal income tax liability. The revenue impact is a combined estimate.  Additionally, this act modified and removed the sunset date for income tax credits for interactive entertainment companies.

-$5.1

-$14.8

1/1/2018

 

Enacted an income tax credit for qualified education donations to the Public Education Innovation Fund. These credits can be used toward personal or corporate income tax liability. The credits are set to expire on Dec. 31, 2020.

-$5.0

-$5.0

1/1/2018

 

Increased the tax credits available to individuals or entities that make contributions to rural hospital organizations. This legislation also changed the program cap to a flat $60 million per tax year, rather than $50 million in FY 2017, $60 million in FY 2018, and $90 million in FY 2019. These credits can be used towards either personal or corporate income tax liability; the revenue impact is a combined estimate. The credits set to expire on Dec. 31, 2019.

-$5.0

$5.0

1/1/2017

 

Eliminated the corporate net worth tax on corporations with a value less than $100,000.

-$1.2

-$4.3

1/1/2018

Hawaii

Extended the state film tax credit until 2026. Capped the annual amount of credits that may be claimed at $35 million. No change in taxpayer liability.

N.A.**

-$35.0**

1/1/2018

Illinois

Increased corporate income tax rate from 5.25 percent to 7.0 percent.

$514.0

N.A.

7/1/2017

 

Closed several corporate tax loopholes.

$125.0

N.A.

12/31/2017

 

Reinstated the Research and Development Credit. The credit is retroactive for TY 2016.

-$70.0

N.A.

TY 2016 (Retroactive)

Indiana

Extended an existing state and local NBA All-Star Game tax exemption. All property owned by the National Basketball Association (NBA) and its affiliates, revenue of the NBA and its affiliates, expenditures and transactions of the NBA and its affiliates in connection with a NBA All-Star Weekend, and resulting from holding the associated events in Indiana or making preparatory advance visits to Indiana in connection with a NBA All-Star Weekend, are exempt from all state and local taxes. The exemption does not apply to salaries and wages paid to employees of the NBA and its affiliates that are ordinarily subject to Indiana state and local income taxation. If a NBA All-Star weekend is held in Indiana, the foregone revenue could be significant. However, this could be offset by a potentially significant increase in other tax revenue generated from the events. No change in taxpayer liability.

N.A.**

N.A.**

7/1/2017

 

Increased the cap for School Scholarship Income Tax Credits. This credit is available for individuals or corporations who donate to scholarship granting organizations. The revenue impact is a combined estimate Cap is increased to $12.5 million in Fiscal Year 2018, and to $14 million each year thereafter.

-$1.8

-$3.3

1/1/2018

 

Removed the Dec. 31, 2020 sunset date for the Venture Capital Investment tax credit. No change in taxpayer liability.

N.A.**

N.A.**

1/1/2018

 

Removed the Dec. 31, 2020 sunset date for the Hoosier Business Investment tax credit. No change in taxpayer liability.

N.A.**

N.A.**

1/1/2018

 

Continued to phase in the reduction of the corporate income tax from 8.5 percent in FY 2012 to 6.0 percent in FY 2018.  In the 2014 session the corporate income tax rate was further phased down from 6.5 percent in FY 2016 to 6.0 percent in FY 2018 and 5.75 percent in FY 2019. The rate will continue to phase down to 4.9 percent in FY 2022 and thereafter. The phased-down rate becomes effective at the beginning of each fiscal year.

-$176.0

-$201.0

The new phased down rate is effective at the beginning of each fiscal year.

 

Continued to phase in the reduction of the Financial Institution Tax (FIT) from 8.5 percent in Calendar Year 2013 to 6.5 percent in CY 2017. The law also changed the distributions of the FIT revenues. In the 2014 session the FIT rate was further phased down from 6.5 percent in CY 2018, 6.25 percent in CY 2019, and 4.9 percent in CY 2023 and thereafter. The new phased-down rate becomes effective at the beginning of each calendar year. Enacted a requirement that a person who rents rooms in a house, condo or apartment for less than 30 days must collect sales tax.

-$23.0

-$24.0

The new phased down rate is effective at the beginning of each calendar year.

Louisiana

Revised the film tax credit program. Credit claims are continued at a maximum of $180 million per year indefinitely, although under-realizations in one year can increase the cap in the following year. Credit issuances are capped at $150 million per year. Direct buyback of credits is increased from 85 to 90 percent of face value and full-face value of buyback credits is to be charged against the claims payment cap. No new credits can be issued from July 1, 2025.

Stabilize costs, no estimate

Stabilize costs, no estimate

7/1/2017

 

Revised the musical and theatrical production tax credit program. Credit issuances are capped at $10 million per year, although under-issuance in one year can increase the issuance cap in the following year. No new credits can be issued from July 1, 2025.

Stabilize costs, no estimate

Stabilize costs, no estimate

7/1/2017

 

Extended participant entry into the Enterprise Zone program by four years from July 1, 2017 to July 1, 2021. Net receipts will be lower than they would otherwise be as program participation continues. No change in taxpayer liability.

Decrease**

Decrease**

7/1/2017

 

Terminated participant entry into the corporate tax apportionment program, the angel investor tax credit, the urban revitalization tax credit program, and accelerated the repeal of the Motion Picture Incentive Act, on either July 2017 or July 1, 2021.

N.A.

Increase

Various Dates

 

Prohibited new participant entry to a number of incentive/subsidy programs ranging from July 1, 2017 to July 1, 2022. Also makes extensive changes to the Quality Jobs Program (QJP) of payroll subsidy. Most of the net revenue gain from the bill comes from changes to QJP that constrain participation in the program. The program is expected to produce a revenue loss of $10.4 million in FY 2020.

N.A.

N.A.

7/1/2017

 

Expanded participation and extended the sound recording tax credit program to Jan. 1, 2021. Existing program credit cap of $2.16 million per year is maintained. Participation has never approached cap, but with this bill's expansion of eligible potential participants, credits above historical norm are possible, increasing state fiscal exposure above utilization of the current credit.

N.A.

-$2.0

8/1/2017

 

Maryland

Extended the employer security clearance costs tax credit through Dec. 31, 2021. This tax credit can be used against personal and corporate income tax. No change in taxpayer liability.

N.A.**

-$1.9**

7/1/2017

 

Expanded the research and development tax credit. Increased the aggregate amount of credits that may be approved annually from $9 million to $12 million. The incentive can be credited against personal or corporate income tax. The revenue impact is a combined estimate.

-$2.4

-$2.6

7/1/2017

 

Enhanced expensing and bonus depreciation for all manufacturers for property placed into service on or after Jan. 1, 2019 by conforming state law to the maximum aggregate costs of expensing allowed under Section 179 of the Internal Revenue Code (IRC) and to claim any bonus depreciation amounts provided under Section 168(k) of the IRC. Out-year revenue losses due to IRC conformity equal $30.9 million in FY 2020, $6.8 million in FY 2021, and $4.5 million in FY 2022.

N.A.

N.A.

6/1/2017

 

Enacted a refundable credit for qualifying new manufacturing business in certain counties or existing manufacturers in certain counties who create the required number of qualified positions at eligible manufacturing facilities. Credit for up to 10 years is equal to the total wages paid for qualified positions multiplied by 5.75 percent. The total amount of credits issued each fiscal year generally cannot exceed $9 million.

N.A.

-$9.0

TY 2018

Massachusetts

Enacted a Veterans Hire Tax Credit. This credit allows entities that hire veterans a tax credit equal to $2,000 for each qualified veteran hired.

-$1.0

-$1.0

7/1/2017

 

Placed a cap on the Life Science Tax Incentive.

$5.0

N.A.

7/1/2017

Minnesota

Updated IRC conformity for Section 179 Expensing, 80 percent addback and five-year recovery for corporate income taxes.

$3.4

$2.5

TY 2015

 

Updated IRC conformity for corporate income taxes. Conformed to 50 percent bonus depreciation for TY 2015 to TY 2017 and 40 percent from TY 2018 and 30 percent for TY 2019 using the 80 percent addback and five- year recovery method. Effective Tax Year 2015 and expires after Tax Year 2019.

$15.2

$7.3

TY 2015

 

Updated IRC conformity in corporate income taxes related to 15-year straight line depreciation for leasehold, restaurant and retail improvements and new restaurants.

-$1.7

-$2.4

TY 2015

 

Updated IRC conformity by reducing the recognition period for S corporation built in gains.

-$1.2

-$0.8

TY 2015

 

Updated IRC conformity relating to the exception under Subpart F for active financing income.

-$4.3

-$4.4

TY 2015

 

Modified the Research and Development Credit. The second-tier rate increased to 4 percent.

-$10.6

-$8.4

TY 2017

 

Modified the definition of "financial institutions" to include non-corporate entities.

$5.0

$5.0

TY 2017

 

Modified the definition of the term "insurance company."

$2.0

$2.0

TY 2017

 

Modified the treatment of gain on certain installment sales of an interest in a Minnesota pass-through entity to be recognized on an accelerated basis.

$1.1

$2.2

TY 2017

Nevada

Authorized $10 million per fiscal year in tax credits for qualifying film projects in the state. Any portion of the $10 million not approved in a fiscal year may be carried forward to future fiscal years. Tax credits can be used by the recipient or transferred to taxpayer, but tax credits can only be declared and used against the Modified Business Tax, Gaming Percentage Fee Tax, or Insurance Premium Tax.

-$10.0

-$10.0

7/1/2017

 

Authorized an additional $20 million in tax credits against the Modified Business Tax (MBT) awarded on a dollar for dollar basis for a donation made by an MBT taxpayer to a qualified tuition scholarship organization under the Nevada Educational Choice Scholarship Program.  The $20 million in FY 2018 is in addition to the $6.05 million for FY 2018 and $6.655 million for FY 2019 for this program from 2015 session legislation.

-$20.0

$0.0

7/1/2017

New Hampshire

Increased Research and Development Tax Credit from $2 million to $5 million in aggregate.

$0.0

$0.0

7/1/2017

 

Lowered Business Profits Tax rate from 8.2 percent to 7.9 percent. The rate will decrease again to 7.7 percent July 1, 2019. The revenue estimates are combined totals of these changes.

-$5.2

-$14.8

1/1/2017

 

Lowered the Business Enterprise Tax from 0.72 percent to 0.675 percent. The rate will decrease to 0.6 percent July 1, 2019. The revenue estimates are combined totals of these changes.

-$3.9

-$17.1

1/1/2017

 

Increased Section 179 deduction from $100,000 to $500,000.

$0.0

-$9.7

1/1/2018

New Jersey

Increased cap on Economic Recovery and Growth tax credits by $105 million.

Fiscal impact unknown

Fiscal impact unknown

5/1/2017

New Mexico

Added back certain deductions to include costs paid to captive real estate trusts in "net income" definition. Expands base up to $27 million by adding back certain deductions.

$0.5

$1.0

6/16/2017

New York

Provided a tax credit to farmers that make donations to food pantries. Out year fiscal impacted expected to be -$10 million.

$0.0

$0.0

1/1/2018

 

Closed a loophole in the sale of co-ops. Gains from the sales of co-operative shares are now included as a non-resident's New York source income.

$10.0

$10.0

1/1/2017

 

Closed a loophole in nonresident asset sales. Requires non-resident sellers of partnership assets that are subject to IRC Section 1060 to classify the transaction as the sale of as asset.

$10.0

$10.0

1/1/2017

 

Extended the Empire State Film Production Tax Credit for three years. The credit is now set to expire on Dec. 31, 2022. The out year fiscal impact for the state is expected to be -$420 million. No change in taxpayer liability.

$0.0**

$0.0**

1/1/2016

 

Extended the Youth Works Tax Credit for five years. The program is now set to expire on Dec. 31, 2022. The out-year fiscal impact for the state is expected to be -$40 million. No change in taxpayer liability.

$0.0**

$0.0**

1/1/2018

 

Extended the credit for purchasing or upgrading a for-hire Created the Empire State Apprenticeship Tax Credit. A certified employer will be entitled to tax credits against income or franchise tax for each qualified apprentice. Out-year fiscal impact is expected to be -$10 million. The credit is set to expire on Dec. 31, 2022.

$0.0

$0.0

1/1/2018

 

Extended the Alternative Fuels and Electric Vehicle Recharging Property Credit for five years. The credit is now set to expire on Dec. 31, 2022. No change in taxpayer liability.

$0.0**

$0.0**

1/1/2018

 

Provided for a technical fix of the investment tax credit. This disallows property principally used in the production or distribution of electricity, natural gas, steam, or water.

$0.0

$0.0

1/1/2018

North Carolina

Reduced corporate income tax rate from 3.0 percent to 2.5 percent.

N.A.

-$65.2

1/1/2019

 

Extended sunset/deadline for certain Renewable Energy Credits. No change in taxpayer liability.

$0.5**

$0.5**

7/1/2017

 

Reduced S Corporation Franchise Tax by applying a flat $200 fee on the first $1 million of the calculated base. The amount of the tax base that exceeds $1 million will be subject to the previous rate of $1.50 per $1,000 of tax base.

$0.0

-$19.0

1/1/2018

North Dakota

Replaced the Angel Fund Investment tax credit, equal to 45 percent of the amount invested in a certified angel fund, with an Angel Investor income tax credit, which is equal to 35 percent of the amount invested in an in-state qualified business and 25 percent of the amount invested in an out-of-state qualified business. The fiscal impact of the new credit cannot be determined but corporate and individual income taxpayers were claiming between $2 million and $7 million per year under the previous angel fund investment tax credit.

N.A.

N.A.

7/1/2017

 

Legislation enacted by the 2015 Legislative Assembly allows taxpayers to elect an alternate income tax apportionment method. The legislation allows a double weighted sales factor apportionment election for tax year 2016 and 2017, a 75 percent weighted sales factor apportionment election for tax year 2018, and a single sales factor apportionment election for tax years 2019 and forward.

-$7.5

-$16.3

1/1/2015

Oklahoma

Reduced the total, statewide maximum rebate amount for film industry rebates from $5 million to $4 million annually.

$1.0

N.A.

7/1/2017

Oregon

Changed the sales factor of the corporate income tax apportionment formula from cost of performance to market-sourcing for purposes of determining sales factor applicable to intangible property and services.

$0.0

$5.5

1/1/2018

Pennsylvania

Required withholding of current tax liabilities by businesses paying income to out-of-state lessors of real estate and contract employees working in-state.

$9.8

$24.6

10/30/2017

Tennessee

Authorized annualized method for quarterly estimated F&E tax payments. Extended time for exemption applications. Decreased the penalty for late filings, from $1,000 to $200, for such exemption applications.

-$3.7

-$0.3

1/1/2017

 

Authorized manufacturers to elect a sales only apportionment formula for F&E tax purposes.

-$102.1

-$113.3

TY 2017

 

Revised various provisions concerning the taxation of modern market telecommunication providers (MMTPs), including an imposition of a new privilege tax on MMTPs, and reclassification of MMTPs to industrial and commercial property. The maximum rates are $4,750,000 in FY 2018, $3,750,000 in FY 2019, $2,750,000 in FY 2020, $1,500,000 in FY 2021, and $500,000 in FY 2022. The privilege tax on MTTPs terminates Dec. 31, 2022.

$4.0

$3.0

Various Dates

Utah

Established an oil and gas severance tax credit for a taxpayer that produces natural gas for use in the production of hydrogen fuel for zero emission motor vehicles.

N.A.

-$3.4

5/1/2017

Washington

Extended the states B&O tax economic nexus provisions to taxpayers engaged in making retail sales.

$2.0

$7.7

7/1/2017

 

Extended Motion Picture Competitiveness B&O Tax Credit set to expire on July 1, 2017 to a new sunset date of July 1, 2027. The legislature reduced the maximum credit that can be claimed by an individual annually from $1 million to $750,000.

-$3.2

-$3.2

 7/1/2017

West Virginia

Updated the meaning of federal taxable income.

$0.0

$0.0

1/1/2017

Wisconsin

Limited the amount of historic rehabilitation credits that a claimant can be certified to receive to no more than $500,000 per parcel beginning July 1, 2018. Total ongoing fiscal impact is projected to generate $47.39 million in new revenue.

$0.0

$1.2

7/1/2018

 

Limited the net operating loss recomputation period to no more than four years beyond the due date for filing the original return for the tax year in which the loss was incurred.

$1.0

$1.0

9/23/2017

 

Modified the apportionment formula for broadcasters. Total ongoing fiscal impact is projected to be -$13 million.

$0.0

-$3.2

TY 2019

 

Converted 10 percent of the existing nonrefundable research credit into a refundable credit. Total ongoing fiscal impact is projected to be -$9 million.

$0.0

-$2.1

TY 2018

 

Provided refundable electronics information technology manufacturing zone credits for zone payroll and capital expenditures by a business, Foxconn Technology Group, that begins operation in a zone and is certified to receive the credits. These credits are available for no more than 15 years following the certification of the company for credits. The total fiscal impact of this tax change is expected to be -$2.85 billion over the 15-year period.

$0.0

-$2.4

9/20/2017

 

Provided refundable enterprise zone tax credits for a financial services technology business, Fiserv, Inc., certified to receive credits if, after completing a competitive relocation process, it retains its corporate headquarters and at least 93 percent of its employees in the state and maintains certain payroll in the state. These credits can be claimed for no more than five consecutive tax years. This change will result in a loss of $2 million annually for up to 5 years.

$0.0

-$2.0

9/20/2017

 

 

 

 

Appendix F: Sales and Use Taxes

 

State

Description

FY 2018 Amount

(in millions)

FY 2019 Amount

(in millions)

Effective Date

Alabama

Enacted a Rehabilitation of Historic Structures Credit equal to the lesser amount of the tax credit reservation or 25 percent of actual qualified rehabilitation expenditures. This credit becomes effective on Jan. 1, 2018 and terminates on Dec. 31, 2022. The fiscal impact reflects the corporate, individual and sales tax combined.

N.A.

-$20.0

1/1/2018

Arizona

Enacted legislation that exempts aircrafts purchased to be used in a fractional ownership program from sales tax.

Indeterminate

Indeterminate

1/1/2018

Arkansas

Provided a phase in reduction in the sales and use tax rate for manufacturers' purchases of qualifying repairs, replacements and services over five years.

-$1.0

-$1.0

7/1/2018

California

The temporary state sales tax rate created by Proposition 30 of 2012 expired on Jan. 1, 2017. The temporary state sales tax rate created by Proposition 30 of 2012 expired on Jan. 1, 2017. The state general fund rate fell 0.25 percent from 4.19 percent to 3.94 percent.

-$1,600.0

-$1,600.0

1/1/2017

 

Expanded and extended partial sales tax exemption for equipment.

-$22.0

-$45.0

1/1/2018

Colorado

Exempted recreational marijuana from the 2.90 percent state sales tax. This exemption was passed in conjunction with an increase in the special sales tax on recreational marijuana.

-$30.1

-$33.4

7/1/2017

Florida

Enacted a sales tax exemption for resale of admissions to tax-exempt entity.

-$1.2

-$3.1

1/1/2018

 

Enacted a sales tax exemption for certain animal and aquaculture health care products.

-$2.7

-$2.7

7/1/2017

 

Created a back-to-school sales tax holiday for certain clothing, school supplies, and computers.

-$33.2

N.A.

8/4/2017

 

Reduced the sales tax rate on rental of real property from 6 percent to 5.8 percent.

-$25.4

-$63.9

2/1/2018

 

Enacted a disaster preparedness sales tax holiday from June 1 through June 7, 2018.

-$4.5

N.A.

6/1/2018

 

Established a sales tax exemption for construction materials in rural areas of opportunity.

N.A.

-$6.0

7/1/2017

 

Established a sales tax exemption for feminine hygiene products.

-$4.8

-$11.3

1/1/2018

 

Established a sales tax and gross receipts tax exemption for data center property meeting certain criteria and constructed between July 1, 2017 and June 30, 2022.

-$0.9

-$1.4

7/1/2017

Georgia

Enacted a sales and use tax exemption on materials used to maintain concrete mixer trucks.

-$1.0

-$1.0

7/1/2017

 

Enacted sales tax exemptions on building materials for the expansion of theatres containing an art museum and symphonic hall and tickets to fine arts performances. This exemption is set to expire Jan. 1, 2019.

-$4.0

-$4.0

7/1/2017

Hawaii

Enacted a general excise tax exemption for qualified affordable housing projects effective July 1, 2017 to June 30, 2022.

-$7.0

-$7.0

7/1/2017

Illinois

Eliminated the current 20 percent exemption from sales of gasohol. The exemptions for ethanol and biodiesel fuels are extended through Dec. 31, 2023.

$100.0

N.A.

7/1/2017

 

Expanded the Manufacturing and Assembling Machinery and Equipment exemption to include graphic arts machinery and equipment.

-$10.0

N.A.

7/1/2017

Indiana

Enacted a sales tax exemption for components of a drainage water management system designed to facilitate controlled water drainage on agricultural land used for crop production. The fiscal impact for this exemption ranges from -$0.1 million to -$2.4 million annually.

-$1.3

-$1.3

7/1/2017

 

Expanded the current sales tax exemption for prosthetic devices to include devices that are acquired without a prescription or drug order if they are fitted or dispensed by a person licensed or registered for that purpose. The fiscal impact for this change is indeterminable, but may reduce sales tax revenue by a significant amount.

Indeterminable, but potentially a significant decrease

Indeterminable, but potentially a significant decrease

7/1/2017

 

Exempted special fuels from use tax.

-$25.0

-$27.8

7/1/2017

 

Extended an existing state and local NBA All-Star Game tax exemption. All property owned by the National Basketball Association (NBA) and its affiliates, revenue of the NBA and its affiliates, expenditures and transactions of the NBA and its affiliates in connection with a NBA All-Star Weekend, and resulting from holding the associated events in Indiana or making preparatory advance visits to Indiana in connection with a NBA All-Star Weekend, are exempt from all state and local taxes. The exemption does not apply to salaries and wages paid to employees of the NBA and its affiliates that are ordinarily subject to Indiana state and local income taxation. If a NBA All-Star weekend is held in Indiana, the foregone revenue could be significant. However, this could be offset by a potentially significant increase in other tax revenue generated from the events. No change in taxpayer liability.

N.A.**

N.A.**

7/1/2017

Iowa

Enacted legislation subjecting online e-cigarette sales to the state sales tax rate of 6.0 percent.

$1.0

$1.1

7/1/2017

Kentucky

Enacted sales and use tax credit for the purchase of aircraft fuel. Tax credit is equal to the amount of sales tax due exceeding $1 million each fiscal year. Applies to persons who contract with one or more certificated air carriers for the transportation by of persons, property, or mail by air.

-$3.0

-$3.0

7/29/2017

Louisiana

Extended the Tax Free Shopping Program for foreign tourist sales tax exemption, for six more years until July 1, 2023. No change in taxpayer liability.

-$1.2**

-$1.2**

6/22/2017

 

Expanded the type of construction contracts that are afforded protection from sales tax increases during the contract period. Substantial exposure to revenue loss is possible.

Decrease

Decrease

7/1/2017

 

Enacted legislation that created the Louisiana Uniform Local Sales Tax Board among other provisions. Dedicated up to 1 percent of state sales tax receipts from remote sellers should federal law be passed that required remote sellers to collect and remit state and local sales tax. This tax change is contingent upon federal law.

Decrease

Decrease

6/16/17

Maine

Question 1 approved on the November 2016 citizen's ballot initiative legalized the possession and use of marijuana by a person 21 years of age or older. This bill places a 10 percent sales tax on sales of retail marijuana and retail marijuana products.

$2.3

$10.5

2/1/2018

Maryland

Enacted an exemption for the first $40 of the taxable price of any backpack or bookbag purchased during the annual tax-free period for back-to-school shopping. Fiscal impact is indeterminate but under one set of assumptions, revenue decrease is estimated to exceed $1 million annually.

-$1.0

-$1.0

7/1/2017

 

Authorized a refund for purchases of personal property and/or services for use at a manufacturing facility by qualifying manufacturers made on or after Jan. 1, 2018. Total amount of refunds issued in each fiscal year generally cannot exceed $1.0 million.

$0.0

-$1.0

1/1/2018

Michigan

Enacted a transformational brownfield tax capture. Sales of tangible personal property for use in an eligible activity on eligible property within a transformational brownfield. The fiscal impact is unknown. When combined with the construction period income tax capture, it is capped at a total of $200 million over all years.

Unknown

Unknown

7/28/2017

Minnesota

Modified an exemption for qualified businesses in Greater MN by providing for a refund.

-$5.0

-$5.0

7/1/2017

 

Expanded exemption for telecommunication or pay television services machinery and equipment to include fiber and conduit.

-$3.2

-$3.7

7/1/2017

 

Expanded the exemption for Super Bowl admission to include parking and related events sponsored by the NFL, affiliates, or the Minnesota Super Bowl Host Committee. Effective July 1, 2017 and expires after March 1, 2018.

-$1.0

$0.0

7/1/2017

 

Created an exemption on suite licenses and stadium builder licenses.

-$3.3

-$3.4

7/1/2017

 

Enacted an exemption on certain special fuels.

-$2.4

-$2.8

7/1/2017

 

Created an exemption on nontaxable food and beverages sold through vending machines.

-$1.8

-$2.0

7/1/2017

 

Modified the exemption for "building materials and supplies used in certain capital projects" to include St. Paul Soccer Stadium and infrastructure.

-$1.3

$0.9

7/1/2017

 

Modified the exemption for "building materials and supplies used in certain capital projects" by refund for construction materials for the City of Plymouth. This change is retroactive to Jan. 1, 2013.

-$1.8

-$0.8

Retroactive 1/1/2013

 

Modified the definition of real property and tangible personal property for determining when sales and use tax is due.

-$7.1

-$7.3

5/30/2017

Mississippi

Enacted a sales tax exemption for frac sand producers when building a new facility, and an ongoing exemption for utilities used in operations.

Unable to determine fiscal impact.

Unable to determine fiscal impact.

7/1/2017

New Jersey

Enacted a general sales and use tax two-step rate reduction. The first step takes effect on Jan. 1, 2017 and reduces the state sales and use tax rate from 7.0 percent to 6.875 percent. The second step takes effect on Jan. 1, 2018 and reduces the state sales and use tax rate further, from 6.875 percent to 6.625 percent. This is expected to have a combined fiscal impact of -$392.2 million in FY 2018 and -$592.8 million in FY 2019.

-$392.2

-592.8

1/1/2017

 

Elimination of Sales and Use Tax imposition on transportation services originating in New Jersey and provided by a limousine operator.

Fiscal impact unknown

Fiscal impact unknown

2/10/2017

North Carolina

Enacted a sales tax exemption for fulfillment facilities.

-$6.4

-$0.5

7/1/2017

 

Repealed the 1 percent privilege tax on mill machinery and replaced it with a sales and use tax exemption for the items. Additionally, created a sales tax exemption for ready mix concrete.

N.A.

-$52.8

7/1/2018

Ohio

Enacted a sales tax holiday to occur on clothing and school supplies only between Aug. 3-5, 2018.

-$15.2

-$15.2

08/03/2018-8/05/2018

 

Enacted a sales tax exemption for purchases of digital multimedia from an amusement device that accepts direct payments; e.g., a digital jukebox or arcade game. It’s uncertain how much revenue the state will lose from this tax change.

Uncertain loss

Uncertain loss

10/1/2017

Oklahoma

Repealed vendors' 1 percent sales tax "retention discount" for collection and remittance.

$14.0

N.A.

7/1/2017

 

Modified the sales tax exemption for motor vehicle purchase. This provides that a portion of the state sales tax levy (1.25 percent) will apply to the sales of motor vehicles.

$123.4

N.A.

7/1/2017

Pennsylvania

Granted online marketplace providers the option to either collect and remit sales and use tax as if they were the vendor or submit documentation of sales to the Department of Revenue. The Department would then use that information to attempt to collect use tax from purchasers.

$8.0

$50.5

4/1/2018

South Carolina

Raised the maximum sales tax cap on aircraft, boats, trailers, and construction equipment. The old rate was 5 percent of sales value up to $300 per item and the new rate is 5 percent of sales value up to $500 per item.

$1.7

$1.7

7/1/2017

Tennessee

Lowered the sales tax rate on the retail sale of food and food ingredients from 5 percent to 4 percent.

-$119.4

-$119.4

7/1/2017

 

Capped the sales tax rate on a person’s purchase, use, consumption, or storage of aviation fuel that is used in the operation of airplane or aircraft motors shall not exceed the following for any taxpayer: $21,375,000 for the period of July 1, 2015 through June 30, 2016; $17,750,000 for the period of July 1, 2016 through June 30, 2017; $14,125,000 for the period of July 1, 2017 through June 30, 2018; and $10,500,000 for any tax year occurring on or after July 1, 2018. 

-$16.2

-$22.3

5/18/2015

Utah

Modified the refinery sales tax exemption.

$1.0

$2.1

7/1/2017

Virginia

Clarified that the presence of inventory within the state gives rise to retail sales and use tax nexus for out-of-state sellers who make sales to Virginia customers. Out-of-state sellers that use warehouses and/or fulfillment centers within the state will be required to register as dealers for the collection of retail sales and use tax.

$11.1

$11.1

6/1/2017

Washington

Enacted legislation requiring marketplace facilitators and remote sellers to comply with certain use tax reporting requirements or collect and remit Washington sales and use tax if they have at least $10,000 in gross receipts from sales to Washington consumers. Referrers receiving at least $267,000 in gross income from providing referral services apportioned to Washington, must likewise elect to collect and remit or comply with specified use tax notice requirements.

$83.7

$256.8

1/1/2018

 

Repealed the sales tax exemption on bottled water.

$24.5

$30.1

8/1/2017

 

Narrowed the use tax exemption for self-produced fuels to include only biomass fuels effective Jan. 1, 2018. The use tax for refinery fuel gas is 0.963 percent in TY 2018, 1.926 percent in TY 2019, 2.889 percent in TY 2020, and 3.852 percent in TY 2021 and following years.

$1.6

$6.4

1/1/2018

West Virginia

Raised the privilege tax on motor vehicle sales from five percent to six percent. Funds from this increase are dedicated to the State Road Fund. The revenue increase from this change is roughly $41.2 million in FY 2018 and FY 2019.

$41.2

$41.2

7/1/2017

Wisconsin

Delayed effective date of a tax refund until July 1, 2078 for a retailer related to bad debt of an affiliated lender that extends certain credit to that retailer. No change in taxpayer liability.

$10.2**

$10.4**

9/23/2017

 

Expanded the exemption for lump sum contracts to apply to all construction contracts and to subcontractors.

-$1.3

-$1.5

12/1/2017

 

Exempted frozen food and food consisting of more than 50 percent yogurt that is sold by a retailer and prepared by that retailer at a manufacturing establishment away from its retail location.

-$1.2

-$1.2

9/23/2017

 

Exempted tangible personal property sold to certain construction contractors who transfer property to technical colleges or the University of Wisconsin.

N.A.

-$2.5

7/1/2018

Wyoming

Required remote sellers to collect Wyoming sales and use tax if the seller has more than $100,000.00 in sales in Wyoming or 200 separate transactions in Wyoming in any year. Rate of 4 percent plus local option taxes. Revenue impact estimates are indeterminable, but the state potentially could gain $28 million from all remote sales, subject to court action.

$28.0

$28.0

7/1/2017

           

 

 

 

Appendix F: Health Care Provider and Industry Taxes

 

State

Description

FY 2018 Amount

(in millions)

FY 2019 Amount

(in millions)

Effective Date

Connecticut

Modified the hospital provider tax by establishing a formula for calculating the tax rate on inpatient and outpatient hospital services based on the amount of tax revenue specified for the given fiscal year.

$343.9

$343.9

11/21/2017

Minnesota

Exempted supplemental or enhanced medical assistance payments made through authorized intergovernmental transfers from the health care provider tax. Effective for gross revenues received on or after July 1, 2016 and terminates June 30, 2020.

-$4.0

-$2.1

7/1/2016

Montana

Increased nursing home bed tax to increase nursing home reimbursement rates. Bed tax increased from $8.30 per bed per day to $11.30 per bed/day in FY 2018 and $15.30 per bed/day in FY 2019 and thereafter.

$4.5

$10.5

7/1/2017

New Hampshire

Reduced Medicaid Enhancement Tax rate from 5.45 percent to 5.40 percent, rate will drop to 5.25 percent if uncompensated care payments fall below $375 million.

-$2.3

-$2.3

6/30/2018

New York

Extended the Health Care Facility Cash Assessment rate for hospitals and home care providers. The assessment rate is now current through March 31, 2019. No change in taxpayer liability.

$400.0**

$400.0**

4/1/2017

 

Extended the assessment rate for nursing homes at 6.8 percent. The assessment rate is now current through March 31, 2019. No change in taxpayer liability.

$600.0**

$600.0**

4/1/2017

 

Continued Hospital Reimbursement. Includes continuation of the Medicaid inpatient hospital reimbursement methodology and collection of the Health Care Reform Act (HCRA) surcharges and assessments. The law is now current through Dec. 31, 2020. No change in taxpayer liability.

$3,300.0**

$3,400.0*

4/1/2017

 

Extended authorization for the collection of the Covered Lives Assessment. The law is now current through Dec. 31, 2020. No change in taxpayer liability.

$1,100.0**

$1,100.0**

4/1/2017

 

Extended current assessment on inpatient revenues of hospitals. The law is current through Dec. 31, 2020. No change in taxpayer liability.

$424.0**

$424.0**

4/1/2017

Oregon

Created an assessment on insurers at 1.5 percent of gross receipts. This tax change is set to terminate on Jan. 1, 2020.

$29.0

$61.0

1/1/2018

 

Raised the hospital assessment rate from 5.3 percent to 6.0 percent. This increase is set to terminate on Sept. 30, 2021.

$115.0

$239.0

9/30/2017

Rhode Island

Increased hospital license fees from 5.65 percent to 5.86 percent. This fee expires annually.

$13.0

$0.0

FY 2018

Tennessee

Enacted the Ground Ambulance Service Provider Assessment Act, which requires an ambulance service to pay a quarterly assessment to the Bureau of TennCare. This assessment terminates June 30, 2018.

$10.3

N.A.

7/1/2017

West Virginia

Extended and increased the Acute Care Hospital Tax Rate from 0.74 percent to 0.75 percent. Effective July 1, 2017 and expires on June 30, 2018. The legislature has consistently extended the temporary tax for one additional year since its enactment.

$25.5

$8.5

7/1/2017

Wisconsin

Repealed the healthcare provider assessment on ambulatory surgical centers. Old tax rate was 1.2703 percent of gross patient revenues.

-$5.0

-$5.0

9/23/2017

           
 

 

 

 

Appendix F: Tobacco Taxes

State

Description

 FY 2018 Amount

(in millions)

FY 2019 Amount

(in millions)

Effective Date

Connecticut

Increased the excise tax rate on cigarettes from $3.90 to $4.35 per pack and the tax rate on snuff from $1.00 per ounce to $3.00 per ounce.

$35.0

$50.0

12/1/2017

Delaware

Added vapor as a type of tobacco product and increased tobacco related taxes. The tax on cigarettes increased from $1.60 to $2.10 per pack and the tax on all tobacco products (other than vapor products, moist snuff, and cigarettes) increased from 15 percent of the wholesale price to 30 percent of the wholesale price, effective Sept. 1, 2017. This bill also imposed tax of 5 cents per fluid millimeter of vapor product, and increased the tax on moist snuff from 54 cents per ounce to 92 cents per ounce, effective Jan. 1, 2018. Finally, the bill increased the fees charged for retail tobacco product licenses, effective Sept. 1, 2017.

$11.9

 

17.8

 

09/01/17 for cigarettes and 01/01/18 for vapor products

Kansas

Delayed the effective date and reduced the rate of tax on electronic cigarettes. Under previous law, a tax rate of $.0.20 per milliliter of consumable material in electronic cigarettes was imposed as of Jan. 1, 2017. This effective date was delayed to July 1, 2017 and the rate was reduced to 5 cents per milliliter.

-$1.6

-$1.5

7/1/2017

Minnesota

Repealed annual indexing on cigarette tax rates.

-$1.8

-$7.2

7/1/2017

 

Repealed annual indexing on moist snuff tax rates.

-$0.3

-$1.2

7/1/2017

 

Reduced tax rates on premium cigars.

-$1.6

-$1.7

7/1/2017

Ohio

Capped the 17 percent excise tax on premium cigars to 50 cents per cigar.

-$1.4

-$1.5

7/1/2017

Rhode Island

Increased the cigarette tax from $3.75 to $4.25 per pack.

$7.5

$7.3

8/1/2017

 

 

 

 

Appendix F: Alcohol Related Taxes

State

Description

FY 2018 Amount

(in millions)

FY 2019 Amount

(in millions)

Effective Date

Delaware

Increased the alcoholic beverage tax rates for beer, wine, and spirits containing more than 25 percent ethyl alcohol by volume. The rate for beer was increased by 1 cent per 12-ounce can; wine, 3 cents per 5-ounce serving; and spirits, 15 cents per 750 mL bottle.

$5.2

$7.2

9/1/2017

Indiana

Extended an existing state and local NBA All-Star Game tax exemption. All property owned by the National Basketball Association (NBA) and its affiliates, revenue of the NBA and its affiliates, expenditures and transactions of the NBA and its affiliates in connection with a NBA All-Star Weekend, and resulting from holding the associated events in Indiana or making preparatory advance visits to Indiana in connection with a NBA All-Star Weekend, are exempt from all state and local taxes. The exemption does not apply to salaries and wages paid to employees of the NBA and its affiliates that are ordinarily subject to Indiana state and local income taxation. If a NBA All-Star weekend is held in Indiana, the foregone revenue could be significant. However, this could be offset by a potentially significant increase in other tax revenue generated from the events. No change in taxpayer liability.

N.A.**

N.A.**

7/1/2017

Utah

Raised the liquor markup from 86 percent to 88 percent.

$1.7

$2.1

7/1/2017

 

 

 

 

 

Appendix F: Motor Fuel Excise Taxes

Jurisdiction

Description

FY 2018 Amount

(in millions)

FY 2019 Amount

(in millions)

Effective Date

California

Increased gasoline excise tax by 12 cents per gallon. Old rate was 18 cents per gallon, new rate is 30 cents per gallon.

$1,252.0

$1,866.0

11/1/2017

 

Increased diesel excise tax by 20 cents per gallon and changed from a variable rate to a fixed rate. Old rate was 16 cents per gallon, new rate is 36 cents per gallon.

$401.0

$656.0

11/1/2017

 

Increased diesel swap sales tax by 4 percent. Old rate was 0.75 percent, new rate is 5.75 percent.

$200.0

$313.0

11/1/2017

Indiana

Increased gasoline tax by 10 cents per gallon from 18 cents per gallon to 28 cents per gallon and provided for an annual adjustment for inflation.

$310.0

$336.0

7/1/2017

 

Increased special fuels tax by 10 cents per gallon from 16 cents per gallon to 26 cents per gallon and provided for an annual adjustment for inflation.

$119.0

$132.0

7/1/2017

 

Increased motor carrier surcharge tax by 10 cents per gallon from 11 cents per gallon to 21 cents per gallon and provided for an annual adjustment for inflation.

$112.0

$120.0

7/1/2017

Maryland

Provided for a refund of motor fuel taxes paid for use by a vehicle that is used only to transport the public via demand response trips.

-$0.8

-$1.1

10/1/2017

Montana

Increased fuel tax and revised highway funding laws. Increased gasoline tax by 4.5 cents per gallon from 27 cents to 31.5 cents in FY 2018 and 2019. Gasoline tax increase is scheduled to phase in up to 33 cents per gallon in 2023 and thereafter. Increased the special fuels tax by 1.5 cents per gallon from 27.75 cents to 29.25 cents per gallon in FY 2018 and 2019. Special fuels tax increase is expected to phase in up to 29.75 cents per gallon by Fee 2023 and thereafter. Proceeds from the gas tax increase will be deposited in a newly established bridge and road safety and accountability restricted account.

$28.2

$28.2

7/1/2017

New Jersey

Increased gross receipts tax on diesel fuel from 4 to 8 cents per gallon for sales made on or after July 1, 2017. This action was phased in as part of the larger reforms to the Petroleum Products Gross Receipts Tax enacted in 2016.

$39.6

$39.6

7/1/2017

Oregon

Raised the gas tax 4 cents per gallon, from 30 cents to 34 cents.

$36.0

$74.0

1/1/2018

 

Raised the weight-mile tax by 25 percent.

$35.0

$75.0

1/1/2018

South Carolina

Increased the motor fuel tax by 2 cents per gallon, from 16 cents to 18 cents per gallon. The motor fuel tax will increase by another 2 cents per gallon, from 18 cents to 20 cents per gallon on July 1, 2018.

$68.9

$85.1

7/1/2017;

7/1/2018

Tennessee

Increased the gas tax rate from 20 cents per gallon to 24 cents per gallon on July 1, 2017. The rate will increase to 25 cents per gallon on July 1, 2018 and 26 cents per gallon on July 1, 2019.

$84.7

$105.9

7/1/2017

 

Increased the diesel tax rate from 17 cents per gallon to 21 cents per gallon, effective July 1, 2017. The rate will increase to 24 cents per gallon on July 1, 2018 and to 27 cents per gallon on July 1, 2019.

$31.5

$55.1

7/1/2017

Utah

Indexed the gas tax to inflation.

N.A.

$4.2

7/1/2017

West Virginia

Increased the floor of the average wholesale price (AWP) from $2.34 per invoiced gallon to $3.04 per invoiced gallon. Also increased the variable component of the Motor Fuel Tax from $0.117 per invoiced gallon to $0.152 per invoiced gallon. Funds from these increases are dedicated to the State Road Fund.

$44.9

$49.0

7/1/2017

 

 

Appendix F: Miscellaneous Taxes

 

Jurisdiction

Description

FY 2018 Amount

(in millions)

FY 2019 Amount

(in millions)

Effective Date

Alaska

Enacted legislation to convert purchasable oil tax credits to credits against liability.

N.A.

-$10.0

7/1/2017

Colorado

Effective July 1, 2017, increased the special sales tax on recreational marijuana from 8 percent to 15 percent.

$70.0

$77.6

7/1/2017

Connecticut

Ceased issuing tax credits for certain motion pictures through insurance premium taxes.

$4.0

$4.0

10/31/2017

 

Made the three-tier credit cap on insurance premiums tax permanent. No change in taxpayer liability.

$17.4**

$16.0**

1/1/2017

 

Reduced the insurance premium tax rate from 1.75 percent to 1.5 percent.

-$11.0

-$22.4

1/1/2018

 

Repealed 10 percent Admissions Tax Exemptions for various venues.

$2.0

$2.0

12/1/2017

 

Adopted federal exemption levels for Estate and Gift Tax.

$0.0

-$15.6

1/1/2018

 

Lowered lifetime cap from $20 million to $15 million on Gift and Estate Tax.

$0.0

$0.0

1/1/2018

Delaware

Eliminated the Estate Tax, effective Dec. 31, 2017. The estimated revenue loss is -$3.75 million in FY 2019 and -$5 million in FY 2020.

N.A.

-$3.8

12/31/2017

 

Increased the real estate transfer tax received by the state by 1.0 percent, effective Aug. 1, 2017. The Real Estate Transfer Tax is imposed on real estate transactions at the time of document recordings with each County Recorder of Deeds Office.

$45.6

$72.9

8/1/17

Indiana

Extended an existing state and local NBA All-Star Game tax exemption. All property owned by the National Basketball Association (NBA) and its affiliates, revenue of the NBA and its affiliates, expenditures and transactions of the NBA and its affiliates in connection with a NBA All-Star Weekend, and resulting from holding the associated events in Indiana or making preparatory advance visits to Indiana in connection with a NBA All-Star Weekend, are exempt from all state and local taxes. The exemption does not apply to salaries and wages paid to employees of the NBA and its affiliates that are ordinarily subject to Indiana state and local income taxation. If a NBA All-Star weekend is held in Indiana, the foregone revenue could be significant. However, this could be offset by a potentially significant increase in other tax revenue generated from the events. No change in taxpayer liability.

N.A.**

N.A.**

7/1/2017

Kansas

Reduced insurance premiums taxes as a result of a change in law providing that a privilege fee on HMOs will no longer be deposited in the State General Fund.

N.A.

-$72.5

7/1/2018

Louisiana

Re-established a severance tax reduction for wells inactive for at least two years or orphaned for at least five years. Inactive receive a 50 percent tax rate reduction for 10 years, orphans a 75 percent reduction for ten years. Well participation certifications can be delayed in any fiscal years if severance tax receipts from these wells exceeds $15 million, and certifications must be made by June 30, 2023.

N.A.

N.A.

7/1/2018

 

Lowered the current Telecommunications Tax for the Deaf to from 5 cents to 4.5 cents per line per month, and expands the applicable base to include wireless services.

$3.5

$4.7

10/1/2017

Maryland

Enacted an exemption for 100 percent of the tax imposed on real property owned by a qualifying business at a qualifying manufacturing facility beginning in FY 2018. Revenue decrease estimated to equal $1 million by FY 2022.

N.A.

-$0.4

6/1/2017

 

Extended the qualified plug-in electric vehicle excise tax credit through FY 2020. Termination date is now July 1, 2020. The change also increased the annual amount of incentives available in each fiscal year, but incentive value generally decreased and eligibility requirements were altered.

-$3.0

-$3.0

7/1/2017

Minnesota

Modified the Estate Tax exclusion by increasing it to $3 million with a four-year phase-in.

-$15.2

-$19.2

1/1/2017

 

Exempted the first $100,000 on commercial/industrial market value, plus removed the inflator, on the statewide general property tax levy.

-$30.3

-$65.2

Taxes Payable in 2018

 

Enacted a School Building Bond Agricultural Credit equal to 40 percent of the tax on the property attributable to school district bonded debt levies.

$0.0

-$35.5

Taxes Payable in 2018

Mississippi

Enacted an 8 percent tax on fantasy sports operator's net Mississippi revenue.

Unable to determine fiscal impact

Unable to determinate fiscal impact

7/1/2017

Nevada

Established a 15 percent wholesale excise tax on medical marijuana sold by cultivation facilities. This replaced the 2 percent wholesale/retail excise tax on medical marijuana sold by cultivation, production, and dispensaries. This was done to align with the 15 percent wholesale excise tax on recreational marijuana sold by cultivation facilities. This tax changed was approved by ballot question 2 in 2016.

$2.8

$3.4

7/1/2017

 

Established a new 10 percent retail excise tax on recreational marijuana.

$26.5

$37.1

7/1/2017

New Hampshire

Sunset of Electricity Consumption Tax, effective Jan. 1, 2019.

N.A.

-$3.0

1/1/2019

New Jersey

Enacted second phase of a two-step phase out of the Estate Tax. Step one, which became effective on Jan. 1, 2017, increased the exclusion amount from $675 thousand to $2 million. Step two, effective Jan. 1, 2018, eliminates the estate tax for descendants dying after Jan. 1, 2018.

-$116.4

$0.0

1/1/2017

Oklahoma

Moved up sunset date for certain gross production tax exemptions.

$46.3

N.A.

7/1/2017

 

Modified gross production tax incentive rate for certain production from 1 percent to 4 percent.

$102.1

N.A.

7/1/2017

Oregon

Enacted a 0.5 percent privilege tax on vehicle dealers.

$12.0

$28.0

1/1/2018

 

Enacted a 0.1 percent payroll tax.

$38.0

$77.0

1/1/2018

 

Created a bicycle excise tax at a rate of $15 per bicycle.

$0.6

$1.5

1/1/2018

Pennsylvania

Created a new tax imposed on a new category of consumer fireworks made legal by legislation at a rate of 12 percent.

$2.8

$8.7

10/30/2017

 

Expanded gaming by allowing for internet gaming, fantasy sports, gaming at airports, and a new category of satellite casinos. Estimates here reflect combined taxes and fees expected in the General Fund.

$200.0

$100.7

10/30/2017

South Carolina

Created a road use fee on all large commercial motor vehicles. Taxed out-of-state apportioned carriers that currently do not pay property taxes. The road use fee is calculated using the same method as property taxes. The new rate is the value times assessment ratio of 9.5 percent times millage rate.

N.A.

$17.5

1/1/2019

Washington

Increased the state property tax by $0.87, from $1.83 to $2.70 per $1,000 in assessed valuation. This increase is offset partially by a cap on local school maintenance and operations (M&O) property tax levies.

$541.0

$1,073.2

1/1/2018

Wisconsin

Allowed state forestry mill tax to sunset. Reduced from 0.167 mills to 0 mills effective December 2017.

-$89.3

-$91.6

December 2017

 

 

 

 

Appendix F: Fees

 

State

Description

FY 2018 Amount

(in millions)

FY 2019 Amount

(in millions)

Effective Date

California

Suspended Fire Prevention Fee effective July 1, 2017 until Jan. 1, 2031. Fees were assessed on rural property owners living in State Responsibility Areas, where the state of California is financially responsible for the prevention and suppression of wildfires. The fees were assessed at a rate of $152.33 per habitable structure or a reduced rate of $117.33.

-$80.0

-$80.0

1/1/2017

 

Enacted a Transportation Improvement fee charge, which is in addition to the Motor Vehicle Registration fee and is based on the market value of the vehicle. The amount ranges from $25 to $175 for vehicle owners.

$726.0

$1,453.0

1/1/2018

 

Extended Cap-and-Trade Program for greenhouse gas reduction. This requires greenhouse gas emissions to be reduced by at least 40 percent below the 1990 level by 2030. No change in taxpayer liability.

N.A.**

N.A.**

1/1/2021

Colorado

Increased Water Pollution Control fees.

N.A.

$1.1

7/1/2018

Connecticut

Imposed a 25 cent fee on ridesharing services (e.g., Uber and Lyft) on each ride originating in Connecticut.

$3.0

$5.0

1/1/2018

 

Established a $35 fee for auto trade-ins payable by the dealer.

$2.6

$5.3

12/1/2017

 

Increased motor vehicle registration fee by $10 to support the new "Passport to Parks" fund.

$8.0

$16.0

1/1/2018

 

Increased the state fee for criminal history record checks from $50 to $75.

$1.7

$2.6

1/1/2018

 

Increased state fees to cover administrative costs per study and recommendation by Office of Policy and Management.

N.A.

$20.0

7/1/2018

 

Increased the municipal recording fee from $3 to $10 with the state General Fund retaining $4.

$1.2

$1.7

12/1/2017

 

Increased registration fee for broker-dealers and investment advisers by $25.

$5.2

$5.2

12/1/2017

Delaware

Implemented an across-the-board increase to the filing fees associated with the Department of Insurance filings. The increased revenue will be used to supplement the General Fund.

$4.6

$4.6

7/1/2017

Florida

Reduced the surcharge from 1.5 percent to 1.0 percent on building permits.

-$2.9

-$2.9

7/1/2017

 

Reduced or repealed building inspection fees.

-$5.6

-$6.5

7/1/2017

 

Repealed various Department of Agriculture and Consumer Services fees.

-$2.2

-$2.2

7/1/2017

 

Repealed the supplemental pesticide registration fee, which was $630 per brand biennially.

-$1.9

-$1.9

7/1/2017

Georgia

Changed the Title Ad Valorem Tax. Now taxpayers pay on total amount of payments for a leased vehicle rather than value of the leased vehicle.

-$23.3

-$55.4

1/1/2018

 

Increased the commercial driver’s license fee from $20 to $32.

No Estimate

No Estimate

7/1/2017

 

Increased various hunting and fishing licenses fees.

$11.6

$11.6

7/1/2017

 

Extended the hospital provider fee through June 30, 2020. No change in taxpayer liability.

$310.0**

$336.0**

7/1/2017

Idaho

Removed additional registration fees for gasoline hybrid vehicles. The old rate of $75 was eliminated effective July 1, 2017.

-$1.0

-$1.0

7/1/2017

 

Increased various resident and nonresident hunting license fees.

$2.0

$2.0

5/1/2017

 

Increased various resident and nonresident fishing license fees.

$3.0

$3.0

5/1/2017

Indiana

Enacted a $15 Transportation Improvement Fee that is assessed on all passenger vehicles.

$43.0

$85.0

1/1/2018

 

Increased fee for International Registration Plan by 25 percent.

$22.0

$22.0

7/1/2017

 

Enacted a supplemental registration fee for electric and hybrid vehicles. The fee is assessed at $150 for electric vehicles and $50 for hybrid vehicles.

$3.6

$8.1

1/1/2018

 

Exempted trailers from registration fees. Old fee was assessed at $8.75/trailer.

-$0.5

-$0.5

7/1/2017

 

Increased fee for automated record keeping from $5 to $20.

$6.8

$6.8

7/1/2017

Iowa

Modified unsecured appearance bond fee, fine, and surcharge. Provides that an unsecured appearance bond for State or local traffic violations, and for scheduled violations under Iowa Code sections 805.8A, 805.8B, and 805.8C, shall equal 1.5 times the minimum fine and applicable surcharge, plus court costs.

$3.0

$3.0

7/1/2017

Louisiana

Altered various license fees, fees for background checks, inspection fees, bed fees, and office of motor vehicle fees.

$1.0

$0.9

Various dates

Maine

Increased various driver exam fees. Old rates ranged between $5-$30, new rates range between $20-$70.

$0.9

$1.7

1/1/2018

Maryland

Extended the current fee of 8 cents per barrel assessed on oil transferred into the state until July 1, 2019. Beginning July 1, 2019 the fee is assessed at 5 cents per barrel. These fees are used to fund the Maryland Oil Disaster Containment, Clean-Up and Contingency Fund and Oil Contaminated Site Environmental Cleanup Fund. No change in taxpayer liability.

-$2.0**

-$2.6**

 7/1/2017

Minnesota

Lowered the Civil Court Filing Fee from $310 to $285.

-$2.1

-$2.8

7/1/2017

 

Increased the annual and daily state park entrance pass fees. Annual fees increased from $25 to $35 and daily fees increased from $5 to $7.

$2.3

$2.8

7/1/2017

 

Increased the snowmobile registration fee from $75 to $105 for a three-year pass.

$2.0

$2.0

7/1/2017

 

Increased fishing and hunting license fees. Annual fishing license fees increased from $22 to $25. Hunting license fee rates increased by about 13 percent.

$4.2

$8.0

7/1/2017

 

Reduced various construction code fees.

-$2.6

-$2.6

7/1/2017

 

Established a securities registration fee for investment advisors and increased the securities registration fee for broker dealers. Investment advisor securities registration fee is $50 and increased the fee from $50 to $65 for broker dealers.

$2.7

$2.7

7/1/2017

Montana

Enacted various fees and assessments.

$8.5

$8.4

7/1/2017

 

Clarified funding sources for the highway patrol and increased certain vehicle registration fees.

$5.2

$5.2

7/1/2017

 

Generally revised medical marijuana laws. Required providers of marijuana and marijuana-infused products to obtain a nursery license. Created a license fee for medical marijuana dispensaries in the state with revenue from the fee being deposited into the state's medical marijuana special revenue account.

$1.2

$1.2

7/1/2017

 

Revised laws related to aquatic invasive species. Established the aquatic invasive species prevention pass. In order to be eligible to fish in Montana or apply for a fishing license a person must first obtain an annual aquatic species prevention pass for a fee of $2 for residents and $15 for nonresidents. Additionally, established an invasive species fee for hydroelectric facilities and hydroelectric-dependent utilities. Revenues from these fees will be deposited in the Invasive Species account in the state special revenue fund.

$7.1

$7.1

7/1/2017

 

Established fees providing for a new driver's license or identification card to comply with the federal Real ID Act of 2005.

$3.0

$7.0

7/1/2017

 

Established the Montana Pulse Crop Committee and provided for a pulse crop assessment.

$2.9

$2.9

7/1/2017

New York

Enacted an E911 Surcharge on Prepaid Wireless Cellphones of $0.90 cents.

$7.0

$26.0

   12/1/2017

 

Enacted an assessment on the gross trip fare of Transportation Network Companies (TNC) or "rideshare companies," including Uber and Lyft. This is a 4 percent assessment on the gross trip fare of every TNC prearranged trip that originates anywhere in New York State outside New York City and terminates anywhere in New York State.

$12.0

$24.0

6/29/2017

North Dakota

Increased the assessed communications services fee for a 6-year period. New rate:  $0.50 per month is added to the existing tax. Effective Aug. 1, 2017 through Aug. 1, 2023.

$4.8

$4.8

8/1/2017

Ohio

Adjusted the licensing of pharmacists, pharmacy interns, terminal and whole distributors of dangerous drugs from an annual to biennial licensing schedule, and increased fees.

$3.8

$3.8

9/29/2017

 

Enacted a licensing fee for pharmacy technicians. The new fee structure is $55 for the initial fee and $25 for the annual renewal fee. The fiscal impact of this change is between $1-$2 million of new revenue in FY 2018 and FY 2019.

$1.5

$1.5

4/6/2018

 

Extended the sunset date for various Environmental Protection Agency (EPA) fees for two years. No change in taxpayer liability.

N.A.**

$79.6**

7/1/2018

Oklahoma

Created fee on the initial sale of tickets to certain professional sporting events. The fee schedule is $1 on tickets priced at $50 or less, and $2 on tickets priced at more than $50.

$2.7

N.A.

7/1/2017

 

The state enacted tobacco cessation fee of $1.50 per pack within the final days of the 2017 legislative session. The fee drew criticism because it did not indicate the purpose of the assessment to reduce the incidence of smoking, or for increased regulation of tobacco products. On Aug. 10, 2017, the Oklahoma Supreme Court ruled the fee was a tax. Oklahoma’s constitution requires a three-fourths majority for all tax increases, while fee increases require a simple majority. The smoking cessation legislation was passed with a simple majority, and therefore violated the Oklahoma Constitution and was struck down. The fee was expected to bring in $214 million for the state in FY 2018 and $250 million for the state in FY 2019. When the fee was ruled unconstitutional it placed Oklahoma in a budget shortfall situation and the state was called into special session to address the shortfall.

$214.9**

$257.8**

8/25/2017

Oregon

Increased registration fees from $43 per vehicle to $56 per vehicle.

$30.0

$60.0

1/1/2018

 

Increased title fees from $77 per vehicle to $93 per vehicle.

$8.0

$16.0

1/1/2018

 

Raised court filing, motion, and settlement fees by roughly 6 percent.

$1.5

$1.9

10/1/2017

Pennsylvania

Expanded gaming by allowing for internet gaming, fantasy sports, gaming at airports, and a new category of satellite casinos. Estimates here reflect combined taxes and fees expected in the General Fund.

$200.0

$100.7

10/30/2017

Rhode Island

Rescinded a fee reduction adopted in the 2016 legislative session that was set to be effective July 1, 2018.

$4.2**

$4.2**

7/1/2018

South Carolina

Increased the biennial registration fee on motor vehicles from $24 per vehicle to $40 per vehicle.

$12.7

$26.1

1/1/2018

 

Enacted an infrastructure maintenance fee at 5 percent of sales price of vehicle up to $500.

$72.7

$72.7

7/1/2017

 

Enacted an infrastructure maintenance fee of $250 per vehicle for new residents registering an out-of-state vehicle.

$20.1

$20.3

7/1/2017

 

Created a biennial registration fee for alternative fueled vehicles at a rate of $60 per vehicle.

$0.7

$1.5

1/1/2018

Tennessee

Raised motor vehicle registration fees. A $5 increase was enacted for Class (A) through (H) vehicles. A $10 increase was enacted for private and commercial passenger vehicles operating for hire. A $20 increase was enacted for trucks and truck tractors. A $100 registration fee was enacted for electric vehicles.

$34.3

$34.3

7/1/2017

 

Made various changes to the regulation of securities under the Tennessee Securities Act of 1980, including the imposition of a $50 fee on any covered security that files a change of name, and an annual renewal fee of $100 for Rule 506 of Regulation D exemption filings.

$1.1

$1.1

5/18/2017

Texas

Abolished several varying license fees relating to bingo administration.

-$3.2

-$3.2

9/1/2017

 

Decreased fee for the issuance or renewal of

license to carry a handgun from $140 to $40.

-$12.8

-$9.6

9/1/2017

West Virginia

Increased various securities fees.

$5.6

$5.6

7/7/2017

 

Increased various DMV fees, including but not limited to license renewal and registration fees. Increases became effective July 1, 2017. Revenues are dedicated to State Road Fund. The annual increase from this revenue change is roughly $40.4 million.

$40.4

$40.4

7/1/2017

Wisconsin

Increased fees for electric vehicles. Increased hybrid-electric vehicle fee from $0 to $75. Increased electric vehicle fee from $0 to $100.

$2.6

$5.8

1/1/2018

 

Increased maximum state parks and forests daily vehicle admission fee and daily camping fees. The maximum daily vehicle fee was increased from $11 to $16 for state residents and from $15 to $20 for nonresidents. The maximum daily camping fee was increased from $20 to $30 for state residents, and from $25 to $35 for nonresidents. These fees are subject to agency determination. The state park electrified campsite fees at select high-demand parks increased from $10 to $15.

$1.1

$2.4

1/1/2018

 

Replaced pesticide registration graduated fee/surcharge structure with flat fees and surcharges of $530 per product.

-$1.7

-$1.8

1/1/2018

Wyoming

Adjusted numerous motor vehicle registration fees.

$20.0

$20.0

7/1/2017

 

Adjusted numerous driver's license fees.

$2.6

$2.6

7/1/2017

 

Increased the court automation fee from $10 to $25.

$2.1

$2.1

7/1/2017

 

Adjusted hunting, fishing, application, watercraft, and conservation fees.

$2.5

$4.9

1/1/2018

Appendix F: Other Non-Tax Revenue

State

Description

FY 2018 Amount

(in millions)

FY 2019 Amount

(in millions)

Effective Date

Connecticut

Authorized Department of Revenue Services (DRS) "Fresh Start" Tax Collection Initiative. The initiative consists of the following activities: 1) Extensive targeted taxpayer outreach and a limited general awareness promotional campaign; 2) Transfer pricing recovery; 3) Identification of non-filers; 4) Compliance sweeps targeting unregistered and delinquent business taxpayers; 5) Sales and use tax desk audits driven by more frequent permit renewal; 6) Expanded data matching and financial institutions records matching; and 7) Tax resolution and payment under structured offers of compromise.

$60.0

$25.0

10/31/2017

Florida

Accelerated corporate income tax payments. Made end-of-fiscal year payments due Friday before June 30, which falls on a weekend, rather than due the Monday after.

$83.9

N.A.

6/29/2018

Indiana

Changed the effective date from July 1, 2017, to July 1, 2018, of a provision that will require a travel facilitator to collect sales tax and make the rental of rooms in a house, condominium, or apartment for less than 30 days subject to sales tax.

Indeterminable, but potentially significant decrease

$0.0

4/28/2017

Kansas

Decelerated the sales tax remittance schedule for a number of retailers.

-$2.7

$0.0

1/1/2018

Massachusetts

Enacted regulations for accelerated third party sales tax remittance. The previous collection schedule was at the end of month, the new collection schedule is to be determined by the department of revenue.

$125.0

-$125.0

1/1/2018

Oklahoma

Moved up sunset date to July 1, 2017 for credit for power generated by zero-emission facilities. No impact on revenue until 2027.

N.A.

N.A.

7/1/2017

 

Modified filing date for certain franchise tax remitters. Moved the due date from July 1, 2018 to May 1, 2017. This change has a one-time revenue impact.

$12.7

N.A.

11/1/2017

 

Enacted a noncompliant sales tax permit holder collection initiative. The expected fiscal impact will raise $12.1 million revenue for income tax and $4.9 million for mixed beverage tax.

$17.0

N.A.

7/1/2017

 

Established a Voluntary Disclosure Initiative, similar to amnesty program. A taxpayer shall be entitled to a waiver of penalty, interest, or other collection fees due on eligible taxes if a taxpayer files delinquent tax returns and pays the taxes due during the disclosure initiative period.

$14.6

N.A.

7/1/2017

Pennsylvania

Shortened the period for petitions in the appeals process from 90 to 60 days.

$10.0

$10.0

10/30/2017

Rhode Island

Established a tax amnesty program.

$12.5

$0.0

12/1/2017

Texas

Increased Tax Compliance.

$47.8

N.A.

9/1/2017

 

Enacted a tax amnesty program.

$23.0

$23.0

9/1/2017

 

Accelerated the sale of unclaimed securities.

$250.0

$250.0

9/1/2017

Vermont

General Assembly directed Tax Department to use new and existing strategies to close the gap between taxes paid and taxes due to increase collections in State fiscal year 2018.

$3.2

$3.2

6/1/2017

Virginia

Authorized a tax amnesty program in FY 2018.

$89.5

N.A.

7/1/2017

 

Deferred the phase-out of accelerated sales tax. Retained the current $2.5 million taxable sales threshold for remittance of the June accelerated sales tax in FY 2017 and increased the threshold to $4.0 million in FY 2018.  Previous budget assumed the threshold would increase to $10.0 million in June 2017 and to $25.0 million in June 2018 (retains $35.1 million in FY 2017 and $12.8 million in FY 2018).

$12.8**

N.A.**

June 2017

Wisconsin

Provided 38 project positions to the Department of Revenue for four years to increase auditing activities and improve tax collections.

$24.0

$32.0

10/1/2018

 

Expanded reporting requirements for information returns and modified due dates for filing those returns for income/franchise tax filers.

$3.0

$3.0

TY 2017