2020 State Tax Actions

5/6/2021

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Preface and Acknowledgements

"State Tax Actions 2020" presents information about the tax and revenue changes enacted by state legislatures during the 2020 calendar year. It also contains the results of tax measures that were voted on during 2020 elections and special sessions. In addition to aggregate state tax information, the report contains detailed information on 46 states. The reported changes generally take effect in fiscal year 2020. 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 2020 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.

Highlights

The year 2020 will go down in history as the year of the coronavirus pandemic. No state was spared its effects and the disruption it caused to state legislative sessions and economies were reflected in state tax actions. Many states took few or no significant tax actions in 2020, prioritizing public health responses and waiting to develop a better sense of how their budgets and tax collections had been impacted. This report includes tax actions taken during regular and special legislative sessions in 2020, as well as actions approved by voters, that result in a revenue impact of $1 million or more. Forty-six states and the District of Columbia provided information, which was obtained through a survey of the National Association of Legislative Fiscal Offices. NCSL research filled in a few notable changes not mentioned in surveys. NCSL did not receive survey responses from Hawaii, Maine, Oklahoma, and South Dakota. Highlights in 2020 state tax actions include:

  • Collective actions taken by the 46 states and the District of Columbia resulted in a net tax increase of about $9.6 billion, representing a 0.9% increase compared to the prior year’s tax collections. Fig. 1 shows the net tax changes by year from 1995 to 2020.
  • Of the 46 states and District of Columbia reporting, eight—Alabama, California, Massachusetts, New Hampshire, New Jersey, New York, Tennessee, and Virginia—increased taxes by more than 1%. Three states—Alaska, Indiana, and Wisconsin—reported a net decrease of more than 1%.
  • Corporate income taxes produced the largest increase, totaling $4.45 billion. Tax changes in California and New Jersey primarily fueled this number. All tax categories saw overall increases, except for alcohol taxes, which saw no substantial activity.
  • In addition to tax changes, states approved nontax revenue changes, including fee increases or decreases, revenue accelerations or decelerations, and tax compliance initiatives for a net increase of $18.8 million.

net state tax changes chart

Of all the reporting states, Tennessee experienced the largest net tax increase, 5.7%, over the prior year’s tax collections. The legislature enacted a couple health care-related tax increases and applied sales tax collection requirements to marketplace facilitators. The actions combined totaled an estimated $846.4 million tax increase for FY 2021. Alaska reported the largest net decrease in revenues. The state conformed to federal business tax relief provisions that reduced revenues by 5.6% of total state tax collections in 2019. Corporate income experienced the largest increase this year, followed by personal income and health care taxes. All tax categories increased, apart from alcohol taxes, which saw no significant activity.

net state tax changes by type tax chart

Tax Trends of 2020

net tax and revenue increases chartFiling and Payment Deadline Extensions

Perhaps counterintuitively, the most pressing tax issue cited by states was generally not anticipated to affect revenues. In response to the coronavirus, the federal government extended filing and payment deadlines for personal income taxes three months, from April 15 to July 15. States were essentially obligated to do the same and all of them extended filing deadlines for personal income taxes, largely mirroring the federal deadlines, and some provided extensions for other types of taxes as well. In general, these were not projected to have a revenue impact, but in at least 19 states the extension pushed the receipt of revenue from FY 2020 into FY 2021, creating noteworthy budgeting challenges.

CARES Act Conformity

Tax actions taken by the U.S. Congress occupied a good deal of state attention. The Coronavirus Aid, Relief, and Economic Security (CARES) Act included a number of changes to the tax code to provide relief to businesses. Two of the more significant provisions included expanded business net operating loss allowances and an increased deduction for business interest expenses. Because most states tie their tax codes to the federal code, these changes would reduce or increase state personal and corporate income tax revenues, depending on whether they decided to conform to or decouple from them. Alaska’s conformity to net operating losses resulted in a relatively significant reduction in corporate income tax revenues, while Minnesota and New York raised revenue by decoupling from the increased deduction for interest expenses.

Other Business Tax Changes and Personal Income Tax Adjustments

Many of the enactments with the largest revenue impact occurred in the corporate and personal income tax categories. California suspended net operating loss provisions for corporate taxpayers over a certain income level and limited the use of many credits. New Jersey extended a temporary business tax surcharge. Iowa and New Hampshire decoupled from global intangible low-taxed income (GILTI) provisions that were included in the 2017 Tax Cuts and Jobs Act (TCJA). Indiana’s corporate income and financial institutions tax rates were also reduced as part of legislation enacted in 2014.

On the personal income tax side of things, New Jersey increased the tax rate on income between $1 and $5 million. At the ballot box in November, voters in Colorado voted to reduce the flat personal and corporate income tax rate from 4.63% to 4.55%, while Arizonians approve a 3.5% surcharge on incomes over $250,000. As part of priorly enacted law, New Mexico added a new top personal income tax bracket starting at $210,000 while Wisconsin saw a personal income tax rate cut that was triggered by new sales tax revenues from remote sellers.

More Marketplace Facilitator Enactments

Marketplace facilitator collection laws have been an ongoing conversation in states. These provisions aim to transfer collection responsibilities from third-party sellers to marketplace facilitators. Marketplace facilitators contract with third-party sellers to sell goods and services through the marketplace’s platform. By the end of 2019, most states had adopted some form of these requirements, which proved extremely valuable when many physical retail establishments were forced to close their doors for public health reasons. Georgia, Mississippi, Tennessee, and Wisconsin joined them in 2020.

net sales and use tax changes chart

Tobacco Taxes

The number of states that tax electronic cigarettes or other vaping products has been steadily increasing. At the end of 2019, 21 states and the District of Columbia had enacted taxes on these products. In 2020, another six states joined them: Colorado, Georgia, Kentucky, Oregon, Virginia, and Wyoming.

five-year snapshot: net health care changes chartStates have taken a mixed approach on how they tax e-cigarettes and vaping products. Some levy a tax based on volume, while others apply a percentage on the wholesale price. The percentage rates vary widely. Some states levy a tax over 90% while Wyoming, for example, adopted a 15% rate. Three states: Colorado, Oregon, and Virginia, also increased tax rates on cigarettes in 2020.

Health Care Taxes

Several states increased taxes on health care providers and other entities in the industry. Alabama’s lone significant tax action was to increase the privilege assessment on nursing facilities, which was estimated to raise $112.1 in FY 2021. Tennessee raised $747.9 million by increasing assessments on hospitals, ground ambulance providers, and nursing homes. California modified the managed care organization enrollment tax to raise $394 million. New Jersey and West Virginia raised taxes on health maintenance organizations

Not Trending, but Significant Changes Worth Noting

  • Expiration of the Internet Tax Freedom Act’s Grandfather Clause: Congress prohibited the states from taxing internet access as part of the internet tax freedom act in 1998 but allowed a handful of states with existing taxes on internet access to keep them in place temporarily. The expiration date for these taxes had been pushed back several times, but it finally arrived on June 30, 2020. The six states (Hawaii, New Mexico, Ohio, South Dakota, Texas, and Wisconsin) still levying this tax were anticipating its expiration.
  • South Carolina, Virginia, and Washington D.C. increased motor fuel tax rates. North Carolina took action to prevent a drop in its gas tax rate, which is indexed to energy prices and would have fallen during the glut in spring 2020 oil prices. 

Other Revenue Trends

The "State Tax Actions 2020" report separates changes based on whether they constitute a tax change, fee change or other nontax change, such as tax amnesty programs. Other revenue changes encompass both fee and nontax changes. Reported fee changes were relatively sparse in 2020. Georgia imposed a new fee on transportation services after exempting them from sales tax. Virginia reduced the annual motor vehicle registration fee and added a highway use fee for electric vehicles. Massachusetts approved an Accelerated Sales Tax for businesses with $150K or more in state tax liability in prior fiscal year. Tax changes in 2020 as a percentage of 2019 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.

Appendix A

Appendix A | 2020 Tax Changes as a Percentage of 2019 Tax Collections (in Millions of Dollars)

Jurisdiction

Net Tax Changes

Percent of 2019 Tax Collections

Alabama

$112.1

1.0%

Alaska

-$100.0

-5.6%

Arizona

$827.0

4.6%

Arkansas

$0.0

0.0%

California

$4,722.0

2.5%

Colorado

-$17.8

-0.1%

Connecticut

-$73.8

-0.4%

Delaware

$0.0

0.0%

District of Columbia

$46.6

0.5%

Florida

-$47.4

-0.1%

Georgia

-$150.0

-0.6%

Hawaii

Did Not Report

DNR

Idaho

-$8.5

-0.2%

Illinois

$0.0

0.0%

Indiana

-$227.2

-1.1%

Iowa

-$51.7

-0.5%

Kansas

$0.0

0.0%

Kentucky

$6.5

0.1%

Louisiana

-$20.1

-0.2%

Maine

DNR

DNR

Maryland

$1.8

0.0%

Massachusetts

$331.0

1.0%

Michigan

-$2.0

0.0%

Minnesota

-$90.0

-0.3%

Mississippi

$25.0

0.3%

Missouri

-$38.2

-0.3%

Montana

$0.0

0.0%

Nebraska

$0.0

0.0%

Nevada

$0.0

0.0%

New Hampshire

$51.2

1.7%

New Jersey

$1,214.5

3.1%

New Mexico

$11.0

0.1%

New York

$1,609.0

1.8%

North Carolina

$99.2

0.3%

North Dakota

$0.0

0.0%

Ohio

-$4.6

0.0%

Oklahoma

DNR

DNR

Oregon

$109.4

0.8%

Pennsylvania

$0.0

0.0%

Rhode Island

$0.0

0.0%

South Carolina

$79.7

0.7%

South Dakota

DNR

DNR

Tennessee

$846.4

5.7%

Texas

$0.0

0.0%

Utah

-$3.8

0.0%

Vermont

$0.0

0.0%

Virginia

$641.0

2.4%

Washington

$0.0

0.0%

West Virginia

$0.0

0.0%

Wisconsin

-$282.4

-1.4%

Wyoming

$5.2

0.2%

Total

$9,621.1

0.9%

Source: National Conference of State Legislatures’ survey of legislative fiscal offices, 2020; U.S. Census Bureau, 2020

Appendix B

Appendix B | 2020 Tax Changes by Type of Tax (in Millions of Dollars)

Jurisdiction

Personal Income

Corporate Income

Sales & Use

Health Care

Tobacco

Alcohol

Motor Fuel

Other

Total

Alabama

$0.0

$0.0

$0.0

$112.1

$0.0

$0.0

$0.0

$0.0

$112.1

Alaska

$0.0

-$100.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$100.0

Arizona

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Arkansas

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

California

-$65.0

$4,381.0

$12.0

$394.0

$0.0

$0.0

$0.0

$0.0

$4,722.0

Colorado

$14.3

$79.8

$3.7

$0.0

$87.4

$0.0

$0.0

$0.0

$97.8

Connecticut

-$16.5

-$28.2

$0.0

$0.0

$0.0

$0.0

$0.0

-$29.1

-$73.8

Delaware

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

District of Columbia

$2.0

$36.0

$0.0

$0.0

$0.0

$0.0

$5.6

$3.0

$46.6

Florida

$0.0

$0.0

-$47.4

$0.0

$0.0

$0.0

$0.0

$0.0

-$47.4

Georgia

-$199.0

-$7.0

$53.0

$0.0

$3.0

$0.0

$0.0

$0.0

-$150.0

Hawaii

DNR

DNR

DNR

DNR

DNR

DNR

DNR

DNR

$0.0

Idaho

-$8.5

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$8.5

Illinois

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Indiana

$0.0

-$195.7

$0.0

$0.0

$0.0

$0.0

$0.0

-$31.5

-$227.2

Iowa

-$1.0

-$33.6

-$1.8

$0.0

$0.0

$0.0

-$15.3

$0.0

-$51.7

Kansas

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Kentucky

$0.0

$0.0

-$0.1

$0.0

$7.9

$0.0

$0.0

-$1.3

$6.5

Louisiana

$0.0

-$7.0

-$1.9

$0.0

$0.0

$0.0

$0.0

-$11.2

-$20.1

Maine

DNR

DNR

DNR

DNR

DNR

DNR

DNR

DNR

$0.0

Maryland

$0.0

$0.0

$1.8

$0.0

$0.0

$0.0

$0.0

$0.0

$1.8

Massachusetts

$64.0

$0.0

$267.0

$0.0

$0.0

$0.0

$0.0

$0.0

$331.0

Michigan

$0.0

$0.0

-$2.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$2.0

Minnesota

-$63.0

-$27.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$90.0

Mississippi

$0.0

$0.0

$25.0

$0.0

$0.0

$0.0

$0.0

$0.0

$25.0

Missouri

-$38.2

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Montana

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Nebraska

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Nevada

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

New Hampshire

$0.0

$41.2

$0.0

$0.0

$0.0

$0.0

$0.0

$10.0

$51.2

New Jersey

$427.0

$333.0

$0.0

$103.0

$0.0

$0.0

$351.5

$0.0

$1,214.5

New Mexico

$15.0

$0.0

-$4.0

$0.0

$0.0

$0.0

$0.0

$0.0

$11.0

New York

$1,600

$0.0

$0.0

$0.0

$10.0

$0.0

$0.0

-$1.0

$1,609.0

North Carolina

-$36.0

$0.0

$0.0

$115.0

$0.0

$0.0

$20.2

$0.0

$99.2

North Dakota

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Ohio

-$1.0

$0.0

-$3.6

$0.0

$0.0

$0.0

$0.0

$0.0

-$4.6

Oklahoma

DNR

DNR

DNR

DNR

DNR

DNR

DNR

DNR

$0.0

Oregon

$0.0

$0.0

$0.0

$0.0

$111.1

$0.0

$0.0

-$1.7

-$1.7

Pennsylvania

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Rhode Island

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

South Carolina

-$2.9

$0.0

$0.0

$0.0

$0.0

$0.0

$82.6

$0.0

$79.7

South Dakota

DNR

DNR

DNR

DNR

DNR

DNR

DNR

DNR

$0.0

Tennessee

$0.0

$0.0

$98.5

$747.9

$0.0

$0.0

$0.0

$0.0

$846.4

Texas

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Utah

$0.0

-$3.8

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

-$3.8

Vermont

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Virginia

$10.3

$0.0

$96.3

$0.0

$123.1

$0.0

$247.8

$163.5

$641.0

Washington

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

West Virginia

-$3.1

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$15.0

$11.9

Wisconsin

-$179.8

-$13.6

-$98.9

$0.0

$0.0

$0.0

$9.9

$0.0

-$282.4

Wyoming

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$5.2

$5.2

Total

$2,145.7

$4,455.1

$397.6

$1,472.0

$342.5

$0.0

$702.3

$120.9

$9,621.1

Sources: National Conference of State Legislatures’ survey of legislative fiscal offices, NCSL Research

Appendix C

Appendix C | 2020 Net Revenue Changes (in Millions of Dollars)

Jurisdiction

Taxes

Fees

Other

Total Revenue

Alabama

$112.1

$0.0

$0.0

$112.1

Alaska

-$100.0

$0.0

$0.0

-$100.0

Arizona

$187.0

$0.0

$0.0

$187.0

Arkansas

$0.0

$0.0

$0.0

$0.0

California

$4,722.0

$0.0

$0.0

$4,722.0

Colorado

-$17.8

$10.0

$0.0

-$7.8

Connecticut

-$73.8

$0.0

$0.0

-$73.8

Delaware

$0.0

$0.0

$0.0

$0.0

District of Columbia

$46.6

$2.3

$0.0

$48.9

Florida

-$47.4

-$1.5

$0.0

-$48.9

Georgia

-$150.0

$35.0

$0.0

-$115.0

Hawaii

DNR

DNR

DNR

DNR

Idaho

-$8.5

$0.0

$0.0

-$8.5

Illinois

$0.0

$0.0

$0.0

$0.0

Indiana

-$227.2

$0.0

$0.0

-$227.2

Iowa

-$51.7

$8.4

$0.0

-$43.3

Kansas

$0.0

$0.0

$0.0

$0.0

Kentucky

$6.5

$0.0

$0.0

$6.5

Louisiana

-$20.1

$0.0

$0.0

-$20.1

Maine

DNR

DNR

DNR

DNR

Maryland

$1.8

$0.0

$0.0

$1.8

Massachusetts

$331.0

$0.0

$0.0

$331.0

Michigan

-$2.0

$0.0

$0.0

-$2.0

Minnesota

-$90.0

$0.0

$0.0

-$90.0

Mississippi

$25.0

$0.0

$0.0

$25.0

Missouri

-$38.2

$0.0

$0.0

-$38.2

Montana

$0.0

$0.0

$0.0

$0.0

Nebraska

$0.0

$0.0

$0.0

$0.0

Nevada

$0.0

$0.0

$0.0

$0.0

New Hampshire

$51.2

$0.0

$0.0

$51.2

New Jersey

$1,214.5

$0.0

$0.0

$1,214.5

New Mexico

$11.0

$0.0

$0.0

$11.0

New York

$1,609.0

$0.0

$0.0

$1,609.0

North Carolina

$99.2

$0.0

$0.0

$99.2

North Dakota

$0.0

$0.0

$0.0

$0.0

Ohio

-$4.6

$0.0

$0.0

-$4.6

Oklahoma

DNR

DNR

DNR

DNR

Oregon

$109.4

$0.0

$0.0

$109.4

Pennsylvania

$0.0

$0.0

$0.0

$0.0

Rhode Island

$0.0

$0.0

$0.0

$0.0

South Carolina

$79.7

$0.0

$0.0

$79.7

South Dakota

DNR

DNR

DNR

DNR

Tennessee

$846.4

$0.0

$0.0

$846.4

Texas

$0.0

$0.0

$0.0

$0.0

Utah

-$3.8

$0.0

$0.0

-$3.8

Vermont

$0.0

$0.0

$0.0

$0.0

Virginia

$641.0

-$36.9

$0.0

$604.1

Washington

$0.0

$0.0

$0.0

$0.0

West Virginia

$0.0

$0.0

$0.0

$0.0

Wisconsin

-$282.4

$0.0

$0.0

-$282.4

Wyoming

$5.2

$1.5

$0.0

$6.7

Total

$9,621.1

$18.8

$0.0

$9,639.9

Source: National Conference of State Legislatures’ survey of legislative fiscal offices, 2020

Appendix D

Appendix D | Property Tax Actions Affecting Local Revenues in 2020

While the changes in this section are not abnormal when compared to recent State Tax Actions reports, several states noted the prominence of property tax issues during this past legislative session. During long economic expansions when housing values generally increase or are at their highest value, property tax relief tends to be a significant topic. Below are property tax measures that were enacted affecting local revenues. 

Arkansas increased the homestead property tax credit. This tax change was part of a larger reform measure.

Colorado voters approved Amendment B, which repealed the 29% assessment rate in the constitution for most nonresidential property, the calculation of the target percentage, and the requirement that the General Assembly adjust the residential assessment rate to maintain the target percentage.

Oregon removed city property from special district assessments.

Washington enacted several property tax measures in 2020. The state extended the multi-family property tax exemption for properties currently receiving the exemption until 12/31/21. It removed the expiration and expanded eligibility for a property tax exemption for tribal owned property used for economic development; expanded and extended a property tax exemption for nonprofits providing housing to very low-income households; authorized the extension of the special property valuation of historic properties in certain cities; and exempt the value of constructing accessory dwelling units from property taxes for three years.

West Virginia permitted counties to retain the property transfer tax (phased in over a 10-year period).

Appendix E

Appendix E | 2020 Tax and Revenue Changes by State

This appendix shows the tax and revenue changes that took place by states in 2020 regular and special legislative sessions that will affect state revenues in FY 2020 and FY 2021. The appendix also includes any tax measures approved by voters in the 2020 election. Changes effective in a certain fiscal year as a result of legislation passed in an earlier year are also reflected in the totals. Tax changes by tax category appear in Appendix F.

Tax Revenue reflects the revenue effect of tax actions for that fiscal year.

Revenue Total reflects the total amount of state revenue change. It combines revenue derived from tax actions with other revenue changes, such as fee increases, accelerations and other one-time changes. 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

B&O: Business and Occupation

CARES: Coronavirus Aid, Relief, and Economic Security Act

CPI: Consumer Price Index

CIT: Corporate Income Tax

EITC: Earned Income Tax Credit

FDII: Foreign-Derived Intangible Income

GILTI: Global Intangible Low-Taxed Income

GRF: General Revenue Fund

HMO: Health Maintenance Organization

 

IRC: Internal Revenue Code

LLC: Limited Liability Corporation

LLP: Limited Liability Partnership

NOL: Net Operating Loss

PIT: Personal Income Tax

R&D: Research and Development

SSTP: Streamlined Sales Tax Project

TCJA: 2017 Tax Cuts and Jobs Act

TY: Tax Year

Appendix E | 2020 Tax and Revenue Changes by State

Jurisdiction

Description

Tax Category

Effective Date

FY 2021

FY 2022

Alabama

Increased the privilege assessment on nursing facilities.

Health Care

9/1/2020

$112.1

unknown

 

Tax Revenue=

   

$112.1

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$112.1

 

Alaska

Automatically conformed to net operating loss provisions included in the federal CARES Act.

Corporate Income

3/27/2020

-$100.0

-$100.0

 

Tax Revenue=

   

-$100.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

-$100.0

 

Arizona

Approved ballot measure Proposition 208 established a 3.5% income tax surcharge for single taxpayers on taxable income over $250,000. ($500,000 for joint filers.)*

Personal Income

1/1/2021

827.0

 
 

Tax Revenue=

   

$827.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$827.0

 

Arkansas

No significant tax changes. Filing deadline pushed into FY 2021.

       
 

Tax Revenue=

   

$0.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$0.0

 

California

Suspended net operating loss deductions for taxpayers with net income above $1 million.

Corporate Income

1/1/2020

$1,820.0

$1,300.0

 

Limited the use of most business tax credits to a total of $5 million per year.

Corporate Income

1/1/2020

$2,000.0

$1,540.0

 

Interaction between the limitation on net operating loss deductions and tax credits will result in an additional revenue increase.

Corporate Income

1/1/2020

$611.0

$454.0

 

Established first-year exemption from minimum tax for LLCs and partnerships.

Corporate Income

1/1/2021

-$50.0

-$100.0

 

Required used car dealers to remit sales tax along with vehicle registration fees.

Sales and Use

1/1/2020

$12.0

$24.0

 

Extended the sales tax exemption for diapers and menstrual products.

Sales and Use

1/1/2022

$0.0

-$23.0

 

Expanded eligibility for state EITC to filers with an Individual Tax Identification Number (ITIN).

Personal Income

1/1/2020

-$65.0

-$65.0

 

Reauthorize and modify managed care organization (MCO) enrollment tax.

Health Care

1/1/2020

$394.0

$729.0

 

Tax Revenue=

   

$4,722.0

$3,859.0

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$4,722.0

$3,859.0

Colorado

Decoupled from business relief provisions in the federal CARES Act, including deductions for NOLs, excess business losses, and business interest income.

Corporate Income

tax year 2020

$79.8

$23.1

 

Reversed federal 199A deduction for some high-income taxpayers.

Personal Income

tax year 2021

$19.5

$43.2

 

Extended and expanded the state earned income tax credit

Personal Income

tax year 2021

-$5.2

-$34.2

 

Narrowed the state sales and use tax exemption for long-term lodging, allowing the exemption for long-term stays by natural persons only.

Sales and Use

1/1/2021

$3.7

$7.4

 

Reduced the state income tax rate from 4.63% to 4.55%*

Personal Income

1/1/2020

-203.0

-154.0

 

Increased state taxes on cigarettes and other tobacco products and created a tax on nicotine products.*

Tobacco

1/1/2021

87.4

117.1

 

Tax Revenue=

   

$97.8

$39.5

 

Increased civil penalties for air and water quality violations.

Fee

1/1/2021

$0.5

$1.5

 

Imposed a fee assessed per truckload of fuel products to fund PFAS and transportation hazmat management

Fee

9/1/2020

$6.3

$7.5

 

911 Emergency Telephone Surcharge

Fee

1/1/2021

$3.3

$6.6

 

Fee per ton of air pollutants

Fee

1/1/2021

$1.6

$3.4

 

Limitation on debt collection actions through 11/1/20

Fee

7/1/2020

-$1.7

$0.0

 

Non-Tax Revenue=

   

$10.0

$19.0

 

Revenue Total=

   

$107.8

$58.5

Connecticut

Temporary Restrictions on the Property Tax Credit expired.

Personal Income

12/31/2020

$0.0

-$53.0

 

Exempted certain pension and annuity income.

Personal Income

1/1/2019

-$16.5

-$16.4

 

Increased teachers' pension exemption from 25% to 50%.

Personal Income

1/1/2021

$0.0

-$8.0

 

Eliminated the Capital Stock Tax method (phased out).

Corporate Income

1/1/2021

-$5.7

-$9.5

 

Sunset the (now) 10% surcharge, which was established in 2012, at 20%.

Corporate Income

12/31/2020

-$22.5

-$15.0

 

Phased reduction or elimination of the state Admissions & Dues tax for various venues.

Miscellaneous

7/1/2019

-$0.8

$0.0

 

10-cents surcharge on plastic bags expires as plastic bags are banned effective July 1, 2021.

Miscellaneous

6/30/2021

$0.0

-$7.0

 

Adopted Federal Exemption Level for Inheritance and Estate Tax (phased in).

Miscellaneous

1/1/2018

-$28.3

-$13.2

 

Tax Revenue=

   

-$73.8

-$122.1

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

-$73.8

-$244.2

Delaware

No significant tax changes

       
 

Tax Revenue=

   

$0.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$0.0

 

District of Columbia

Repealed a number of provisions of the District’s tax incentives for Qualified High-Technology Companies.

Corporate Income

10/1/2020

$27.5

$34.9

 

Delayed implementation of combined reporting laws that would allow publicly traded companies a future deduction if the implementation of combined reporting resulted in an increase in a combined group’s net deferred tax liability.

Corporate Income

1/1/2021

$7.4

$7.4

 

Taxable income includes gains from a sale or other disposition of assets, even if such sale results in the termination of an unincorporated business.

Corporate Income

1/1/2021

$1.1

$3.3

 

Establishes a new local transportation surcharge on motor vehicle fuels of $0.053 in FY21 and $0.103 in FY22, to be increased by CPI annually and dedicates the revenue to local transportation projects.  The base motor vehicle fuel tax rate will remain at $.235 and revenue from that tax will continue to be dedicated to the local Highway Trust Fund.

Motor Fuel

10/1/2020

$5.6

$11.9

 

Decoupled the federal capital gains tax deferral for Qualified Opportunity Fund investments that are not located in the District or are not expected to meet certain criteria.

Personal Income

10/1/2020

$2.0

$6.2

 

Authorized bars and restaurants to offer electronic games of skill and taxed gross machine revenue at 10%.

Miscellaneous

10/1/2020

$1.2

$3.3

 

Reduced the amount of assets that can be excluded from District taxes when transferred from a deceased person’s estate from $5.682 million to $4 million.

Miscellaneous

1/1/2021

$1.8

$2.4

 

Tax Revenue=

   

$46.6

$69.4

 

Increased fee that private waste haulers are charged to dump their solid waste loads at District-operated waste transfer stations.

 

10/1/2020

$1.2

$1.2

 

Authorized the Department of Consumer and Regulatory Affairs (DCRA) to require all third-party inspections to be arranged through an exclusive DCRA online platform and authorized the agency to charge a fee for using the platform.

 

1/1/2021

$1.1

$1.7

 

Non-Tax Revenue=

   

$2.3

$2.9

 

Revenue Total=

   

$48.9

$72.3

Florida

Back-to-School Sales Tax Holiday

Sales and Use

4/8/2020

-$41.8

 
 

Disaster Preparedness Sales Tax Holiday

Sales and Use

4/8/2020

-$5.6

 
 

Tax Revenue=

   

-$47.4

 
 

Reduction/elimination of occupational license fees.

Fee

7/1/2020

-$1.5

 
 

Non-Tax Revenue=

   

-$1.5

 
 

Revenue Total=

   

-$48.9

 

Georgia

Exempted transportation services from sales tax.

Sales and Use

8/5/2020

-$25.0

-$30.0

 

Enacted Marketplace Facilitator sales tax collection requirements.

Sales and Use

4/1/2020

$78.0

$81.0

 

Implemented a tax on vaping.

Tobacco

1/1/2021

$3.0

$7.0

 

PPE Manufacturer Tax Credit

Corporate Income

6/30/2020

-$7.0

-$7.0

 

IRC Update

Personal and Corporate Income

6/30/2020

-$199.0

-$1.0

 

Tax Revenue=

   

-$150.0

$50.0

 

Implemented a transportation services fee.

 

8/5/2020

$35.0

$36.0

 

Non-Tax Revenue=

   

$35.0

$36.0

 

Revenue Total=

   

-$115.0

$86.0

Hawaii

No survey received. Conformity measure was enacted. (SB 2920)

       

Idaho

Federal Tax Conformity

Personal Income

1/1/2019

-$6.6

-$4.3

 

Adopted First Time Homebuyers Tax Credit

Personal Income

1/1/2020

-$1.9

-$1.9

 

Tax Revenue=

   

-$8.5

-$6.2

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

-$8.5

-$6.2

Illinois

No significant tax changes

       
 

Tax Revenue=

       
 

Non-Tax Revenue=

       
 

Revenue Total=

       

Indiana

Reduced the corporate income tax rate as part of a multi-year phased-in reduction enacted in 2014. The rate was lowered from 6.5% in FY 2016 to 4.9% in FY 2022.

Corporate Income

7/1/2020

-$195.7

-$216.6

 

Reduced the Financial Institution Tax as part of a multi-year phased-in reduction enacted in 2014. The FIT rate was lowered from 6.5% in CY 2018 to 4.9% in CY 2023 and thereafter.  

Miscellaneous

1/1/2020

-$31.5

-$38.3

 

Modified SUTA (State Unemployment Tax Act) taxes. The legislation freezes the rate schedule at the 2020 rate for calendar years 2021-2025. After 2025, the rate schedule will adjust according to the fund ratio. Under the prior law the rate schedule, frozen at schedule E from 2011 through 2020, would vary beginning in 2021 depending on the fund ratio of the unemployment trust fund. The fund ratio is equal to the balance in the Unemployment Insurance Trust Fund divided by covered payroll.  The bill intended to prevent a shift to a lower rate schedule. The reduced tax shift was anticipated to occur given the continued low unemployment levels leading up to the beginning of 2020. This would have reduced tax revenue into the unemployment trust fund over time. Given the sudden high unemployment rates related to the COVID-19 pandemic, the law change now may prevent a shift to a rate schedule with higher tax rates due to a reduced fund ratio.

Miscellaneous

1/1/2021

indeterminable

indeterminable

 

Tax Revenue=

   

-$227.2

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

-$227.2

 

Iowa

Net operating loss change.

Personal Income

Tax Year 2020

-$1.0

-$1.0

 

Business Interest and GILTI

Corporate Income

Tax Year 2019

-$20.0

-$9.2

 

Broadband Grants

Corporate Income

Tax Year 2019

-$2.3

-$1.5

 

Paycheck Protection Program

Corporate Income

Tax Year 2019

-$5.8

$0.0

 

Entity-level income tax adopted

Corporate Income

Tax Year 2020

-$4.2

-$4.2

 

Small business relief grants

Corporate Income

3/23/2020

-$1.3

$0.0

 

Use tax exemption for personal protection equipment

Sales and Use

1/1/2020

-$1.8

$0.0

 

Adjusted the fuel tax schedule for biofuel percentage

Motor Fuel

7/1/2020

-$15.3

-$16.5

 

Tax Revenue=

   

-$51.7

-$32.4

 

Criminal fines and court surcharges

Fee

7/1/2020

$8.4

$8.4

 

Non-Tax Revenue=

   

$8.4

$8.4

 

Revenue Total=

   

-$43.3

-$24.0

Kansas

No significant tax and non-tax revenue changes.

       
 

Tax Revenue=

   

$0.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$0.0

 

Kentucky

Imposed a tax on vaping products. The tax rate is 15% of the actual price at the distributor level on open vaping systems and $1.50 on each closed vapor cartridge.

Tobacco

8/1/2020

$7.9

$15.9

 

Extended the sales and use tax to golf courses.

Sales and Use

8/1/2020

$1.9

$2.2

 

Expanded the availability of the New and Expanded Industry exemption.

Sales and Use

8/1/2020

-$2.0

-$2.0

 

Coal Severance Tax refund for coal exported outside US.

Miscellaneous

8/1/2020

-$1.3

-$1.3

 

Tax Revenue=

   

$6.5

$14.8

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$6.5

$14.8

Louisiana

Suspended the bottom tier of tax for firms with up to $1 million of taxable capital.

Corporate Income

 

-$7.0

-$0.4

 

Extended the Enterprise Zone Program from July 1, 2021 to July 1, 2026.

Corporate Income

 

$0.0

-$5.0

 

Increases the vendor compensation rate for dealers remitting on a timely basis to 1.05% from 0.935% of sales taxes collected. Retains the monthly maximum compensation of $1,500.

Sales and Use

8/1/2020

-$1.9

-$2.0

 

Exempted $5 million of promotional play wagers from state gaming taxes per gambling property (riverboat, racetrack slot facilities and land-based casinos)

Miscellaneous

 

-$11.2

-$16.3

 

Tax Revenue=

   

-$20.1

-$23.7

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

-$20.1

-$23.7

Maine

No survey received.

       
 

Tax Revenue=

       
 

Non-Tax Revenue=

       
 

Revenue Total=

       

Maryland

Established a subtraction modification for gains recognized as a result of the direct or indirect transfer or conveyance of specified racing facilities and a training center and the amount of income recognized as a result of any expenditure of specified governmental funds.

Corporate Income

6/1/2020

indeterminable

indeterminable

 

Exempted from sales and use tax specified construction materials for use in the construction or redevelopment of certain racing facility sites. Purchases must be made by Jan. 1, 2026, to be eligible for the exemption.

Sales and Use

6/1/2020

$1.8

$1.8

 

Exempted from sales and use tax qualified data center personal property purchased or leased for use at qualified data centers that meet certain eligibility requirements.

Sales and Use

7/1/2020

indeterminable

indeterminable

 

Exempted from sales and use tax custom-made earmolds, battery chargers, and receivers for artificial hearing devices.

Sales and Use

7/1/2020

indeterminable

indeterminable

 

Exempted from sales and use tax a sale of construction material or warehousing equipment purchased by a person solely for use in a qualified opportunity zone or a target redevelopment area in certain counties.

Sales and Use

7/1/2020

indeterminable

indeterminable

 

Tax Revenue=

   

$1.8

$1.8

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$1.8

$1.8

Massachusetts

Delayed the charitable deduction for fiscal year 2021 cycle. The deduction was set to take effect for fiscal year 2021 but implementation was postponed.

Personal Income

7/1/2020

$64.0

 
 

Tax Revenue=

   

$64.0

 
 

Accelerated Sales Tax for businesses with $150K or more in state tax liability in prior fiscal year.

Sales and Use

7/1/2020

$267.0

 
 

Non-Tax Revenue=

   

$331.0

 
 

Revenue Total=

   

$331.0

 

Michigan

Exempt Sales of Certain Prosthetic Devices

Sales and Use

3/4/2020

-$2.0

-$2.1

 

Tax Revenue=

   

-$2.0

-$2.1

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

-$2.0

-$2.0

Minnesota

Conformity to Section 1031 and 179 expensing revised.

Personal Income

 

$63.0

 
 

Conformity to Section 1031 and 179 expensing revised.

Corporate Income

 

$27.0

 
 

Tax Revenue=

   

$90.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$90.0

 

Mississippi

Revised the definition of the term "person doing business in this state" under the MS Use Tax law and to define the terms "marketplace facilitator," "marketplace seller" and "remote seller" under the MS Use Tax law. This expanded the number of marketplace sellers/facilitators that are required to collect and remit all applicable use tax.

Sales and Use

7/1/2020

$20-30 million

$20-30 million

 

Tax Revenue=

   

$25.0

$25.0

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$25.0

$25.0

Missouri

Exempted the economic impact payments, given out under the CARES Act in April 2020, from adjusted gross income.  Under the Missouri FIT deduction, these payments may have been taxable to some citizens.  This provision ensures the payments are not taxable. The fiscal note projection estimated this was a loss of up to $36 million.  However, this was never revenue expected by the state as it was created in April 2020 by the federal government

Personal Income

8/28/2020

-$36.0

0.0

 

Members of the military are entitled to an income tax deduction from their MO adjusted gross income, starting 1/1/2020, in an amount equal to 20%.  This deduction will increase to 40% starting 1/1/2021.  The 20% deduction will be claimed in FY 2021. It should be noted that the fiscal note calculations were based on a tax rate of 5.9% and the current rate is 5.4%.  Therefore, the estimates are expected to be lower

Personal Income

1/1/2020

-$2.2

-$3.7

 

100% tax deduction for contributions made to Long-Term Dignity Savings Account

Personal Income

1/1/2020

0

-$5.4

 

Tax Revenue=

   

$-38.2

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$-38.2

 

Montana

Not in session. No significant tax changes.

       
 

Tax Revenue=

   

$0.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$0.0

 

Nebraska

No significant tax changes.

       
 

Tax Revenue=

   

$0.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$0.0

 

Nevada

No significant tax changes.

       
 

Tax Revenue=

   

$0.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$0.0

 

New Hampshire

Adopted market-based apportionment

Corporate Income

1/1/2021

$10.0

No estimate

 

Tax conformity, including GILTI

Corporate Income

1/1/2020

$31.2

No estimate

 

Enacted a tax on sports betting

Miscellaneous

7/12/2019

$10.0

No estimate

 

Tax Revenue=

   

$51.2

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$51.2

 

New Jersey

Increased marginal tax rate imposed on gross income between $1 million to $5 million.

Personal Income

 1/1/2020

$427.0

$450.0

 

Surtax imposed on certain corporate taxpayers.

Corporate Income

1/1/2020

$333.0

$342.0

 

Increased annual assessment on HMO net written premiums.

Health Care

10/1/2020

$103.0

$137.0

 

Statutory prescribed increase in Petroleum Products Gross Receipts Tax

Motor Fuel

10/1/2020

$351.5

No estimate

 

Tax Revenue=

   

$1,214.5

$929.0

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$1,214.5

$929.0

New Mexico

2019 legislation effective in TY21; added new top income bracket starting at $210K for single, $315K MFJ, and $157.5K for MFS.

Personal Income

1/1/2021

$20.0

$40.0

 

Created the "solar market development tax credit" - provides a personal income tax credit of 10% of the cost of equipment and installation of residential, business (commercial or industrial), or agricultural solar energy systems. The amount of solar tax credits claimed is not to exceed $8 million per calendar year.

Personal Income

3/1/2020

-$5.0

-$5.0

 

Extend and expand the Investment Tax Credit - repeals the $2 million limit on the value of equipment, and changes the employment  requirements at the one job per $750 thousand investment up to $30 million and one job per $1 million investment over $30 million. Also increases the rate of credit from 5.125% effectively to the amount of the state GRT rate plus applicable local option GRT rates.

Sales and Use

7/1/2020

-$2.5

-$3.0

 

"Create a new ’technology readiness tax credit’ against GRT—applies to the state’s national laboratories’ qualified expenditures—including salaries, wages, benefits, and employer payroll taxes—in assisting businesses to license

Sales and Use

7/1/2020

-$1.5

-$1.5

 

Add electric transmission facilities as eligible projects under the Industrial Revenue Bond (IRB) Act and the County Industrial Revenue Bond Act, which would allow local governments to permit the foregoing of property taxes and state and local gross receipts taxes involved with the financing or refinancing of electric transmission facility projects.

 

7/1/2020

No estimate

No Estimate

 

Tax Revenue=

   

$11.0

$30.5

 

Non-Tax Revenue=

 

 

$0.0

$0.0

 

Revenue Total=

 

 

$11.0

$30.5

New York

Decoupled from increase in federal interest expense deduction (CARES Act).

Personal Income

Same effected tax years as the CARES Act.

$1,600

$1,600

 

Extended personal income tax credits for hiring veterans, known as the Hire-A-Vet credit. This is a temporary tax until Fiscal Year 2023. No change in taxpayer liability.

Personal Income

1/1/2021

$0

$0

 

Extended corporate income tax credits for hiring veterans, known as the Hire-A-Vet credit. This is a temporary tax until Fiscal Year 2023. No revenue impact.

Corporate Income

1/1/2021

$0

$0

 

Capped the Long Term Care Credit at $15,000 annually.  Limited to income less than $250,000.

Personal Income

1/1/2020

$0

$28

 

Increased tobacco product tax by changing from manufacturer price to tax on wholesaler.

Cigarette and Tobacco

10/102020

$10

$23

 

Extended and decreased the film tax credit from 30% to 25% credit. No change in taxpayer liability.

Corporate Income

4/1/2020

$0.0

$0.0

 

Extended the Real Estate Transfer Tax rates for REITS for New York State and New York City by three years.

Miscellaneous

9/1/2020

($1)

($2)

 

Tax Revenue=

   

$1,609.0

$1,649.0

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$1,609.0

$1,649.0

North Carolina

Conformed to federal change in allowable percent for itemized deduction for medical and dental expenses in TY 2019 and 2020.

Personal Income

 

-$36.0

 
 

To keep rate from decreasing, the tax rate in 2021 remained the same as 2020, original tax formula re-applied in 2022.

Motor Fuel

1/1/2021

$20.2

$33.4

 

Applied the states gross premiums tax to Medicaid capitation payments received by prepaid health plans.

Health Care

7/1/2021

$115.0

$247.0

 

Tax Revenue=

   

$99.2

$280.4

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$99.2

$280.4

North Dakota

No significant tax changes. (Legislature did not meet in 2020.)

   

$0.0

 
 

Tax Revenue=

   

$0.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$0.0

 

Ohio

Exempted feminine hygiene products from the sales tax

Sales and Use

4/1/2020

-$3.6

-$3.6

 

Authorized a credit up to $250 for teachers' purchases of classroom supplies, professional development

Personal Income

Tax Year 2020

-$1.0

-$1.0

 

Tax Revenue=

   

-$4.6

-$4.6

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

-$4.6

-$4.6

Oklahoma

No survey received.

       
 

Tax Revenue=

       
 

Non-Tax Revenue=

       
 

Revenue Total=

       

Oregon

City property is withdrawn from a special district.

Property

6/30/2020

-$1.7

-$1.8

 

Increased taxes on cigarettes and cigars and established a tax on e-cigarettes.

Tobacco

 

$111.1

 

 

Tax Revenue=

   

-$1.7

-$1.8

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

-$1.7

-$1.8

Pennsylvania

No significant tax actions reported.

       
 

Tax Revenue=

   

$0.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$0.0

 

Rhode Island

No significant tax actions reported.

       
 

Tax Revenue=

   

$0.0

 
 

Non-Tax Revenue=

   

$0.0

 
 

Revenue Total=

   

$0.0

 

South Carolina

The motor fuel tax increased from 24 to 26 cents per gallon as part of a multi-year increase.  It will increase another two cents in 2021.

Motor Fuel

7/1/2020

$82.6

$84.8

 

Non-refundable tax credit of 35% for angel investors (extension of previously enacted legislation)

Personal Income

5/6/2020

-$5.0

-$5.0

 

Non-refundable tax credit for qualified low-income housing projects. (Based on the federal housing tax credit in IRC 42. May also be applied against corporate income, license fees, bank, and insurance premium taxes.)

Personal Income

5/14/2020

$2.1

$1.6

 

Tax Revenue=

   

$79.7

$81.4

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$79.7

$81.4

South Dakota

No survey received.

       
 

Tax Revenue=

       
 

Non-Tax Revenue=

       
 

Revenue Total=

       

Tennessee

Required marketplace facilitators with sales over $100K to remit sales and use tax; lowers the threshold for dealers with no presence in the state, from $500K to $100K, regarding such collection.

Sales and Use

10/1/2020

$108.3

$144.4

 

One-time expansion of sales tax holiday.

Sales and Use

7/1/2020

-$9.8

$0.0

 

Enacted the Annual Coverage Assessment Act of 2020 which established an annual coverage assessment on hospitals of 4.87% of a covered hospital’s annual coverage assessment base.

Health Care

7/1/2020

$602.6

$0.0

 

Extended the Ground Ambulance Provider Assessment Act.

Health Care

7/1/2020

$10.7

$0.0

 

Extended the Nursing Home Assessment Act.

Health Care

7/1/2020

$134.6

$0.0

 

Tax Revenue=

   

$846.4

$144.4

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$846.4

$144.4

Texas

No significant tax actions reported. (Not in session.)

       
 

Tax Revenue=

   

$0.0

$0.0

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$0.0

$0.0

Utah

Amends an addition to income for corporate income tax purposes

Corporate Income

1/1/2020

-$1.0

-$1.0

 

Removes the 80% limitation on a Utah net loss carry forward for the 2018 through 2020 income tax years

Corporate Income

1/1/2020

-$2.8

 
 

Tax Revenue=

   

-$3.8

-$1.0

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

-$3.8

-$1.0

Vermont

No significant tax actions reported

       
 

Tax Revenue=

    $0.0  
 

Non-Tax Revenue=

    $0.0  
 

Revenue Total=

    $0.0  

Virginia

Increased cigarette tax from $0.30 to $0.60 per pack.

Tobacco

7/1/2020

$99.1

$108.2

 

Doubled the tax on other tobacco products (10% to 20%).

Tobacco

7/1/2020

$20.1

$22.6

 

New tax on liquid nicotine at the rate of $0.066 per milliliter.

Tobacco

7/1/2020

$3.9

$4.3

 

Monthly tax on distributors of skill games.

Miscellaneous

7/1/2020

$150.0

$0.0

 

Lowered the threshold for 1099K reporting to $600.

Personal Income

1/1/2020

$10.3

$20.6

 

Increased the motor fuels tax by $0.10 per gallon over two years. The existing gas tax is based on a percentage of the wholesale price of gasoline and diesel fuel is converted to a cents-per-gallon tax. A rate of $0.262 per gallon of gasoline will be phased in over two years, and then indexed every year thereafter

Motor Fuel

7/1/2020

$200.7

$400.5

 

Imposed 0.7% regional sales tax for transportation in Planning District 15.

Sales and Use

10/1/2020

$96.3

$198.2

 

Imposed regional fuels tax in Planning District 15.

Motor Fuel

7/1/2020

$47.1

$51.4

 

Impose a grantor's tax of $0.06 per $100 of value, called the “regional transportation improvement fee,” imposed on real estate sale transactions located in any county or city that is a member of the Hampton Roads Transportation District

Miscellaneous

7/1/2020

$7.4

$6.9

 

Impose a 1% additional Transportation District Transient Occupancy Tax (TDTOT) for localities located in the Hampton Roads Transportation District

Miscellaneous

5/1/2021

$0.6

$7.4

 

Impose a 1% additional Transportation District Transient Occupancy Tax (TDTOT) for localities located in the Northern Virginia Transportation District

Miscellaneous

5/1/2021

$2.5

$15.4

 

Additional grantor’s tax of $0.05 per $100 of value in Planning District 8

Miscellaneous

5/1/2021

$3.0

$17.8

 

Tax Revenue=

   

$641.0

$853.3

 

District Court Civil Filing Fees - Increases the fees for services of district court judges, clerks, and magistrates in civil cases by $6

Fee

7/1/2020

$3.9

$3.9

 

Reduce annual motor vehicle registration fee by $10 

Fee

7/1/2020

-$80.7

-$81.4

 

Highway Use Fee on electric vehicles

Fee

7/1/2020

$39.9

$49.3

 

Non-Tax Revenue=

   

-$36.9

-$28.2

 

Revenue Total=

   

$604.1

$825.1

Washington

Removed expiration and expanded eligibility for property tax exemption for tribal owned property used for economic development.

 

6/11/2020

   
 

Expanded and extended property tax exemption for nonprofits providing housing to very low income households.

 

7/1/2020

   
 

Clarified and expanded SUT exemptions for batteries and battery packs for electric and hybrid vessels and related infrastructure.

 

7/1/2020

   
 

Authorized the extension in certain cities of the special property valuation of historic properties.

 

6/11/2020

   
 

Extension of the multi-family property tax exemption for properties currently receiving MFTE set to expire until 12/31/21.

 

7/1/2020

   
 

Provides SUT for feminine hygiene products.

 

1/1/2022

   
 

Changes heavy equipment rental from property tax and imposes a rental tax of 1.25%.

 

6/11/2020

   
 

Extends SUT exemption for large private airplanes owned by nonresidents that are being modified in Washington until 7/1/31.

 

6/11/2020

   
 

Exempted value of constructing ADU from property taxes for three years

 

6/11/2020

   
 

Made use tax exemption permanent for receipt of prize valued under $12K from nonprofit or library fundraising activity.

 

6/11/2020

   
 

Eliminated Workforce Education Investment surcharge that was effective Jan. 1, 2020.  Delayed imposition until April 1.  Increased service B&O rate on certain business to 1.8%.  Increased rate on advanced computing businesses

 

2/10/2020

   
 

Repealed 0.2904% B&O rate for civil aircraft manufacturing. Provided for 0.357% rate if allowed pursuant to WTO agreement and certain conditions met.

 

3/25/2020

   
 

Tax Revenue=

indeterminate

     
 

Creates an insurance fraud surcharge (reduces administrative charge commensurately) to fund insurance commissioner fraud program

 

7/1/2020

   
 

Changes to business licensing fees

       
 

Non-Tax Revenue=

       
 

Revenue Total=

Indeterminate

     

West Virginia

Exempted a portion of Social Security benefits for certain taxpayers.

Personal Income

1/1/2021

-$3.1

-$10.1

 

Reduced severance tax on steam coal sold directly to electric power generators—rate reduced over a three-year period.

Miscellaneous

7/1/2020

-$26.0

-$39.0

 

Imposed a tiered Health Care Provider Tax on HMO's.

Miscellaneous

7/1/2020

$41.0

$3.7

 

Permitted counties to retain property transfer tax (phased in over a 10-year period).

Property

7/1/2021

$0.0

-$1.2

 

Tax Revenue=

   

$11.9

-$46.6

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

$11.9

-$1.2

Wisconsin

Adopted federal deduction for contributions to HSA, Archer MSA, flexible FSA, and health reimbursement arrangements used for expenses related to menstrual care products.

Personal Income

1/1/2020

-$3.2

-$4.2

 

Automatic income tax rate reduction based on estimated increased sales tax revenue from remote sellers and marketplace Providers.

Personal Income

Tax Year 2020

-$119.3

-$119.3

 

Adopted the federal subtraction before the calculation of federal AGI for up to $300 of qualified charitable contributions in tax year 2020.

Personal Income

Tax Year 2020

-$4.2

$0.0

 

Suspended state penalty for any distribution related to COVID-19 from an eligible retirement plan in 2020.

Personal Income

1/1/2020

-$12.1

$2.0

 

CARES Act - Required minimum distribution waived for qualified retirement Plans in 2020.

Personal Income

1/1/2020

-$41.0

$6.0

 

CARES Act - Minimum required contribution for single employer pension plan Deadline Extended.

Corporate Income

1/1/2020

$14.2

$1.6

 

Adopted the federal deduction for qualified charitable contributions up to 50% of federal AGI (individuals) and up to 25% of adjusted taxable income (corporations).

Corporate Income

Tax Year 2020

-$25.7

$14.4

 

Payments made by employer on behalf of employee for student loan principal and interest are excluded from income.

Corporate Income

1/1/2021

-$2.1

minimal

 

Created provisions that require a marketplace provider to collect/remit sales and use tax on sales facilitated by the marketplace provider on behalf of a marketplace seller.

Sales and Use

1/1/2020

$67.1

$67.1

 

Repealed sales tax on internet access, as required under federal law.

Sales and Use

7/1/2020

-$166.0

-$166.0

 

Decreased the administrative allowance that licensed motor vehicle fuel suppliers may deduct when remitting the fuel tax on gasoline to the Department of Revenue.

Motor Fuel

1/1/2020

$5.7

$5.7

 

Eliminated the refund of the motor vehicle fuel tax paid on gasoline received into a service station operator's storage facilities to cover shrinkage and evaporation losses.

Motor Fuel

1/1/2020

$4.2

$4.2

 

Tax Revenue=

   

-$282.4

-$188.5

 

Non-Tax Revenue=

   

$0.0

$0.0

 

Revenue Total=

   

-$282.4

-$188.5

Wyoming

Applied tax to specified nicotine products, including electronic cigarette and vapor material.

Tobacco

7/1/2020

N.A.

N.A.

 

Implemented a statewide lodging tax.

Miscellaneous

1/1/2021

$9.3

$18.6

 

Tax exemption for new oil and gas wells.

Miscellaneous

7/1/2020

-$3.6

-$3.6

 

Severance tax exemption for coal shipped internationally.

Miscellaneous

7/1/2020

N.A.

N.A.

 

Adjusted uranium taxation rates.

Miscellaneous

7/1/2020

N.A.

N.A.

 

Taxation on sale of electricity from nuclear reactors.

Miscellaneous

1/1/2021

N.A.

N.A.

 

Tax Revenue=

   

$5.2

$15.0

 

Increased filing and automation court fees

Fee

7/1/2020

$1.5

$1.5

 

Non-Tax Revenue=

   

$1.5

$1.5

 

Revenue Total=

   

$6.7

$16.5

Appendix F

Appendix F. 2020 Tax and Revenue Changes by Tax Type

State

Description

FY 2021

FY 2022

Effective Date

Arizona*

Ballot measure: 3.5% income tax surcharge

$827.0

 

1/1/2021

California

Expanded eligibility for state EITC to filers with an Individual Tax Identification Number (ITIN)

-$65.0

-$65.0

1/1/2020

Colorado

Reverses federal 199A deduction for some high-income taxpayers

$19.5

$43.2

tax year 2021

Colorado

Extended and expanded the state earned income tax credit

-$5.2

-$34.2

tax year 2021

Colorado Ɨ

Ballot measure: income tax cut

-$203.0

-$154.0

1/1/2020

Connecticut

Temporary Restrictions on the Property Tax Credit expire.

$0.0

-$53.0

12/31/2020

Connecticut

Exempt certain pension and annuity income

-$16.5

-$16.4

1/1/2019

Connecticut

Increased Teachers' Pension exemption from 25% to 50%

$0.0

-$8.0

1/1/2021

District of Columbia

Decoupled the federal capital gains tax deferral for Qualified Opportunity Fund investments that are not located in the District or are not expected to meet certain criteria.

$2.0

$6.2

10/1/2020

Georgia

IRC Update (personal and corporate income)

-$199.0

-$1.0

6/30/2020

Idaho

Federal Tax Conformity

-$6.6

-$4.3

1/1/2019

Idaho

Adopted First Time Homebuyers Tax Credit

-$1.9

-$1.9

1/1/2020

Iowa

Net operating loss change

-$1.0

-$1.0

Tax Year 2020

Iowa

Use tax exemption for personal protection equipment

-$1.8

$0.0

1/1/2020

Massachusetts

Delayed the charitable deduction for fiscal year 2021 cycle. The deduction was set to take effect for fiscal year 2021 but implementation was postponed.

$64.0

 

7/1/2020

Minnesota

Conformity to Section 1031 and 179 expensing revised

$63.0

   

Missouri

Exempted the economic impact payments, given out under the CARES Act in April 2020, from adjusted gross income.  Under the Missouri FIT deduction, these payments may have been taxable to some citizens.  This provision ensures the payments are not taxable. The fiscal note projection estimated this was a loss of up to $36 million.  However, this was never revenue expected by the state as it was created in April 2020 by the federal government

-$36.0

$0

8/28/2020

 

Members of the military are entitled to an income tax deduction from their MO adjusted gross income, starting 1/1/2020, in an amount equal to 20%.  This deduction will increase to 40% starting 1/1/2021.  The 20% deduction will be claimed in FY 2021. It should be noted that the fiscal note calculations were based on a tax rate of 5.9% and the current rate is 5.4%.  Therefore, the estimates are expected to be lower

-$2.2

-$3.7

1/1/2020

 

100% tax deduction for contributions made to Long-Term Dignity Savings Account

$0

-$5.4

1/1/2020

New Jersey

Increases marginal tax rate imposed on gross income between $1 million to $5 million

$427.0

$450.0

1/1/2020

New Mexico

2019 legislation effective in TY21; adds new top income bracket starting at $210K for single, $315K MFJ, and $157.5K for MFS

$20.0

$40.0

1/1/2021

New York

Decouple from increase in Federal interest expense deduction (CARES Act)

$1,600

$1,600

Same effected tax years as the CARES Act.

New York

Capped the Long Term Care Credit at $15,000 annually,  limited to income less than $250,000.

$0

$28

1/1/2020

New York

Extend personal income tax credits for hiring veterans, known as the Hire-A-Vet credit. This is a temporary tax until Fiscal Year 2023. No change in taxpayer liability.

$0

$0

1/1/2021

North Carolina

Conformed to Federal change in allowable percent for itemized deduction for medical and dental expenses in TY 2019 and 2020

-$36.0

   

Ohio

Authorized a credit up to $250 for teachers' purchases of classroom supplies, prof. development

-$1.0

-$1.0

Tax Year 2020

South Carolina

Non-refundable tax credit of 35% for angel investors (extension of previously enacted legislation)

-$5.0

-$5.0

5/6/2020

South Carolina

Non-refundable tax credit for qualified low-income housing projects. (Based on the federal housing tax credit in IRC 42. May also be applied against corporate income, license fees, bank, and insurance premium taxes.)

$2.1

$1.6

5/14/2020

Virginia

Lower the threshold for 1099K reporting to $600

$10.3

$20.6

1/1/2020

West Virginia

Exempt a portion of Social Security benefits for certain taxpayers.

-$3.1

-$10.1

1/1/2021

Wisconsin

Adopt federal deduction for contributions to HSA, Archer MSA, flexible FSA, and health reimbursement arrangements used for expenses related to menstrual care products.

-$3.2

-$4.2

1/1/2020

Wisconsin

Automatic Income Tax Rate Reduction Based on Estimated Increased Sales Tax Revenue from Remote Sellers and Marketplace Providers.

-$119.3

-$119.3

Tax Year 2020

Wisconsin

Adopted the federal subtraction before the calculation of federal AGI for up to $300 of qualified charitable contributions in tax year 2020.

-$4.2

$0.0

Tax Year 2020

Wisconsin

Suspended state penalty for any distribution related to Covid-19 from an eligible retirement plan in 2020.

-$12.1

$2.0

1/1/2020

Wisconsin

CARES Act - Required Minimum Distribution Waived for Qualified Retirement Plans in 2020.

-$41.0

$6.0

1/1/2020

SALES AND USE TAX

 

 

 

 

California

Required used car dealers to remit sales tax along with vehicle registration fees

$12.0

$24.0

1/1/2020

California

Extended the sales tax exemption for diapers and menstrual products

$0.0

-$23.0

1/1/2022

Colorado

Narrowed the state sales and use tax exemption for long-term lodging, allowing the exemption for long-term stays by natural persons only.

$3.7

$7.4

1/1/2021

Florida

Back-to-School Sales Tax Holiday

-$41.8

 

4/8/2020

Florida

Disaster Preparedness Sales Tax Holiday

-$5.6

 

4/8/2020

Georgia

Exempted transportation services from sales tax

-$25.0

-$30.0

8/5/2020

Georgia

Enacted Marketplace Facilitator sales tax collection requirements

$78.0

$81.0

4/1/2020

Kentucky

Extended the sales and use tax to golf courses

$1.9

$2.2

8/1/2020

Kentucky

Expanded the availability of the New and Expanded Industry exemption

-$2.0

-$2.0

8/1/2020

Louisiana

Increases the vendor compensation rate for dealers remitting on a timely basis to 1.05% from 0.935% of sales taxes collected. Retains the monthly maximum compensation of $1,500.

-$1.9

-$2.0

8/1/2020

Maryland

Exempts from sales and use tax specified construction materials for use in the construction or redevelopment of certain racing facility sites. Purchases must be made by Jan.1, 2026, to be eligible for the exemption.

$1.8

$1.8

6/1/2020

Maryland

Exempts from sales and use tax qualified data center personal property purchased or leased for use at qualified data centers that meet certain eligibility requirements

indeterminable

indeterminable

7/1/2020

Maryland

Exempts from sales and use tax custom-made earmolds, battery chargers, and receivers for artificial hearing devices

indeterminable

indeterminable

7/1/2020

Maryland

Exempts from sales and use tax a sale of construction material or warehousing equipment purchased by a person solely for use in a qualified opportunity zone or a target redevelopment area in certain counties

indeterminable

indeterminable

7/1/2020

Massachusetts

Accelerated sales tax for businesses with $150K or more in state tax liability in prior fiscal year.

$267.0

 

7/1/2020

Michigan

Exempt sales of certain prosthetic devices

-$2.0

-$2.1

3/4/2020

New Mexico

Create a new "technology readiness tax credit" against GRT—applies to the state’s national laboratories’ qualified expenditures—including salaries, wages, benefits, and employer payroll taxes—in assisting businesses to license

-$1.5

-$1.5

7/1/2020

Ohio

Exempted feminine hygiene products from the sales tax

-$3.6

-$3.6

 

Tennessee

Required marketplace facilitators with sales over $100K to remit sales and use tax; lowers the threshold for dealers with no presence in the state, from $500K to $100K, regarding such collection.

$108.3

$144.4

10/1/2020

Tennessee

One-time expansion of sales tax holiday

-$9.8

$0.0

7/1/2020

Tennessee

Required marketplace facilitators with sales over $100K to remit sales and use tax; lowers the threshold for dealers with no presence in the state, from $500K to $100K, regarding such collection.

$108.3

$144.4

10/1/2020

Virginia

Imposed 0.7% regional sales tax for transportation in Planning District 15

$96.3

$198.2

10/1/2020

Wisconsin

Created provisions that require a marketplace provider to collect/remit sales and use tax on sales facilitated by the marketplace provider on behalf of a marketplace seller.

$67.1

$67.1

1/1/2020

Wisconsin

Repealed sales tax on internet access, as required under federal law.

-$166.0

-$166.0

7/1/2020

Washington

Extends SUT exemption for large private airplanes owned by nonresidents that are being modified in Washington until 7/1/31

No estimate

No estimate

6/11/2020

Washington

Makes use tax exemption permanent for receipt of prize valued under $12K from nonprofit or library fundraising activity.

No estimate

No estimate

6/11/2020

Washington

Provided a sales and use tax exemption for feminine hygiene products

No estimate

No estimate

1/1/2022

CORPORATE INCOME TAX

 

 

 

 

Alaska

Automatically conformed to net operating loss provisions included in the federal CARES Act

-$100.0

-$100.0

3/27/2020

California

Suspended net operating loss deductions for taxpayers with net income above $1 million

$1,820.0

$1,300.0

1/1/2020

California

Limited the use of most business tax credits to a total of $5 million per year

$2,000.0

$1,540.0

1/1/2020

California

Interaction between the limitation on net operating loss deductions and tax credits will result in an additional revenue increase.

$611.0

$454.0

1/1/2020

California

Established first-year exemption from minimum tax for LLCs and partnerships.

-$50.0

-$100.0

1/1/2021

Colorado

Decoupled from business relief provisions in the federal CARES Act, including deductions for NOLs, excess business losses, and business interest income.

$79.8

$23.1

tax year 2020

Connecticut

Eliminate the Capital Stock Tax method (phased out)

-$5.7

-$9.5

1/1/2021

Connecticut

Sunset the (now) 10% surcharge, which was established in 2012 @ 20%

-$22.5

-$15.0

12/31/2020

District of Columbia

Repealed a number of provisions of the District’s tax incentives for qualified high-technology companies

$27.5

$34.9

10/1/2020

District of Columbia

Delayed implementation of combined reporting laws that would allow publicly-traded companies a future deduction if the implementation of combined reporting resulted in an increase in a combined group’s net deferred tax liability

$7.4

$7.4

1/1/2021

District of Columbia

Taxable income includes gains from a sale or other disposition of assets, even if such sale results in the termination of an unincorporated business

$1.1

$3.3

1/1/2021

Georgia

PPE Manufacturer Tax Credit

-$7.0

-$7.0

6/30/2020

Indiana

Reduced the corporate income tax rate as part of a multi-year phased-in reduction enacted in 2014. The rate was lowered from 6.5% in FY 2016 to 4.9% in FY 2022.

-$195.7

-$216.6

7/1/2020

Iowa

Business interest and GILTI

-$20.0

-$9.2

Tax Year 2019

Iowa

Broadband grants

-$2.3

-$1.5

Tax Year 2019

Iowa

Paycheck Protection Program

-$5.8

$0.0

Tax Year 2019

Iowa

Entity level income tax

-$4.2

-$4.2

Tax Year 2020

Louisiana

Suspended the bottom tier of tax for firms with up to $1 million of taxable capital.

-$7.0

-$0.4

 

Louisiana

Extended the Enterprise Zone Program from July 1, 2021 to July 1, 2026.

$0.0

-$5.0

 

Maryland

Establishes a subtraction modification for gains recognized as a result of the direct or indirect transfer or conveyance of specified racing facilities and a training center and the amount of income recognized as a result of any expenditure of specified governmental funds

indeterminable

indeterminable

6/1/2020

Minnesota

Conformity to Section 1031 and 179 expensing revised

$27.0

   

Mississippi

Revised the definition of the term "person doing business in this state" under the MS Use Tax law and to define the terms "marketplace facilitator", "marketplace seller" and "remote seller" under the Mississippi Use Tax law. This expanded the number of marketplace sellers/facilitators that are required to collect and remit all applicable use tax.

$20-30 million

$20-30 million

7/1/2020

New Hampshire

Adopted market-based apportionment

$10.0

No estimate

1/1/2021

New Hampshire

Tax conformity, including GILTI

$31.2

No estimate

1/1/2020

New Jersey

Surtax imposed on certain corporate taxpayers

$333.0

$342.0

1/1/2020

New Jersey

Increase in annual assessment on HMO net written premiums

$103.0

$137.0

10/1/2020

New York

Extend corporate income tax credits for hiring veterans, known as the Hire-A-Vet credit. This is a temporary tax until Fiscal Year 2023. No revenue impact.

$0

$0

1/1/2021

New York

Extended and decreased the film tax credit from 30% to 25% credit. No change in taxpayer liability.

$0.0

$0.0

4/1/2020

Utah

Amends an addition to income for corporate income tax purposes

-$1.0

-$1.0

1/1/2020

Utah

Removes the 80% limitation on a Utah net loss carry forward for the 2018 through 2020 income tax years

-$2.8

 

1/1/2020

Wisconsin

CARES Act - Minimum required contribution for single employer pension plan deadline extended

$14.2

$1.6

1/1/2020

Wisconsin

Adopted the federal deduction for qualified charitable contributions up to 50% of federal AGI (individuals) and up to 25% of adjusted taxable income (corporations)

-$25.7

$14.4

Tax Year 2020

Wisconsin

Payments made by employer on behalf of employee for student loan principal and interest are excluded from income.

-$2.1

minimal

1/1/2021

HEALTH CARE TAX

 

 

 

 

Alabama

Increased the privilege assessment on nursing facilities.

$112.1

unknown

9/1/2020

California

Reauthorize and modify managed care organization (MCO) enrollment tax

$394.0

$729.0

1/1/2020

North Carolina

Applies the states gross premiums tax to Medicaid capitation payments received by prepaid health plans.

$115.0

$247.0

7/1/2021

Tennessee

Enacts the Annual Coverage Assessment Act of 2020 which establishes an annual coverage assessment on hospitals of 4.87% of a covered hospitals annual coverage assessment base.

$602.6

$0.0

7/1/2020

Tennessee

Extended the Ground Ambulance Provider Assessment Act

$10.7

$0.0

7/1/2020

Tennessee

Extended the Nursing Home Assessment Act

$134.6

$0.0

7/1/2020

TOBACCO TAXES

 

 

 

 

Colorado Ɨ

Ballot measure: tobacco tax increase

$87.4

$177.1

1/1/2021

Georgia

Implemented a tax on vaping

$3.0

$7.0

1/1/2021

Kentucky

Imposed a tax on vaping products. The tax rate is 15% of the actual price at the distributor level on open vaping systems and $1.50 on each closed vapor cartridge.

$7.9

$15.9

8/1/2020

New York

Increased tobacco product tax by changing from manufacturer price to tax on wholesaler.

$10

$23

10/10/2020

Virginia

Increase cigarette tax from $0.30 to $0.60 per pack

$99.1

$108.2

7/1/2020

Virginia

Double the tax on other tobacco products (10% to 20%)

$20.1

$22.6

7/1/2020

Virginia

New tax on liquid nicotine at the rate of $0.066 per milliliter

$3.9

$4.3

7/1/2020

MOTOR FUEL TAX

 

 

 

 

District of Columbia

Establishes a new local transportation surcharge on motor vehicle fuels of $0.053 in FY21 and $0.103 in FY22, to be increased by CPI annually and dedicates the revenue to local transportation projects.  The base motor vehicle fuel tax rate will remain at $.235 and revenue from that tax will continue to be dedicated to the local Highway Trust Fund.

$5.6

$11.9

10/1/2020

Iowa

Adjusted the fuel tax schedule for biofuel percentage

-$15.3

-$16.5

7/1/2020

New Jersey

Statutory prescribed increase in petroleum products gross receipts tax

$351.5

No estimate

10/1/2020

North Carolina

To keep rate from decreasing, the tax rate in 2021 remains the same as 2020, original tax formula re-applied in 2022

$20.2

$33.4

1/1/2021

South Carolina

The motor fuel tax increased from 24 to 26 cents per gallon as part of a multi-year increase. It will increase another two cents in 2021.

$82.6

$84.8

7/1/2020

Virginia

Increase the motor fuels tax by $0.10 per gallon over two years. The existing gas tax based on a percentage of the wholesale price of gasoline and diesel fuel is converted to a cents-per-gallon tax. A rate of $0.262 per gallon of gasoline will be phased in over two years, and then indexed every year thereafter

$200.7

$400.5

7/1/2020

Virginia

Impose regional fuels tax in Planning District 15

$47.1

$51.4

7/1/2020

Wisconsin

Decrease the administrative allowance that licensed motor vehicle fuel suppliers may deduct when remitting the fuel tax on gasoline to the Department of Revenue

$5.7

$5.7

1/1/2020

Wisconsin

Eliminate the refund of the motor vehicle fuel tax paid on gasoline received into a service station operator's storage facilities to cover shrinkage and evaporation losses.

$4.2

$4.2

1/1/2020

MISCELLANEOUS TAX

 

 

 

 

Connecticut

Phased reduction or elimination of the state Admissions & Dues tax for various venues

-$0.8

$0.0

7/1/2019

Connecticut

10-cent surcharge on plastic bags expires as plastic bags are banned effective July 1, 2021

$0.0

-$7.0

6/30/2021

Connecticut

Adopt Federal Exemption Level for Inheritance and Estate Tax (phased in)

-$28.3

-$13.2

1/1/2018

District of Columbia

Reduced the amount of assets that can be excluded from District taxes when transferred from a deceased person’s estate from $5.682 million to $4 million

$1.8

$2.4

1/1/2021

Indiana

Reduced the Financial Institution Tax as part of a multi-year phased-in reduction enacted in 2014. The FIT rate was lowered from 6.5% in CY 2018 to 4.9% in CY 2023 and thereafter.

-$31.5

-$38.3

1/1/2020

Indiana

Modification of SUTA (State Unemployment Tax Act) taxes. The legislation freezes the rate schedule at the 2020 rate for calendar years 2021-2025. After 2025, the rate schedule will adjust according to the fund ratio. Under the prior law the rate schedule, frozen at schedule E from 2011 through 2020, would vary beginning in 2021 depending on the fund ratio of the unemployment trust fund. The fund ratio is equal to the balance in the Unemployment Insurance Trust Fund divided by covered payroll.  The bill intended to prevent a shift to a lower rate schedule. The reduced tax shift was anticipated to occur given the continued low unemployment levels leading up to the beginning of 2020. This would have reduced tax revenue into the unemployment trust fund over time. Given the sudden high unemployment rates related to the COVID-19 pandemic, the law change now may prevent a shift to a rate schedule with higher tax rates due to a reduced fund ratio.

indeterminable

indeterminable

1/1/2021

Kentucky

Coal severance tax refund for coal exported outside US

-$1.3

-$1.3

8/1/2020

Louisiana

Exempted $5 million of promotional play wagers from state gaming taxes per gambling property (riverboat, racetrack slot facilities, and land-based casinos)

-$11.2

-$16.3

Louisiana

New Hampshire

Enacted a tax on sports betting

$10.0

No estimate

7/12/2019

New York

Extended the Real Estate Transfer Tax rates for REITS for New York State and New York City by three years.

($1)

($2)

9/1/2020

Oregon

City property is withdrawn from a special district

-$1.7

-$1.8

6/30/2020

Virginia

Impose a grantor's tax of $0.06 per $100 of value, called the “Regional transportation improvement fee,” imposed on real estate sale transactions located in any county or city that is a member of the Hampton Roads Transportation District.

$7.4

$6.9

7/1/2020

Virginia

Impose a 1% additional Transportation District Transient Occupancy Tax (TDTOT) for localities located in the Hampton Roads Transportation District.

$0.6

$7.4

5/1/2021

Virginia

Impose a 1% additional Transportation District Transient Occupancy Tax (TDTOT) for localities located in the Northern Virginia Transportation District

$2.5

$15.4

5/1/2021

Virginia

Additional grantor’s tax of $0.05 per $100 of value in Planning District 8

$3.0

$17.8

5/1/2021

Virginia

Monthly tax on distributors of skill games

$150.0

$0.0

7/1/2020

Washington

Changes heavy equipment rental from property tax and imposes a rental tax of 1.25%

No estimate

No estimate

6/11/2020

Washington

Eliminates Workforce Education Investment surcharge that was effective Jan 1 2020.  Delayed imposition until April 1.  Increases service B&O rate on certain business to 1.8%.  Increases rate on advanced computing businesses

No estimate

No estimate

2/10/2020

Washington

Repealed 0.2904% B&O rate for civil aircraft manufacturing. Provided for 0.357% rate if allowed pursuant to WTO agreement and certain conditions met.

   

3/25/2020

West Virginia

Reduce severance tax on steam coal sold directly to electric power generators--rate reduced over a three-year period

-$26.0

-$39.0

7/1/2020

West Virginia

Impose a tiered health care provider tax on HMO's

$41.0

$3.7

7/1/2020

Wyoming

Implemented a statewide lodging tax

$9.3

$18.6

1/1/2021

Wyoming

Tax exemption for new oil and gas wells

-$3.6

-$3.6

7/1/2020

Wyoming

Severance tax exemption for coal shipped internationally

N.A.

N.A.

7/1/2020

Wyoming

Adjusted uranium taxation rates

N.A.

N.A.

7/1/2020

*Arizona Joint Legislative Budget Committee Estimate, 2020

Ɨ Colorado Legislative Council Blue Book Estimate, 2020

ǂ Oregon Fiscal Impact Committee Estimate, 2020