Taxes
House lawmakers advance measure to tax digital advertising platforms
Supporters say the legislation could generate hundreds of millions of dollars in annual revenue for the state.
Texas is giving data centers more than $1 billion in tax breaks each year
The tax break is one of the state’s costliest incentive programs and soon to be the most expensive of its kind in the nation.
Bill to provide tax breaks for data centers reintroduced by Colorado lawmakers
The bill would offer a 100% sales and use tax exemption for qualified data centers for at least 20 years.
California tax revenue getting a boost from AI boom — but for how long?
As talk of a possible AI bubble grows, so does uncertainty around an important source of California tax money.
How government leaders can balance the pros and cons of data center development
Policy and partnerships with tech companies can give state and local leaders a lever to ensure data centers are developed responsibly and sustainable, experts said during a recent webinar.
Exclusive
Direct File won’t happen in 2026, IRS tells states
The free service that allowed taxpayers to file online directly with the IRS was used by hundreds of thousands of taxpayers in 2024 and 2025, who gave it high marks — although tax prep companies and Republicans have sought its end.
Judge strikes down provision of digital ad tax as First Amendment violation
The order strikes down one portion of the state's first-of-its-kind tax on digital advertising that prohibited online companies from alerting consumers to the tax, by passing it on to them as a surcharge, fee or line item on their bills.
Trump’s 'big, beautiful bill' directs Treasury to find a replacement for Direct File
The IRS debuted Direct File — which enabled taxpayers to file online with the agency for free — as a pilot in 2024 and it received largely positive reviews from those that used it.
Minnesota lawmakers extend tax breaks for Big Tech data centers
The once boutique tax subsidy has exploded in cost in recent years, as tech companies chased the benefit to meet ever increasing demand for computing power.
Exclusive
Direct File is 'beloved by its users,' internal IRS report says
The IRS is reportedly ending the Direct File, but a report obtained via the Freedom of Information Act says that 94% of users rated their experience as “excellent” or “above average.”
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Survey: Time, cost and complexity prevent some from filing taxes altogether
The findings come as U.S. lawmakers are poised to end the Direct File program, which offers Americans a free, online tax filing service directly with the government.
Ending Direct File could have downstream impacts for states, experts worry
Without the free, government-backed tax filing service, state agencies could see their modernization and efficiency gains unraveled, those experts say.
Cryptocurrency tax revenue negligible since launch of Colorado program
In the more than two years that Colorado has accepted cryptocurrency as payment for state taxes, the amount it has received is negligible.
Minnesota Senate Democrats propose new tax on social media companies
Some Minnesota lawmakers are proposing a first-in-the-nation tax on large social media companies that collect data on consumers in the state.
New Jersey turns to Direct File to make tax filing easier for older adults
The Garden State is one of several that are now making retirees eligible for the federal Direct File program.
States face an elevated risk of tax fraud due to data breaches, report says
Tech and data aren’t the only tools governments have to detect and mitigate fraud, one expert said.
Filing taxes is hard. Here’s how agencies could help make it easier for residents.
As states increasingly turn to developing free, online tax filing tools for residents, civic tech experts said improving usability and experience is key.
IRS Direct File to open a week after Trump’s inauguration
Republicans on Capitol Hill have asked the incoming president to scrap the free tax filing service developed during the Biden administration.
Republican lawmakers ask Trump to kill IRS Direct File
The new program intended to enable free, online tax filing directly with the government has garnered controversy and praise since its inception.
How tougher regulations on short-term rentals can boost revenue for state, local govs
Some short-term rental properties go undetected by authorities, but a new report offers tips on how officials can crack down on unregulated rental units to boost revenue and reduce their negative impacts on communities.
