Taxes

Why States and Localities Should Increase—Not Decrease—Spending

COMMENTARY | State and local governments that cut public spending after the Great Recession fared worse than those that increased spending. Let’s not make the same mistake again.

New Jersey Leaders Agree On Deal to Hike Taxes on Millionaires

Governor Phil Murphy and top Democratic lawmakers announced plans on Thursday for a higher tax rate on incomes between $1 million and $5 million. The bulk of the revenue from the tax increase would cover the cost of a new middle class tax break.

Paid Leave Measure to Appear on Colorado Ballot This November

The medical and family leave program would be funded by a tax paid by employers and workers in the state. Eight other states now have similar programs in place.

In One State, a Threat to Freeze Property Taxes in Cities That ‘Defund’ Police

The proposal from Texas’ governor and other Republicans in the state comes in response to cuts and other changes that Austin made to its police budget.

Michigan’s ‘Tampon Tax’ Challenged in New Lawsuit

The litigation is part of a national movement toward exempting menstrual products from states' sales taxes.

A Lawsuit Seeks to Restore Local Power to Tax Sugary Drinks

California enacted a law in 2018 that creates a huge roadblock for cities that want to tax soda and other sugary beverages. That statute now faces a challenge in court.

Virus’ Hit to Sales Tax Revenues is Coming Into Focus and It’s Not Good

New data shows a 10%, or $42 billion, drop in state and local sales tax receipts in the second quarter. Factors like whether groceries are taxed appear to be affecting collections in some states.

‘One-Third of Our Income Is Gone’: A Rural State Faces a Big Budget Gap

Fallout from the coronavirus pandemic and downturns with oil, gas and coal have left Wyoming in a tough financial spot, with deep agency cuts and layoffs on the horizon.

Budget Stress Presents Added Obstacle for School Reopening

School districts face extra costs to safely bring back students after shutting down due to the coronavirus. At the same time, the outbreak is pressuring state and local government budgets.

Support to Restore Nixed Municipal Refinancing Tool Grows in Congress

The 2017 federal tax overhaul eliminated tax-exempt advance refunding, but the coronavirus crisis has lawmakers looking at the possibility of bringing it back.

Black Homeowners Pay More Than ‘Fair Share’ in Property Taxes

Many tax assessors still routinely saddle Black and minority residents with property tax bills that are too high given the value of their homes.

Black Businesses Largely Miss Out on Opportunity Zone Money

Minority investors often lack relationships with banks.

Two Years After the Wayfair Decision, State Governments Still Lag on Modernizing Technology Infrastructure to Collect Online Sales Tax Revenue

COMMENTARY | Two years have passed since the landmark Supreme Court decision and the Covid-19 pandemic has put more emphasis on online sales tax revenue than ever before. As states grapple with budget shortfalls, leaders will need to carefully consider how technology is used to ensure that no tax revenue goes unaccounted for.

San Francisco Voters to Decide on Taxing Companies With Outsized Executive Pay

Local elected leaders are sending the tax plan to the ballot, citing concerns about equity and the large hole that the coronavirus has blown in the city's budget.

Colorado Groups Push for Tax Hike on Higher Earners to Help With Budget Shortfall

The temporary income tax increase they’re supporting would apply to households making upwards of $250,000 per year. The state, like others, is facing budget pressures tied to the coronavirus outbreak.

What Tax Policy Might Look Like in the Era of Covid-19

COMMENTARY | States are facing significant shortfalls in tax revenue. Leaders will need to think carefully how to execute tax policy in an uncertain economic climate.

In an Airport City, Coronavirus Travel Slump Stokes Budget Worries

SeaTac, Washington is in relatively good financial shape. But its tax revenues depend heavily on a sector that’s taking a beating during the disease outbreak.

Extended Income Tax Deadline Is Yet Another Coronavirus Budget Curveball for States

Shifting the due date for income tax filings to July from April will likely create some budget gaps that states will have to manage in the final months of their fiscal years.

Worker Safety Net Measures Get Attention As Coronavirus Outbreak Grinds On

New York’s governor on Monday promised a paid sick leave proposal for people subject to quarantines.