A tremendously useful service is performed annually by the National Association of State Budget Officers (NASBO), which analyzes gubernatorial State of the State addresses and gubernatorial budget proposals. A few weeks ago, NASBO’s Brian Sigritz, director of state fiscal studies there, culled through these documents and plucked out highlights dealing directly with recommended revenue actions.

There’s a great deal going on, and later this spring, when NASBO publishes its Fiscal Survey of the States, more details will be provided. Stay tuned to Management Updates here for word of when the Fiscal Survey is released.

In the meanwhile, drawing directly from Sigritz’s work, here are a handful of the most dramatic or intriguing possible changes in the way states bring in the dollars they need to pay their bills or set aside cash for the future. To see a far more complete list, click here: 

Connecticut – The “Budget proposal called for a series of changes to corporate taxes including accelerating the elimination of the capital base tax, modifying the research and development credit exchange program by increasing the reimbursement percentage to 90 percent for the biotech sector, reforming the unitary tax and net operating losses, extending the corporate surcharge for three additional income years, and reducing the top film production tax credit rate from 30 percent to 25 percent of qualifying expenditures.”

Florida – “The budget proposal includes $2.2 billion in tax relief through permanent and temporary changes. For businesses, the budget repeals the business rent tax, creates a new venture capital tax credit program, and permanently extends the sales tax exemption for Data Center Property. For homebuyers, the budget provides a one-year exemption of intangibles tax for the first $500,000 of residential mortgages for the purchase of a primary (owner-occupied) residence.”

Maryland – The “Budget proposal includes a series of individual income tax changes such as doubling the standard deduction and eliminating itemized deductions, eliminating the standard deduction penalty for low-income workers, consolidating the bottom four income tax brackets at 4.7 percent, expanding the child tax credit, adding two new tax brackets for high-income households, and adding a 1.0 percent surcharge on capital gain income for high-income households for four years.”

New Jersey – The “Recommended budget proposes a range of tax policy changes to generate additional revenue, including but not limited to, expansion of the current sales and use tax base, increases for the highest tier of assessment on real property greater than $1 million, and tax increases on sports betting, alcohol, adult-use marijuana, and cigarettes.”

New York – The “Budget proposal provides “Inflation Refund” checks to 8.6 million New Yorkers of $500 for joint filers making less than $300,000 and $300 for single filers making less than $150,000, reduces rates for five of the state’s nine tax brackets to provide middle-class tax relief, and expands the Child Tax Credit over two years to provide $1,000 for kids under age four and $500 for kids of ages 4-16.”

Virginia – The “Budget proposal called for offsetting the car tax for working families by allocating funds for a refundable income tax credit for individuals ($150) and joint filers ($300) below income thresholds, exempting tipped income from individual income taxes for more than 250,000 Virginians in the food service, personal service, and hospitality industry, and making the existing $8,500/$17,000 standard deduction permanent.”

West Virginia – The State of the State called for ensuring “West Virginia has the lowest income tax of the states it borders.”

Wisconsin – The “Budget proposal directs property tax credits to taxpayers through the school levy tax credit; provides aid to local governments that agree to freeze property taxes; and increases property tax relief programs under the individual income tax for veterans, seniors, individuals with disabilities, and others. It also eliminates the tax on cash tips, eliminates the sales tax on everyday household items and costs, including over-the-counter medications and utility bills, enhances the Earned Income Tax Credit (EITC), and nearly doubles the personal tax exemption under the Wisconsin individual income tax.”

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