Bloomberg.com recently updated its annual slideshow, “Most & Least Taxing States 2013,” which highlights the odd and noteworthy in state taxation. Much of state tax policy appears to be up in smoke as Colorado and Maine work through the haze of taxing marijuana sales. When it comes to taxing more conventional smokes, states such as Missouri and Utah are taking diametrically opposed positions. Meanwhile, the old saying regarding death and taxes remains true But at least Georgia residents are no longer subject to the state’s “birthday tax.” Also, find out what prompted pro-golfer Phil Mickelson to seek to drive state tax policy.
In Colorado, after voters approved a constitutional amendment to legalize the use and possession of up to one ounce of marijuana for those over 21, the state is now dealing with how to tax marijuana. A legislative panel recently said that pot could be taxed at rates above 30 percent (a 15 percent excise tax, plus a 15 percent sales tax, plus any local taxes), but the rate is subject to voter approval, reports the Denver Post.
Also dealing with marijuana, Maine Revenue Services issued an opinion in 2011 advising that although medical marijuana is generally subject to a 5 percent tax, medical-marijuana-laced brownies are subject to a 7 percent tax, considering these brownies to be “prepared foods,” the Bangor Daily News explains.
In tobacco news, Missourians last year rejected a voter initiative to raise the excise tax on tobacco to 90 cents, thus maintaining the lowest excise tax on cigarettes in the country at only 17 cents per pack. Similarly, while Minnesotans also pressured Gov. Mark Dayton (D) to drop his proposal to increase cigarette taxes, Utah increased its tax on cigarettes in 2011 just over $1 per pack up to $1.70, and recently proposed adding a tax on electronic cigarettes as well. This would continue Utah’s tendency towards “sin” taxes, along with its 10 percent taxes on alcohol as well as businesses that feature nude performances.
In non-smoking updates, Georgia recently amended a tax it imposes based on the value of the taxpayer’s car, known as the “birthday tax” because of its annual due date on each taxpayer’s birthday. As of March 1, the tax no longer applies to those who buy new cars, although those buyers will have to pay a one-time title tax instead.
And finally, as golf weather has finally arrived, last November, California voters approved Proposition 30 to raise the state’s top income bracket to 13.3 percent, the highest in the nation, much to the chagrin of PGA Tour pro Phil Mickelson, who threatened to follow in Tiger Woods’ shoes and leave the state for one with a less burdensome income tax.
By Michael Kerman
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)