Weekly Round-Up: State Budget Woes and Tax Reform Stand-Offs

Highlights from the 5/30/17 through 6/2/17 issues of the Daily Tax Report: State :

  • Louisiana Special Session Likely as State Faces Budget Gap
    Louisiana's governor issued a call for a special session as the Legislature remains in gridlock over passing the state's operating and construction budgets.
  • Illinois Blows Past Another Budget Deadline
    Illinois lawmakers declined to pass a budget ahead of a May 31 legislative deadline, in a political parlor game that has become all too familiar and leaves the state in fiscal crisis.
  • Kansas House Votes Down Another Tax Reform Bill
    Kansas tax reformers stumbled once again late May 30 while on the verge of scrapping most of Gov. Sam Brownback's (R) controversial 2012 tax cuts, as the House voted down a proposal that had won an almost veto-proof majority earlier in the day in the Senate.
  • New Mexico Governor Quashes Gross Receipts, Marketplace Taxes
    A series of New Mexico tax proposals targeting digital sales once again fell victim to Gov. Susana Martinez's (R) veto. The governor took action May 26 on several pieces of legislation crafted to address the state's budget crisis. While she signed off on select spending measures, several tax provisions were singled out through a line-item veto of H.B. 2.
  • Kentucky Special Session Will Address Tax Reform: Governor
    Kentucky Governor Matt Bevin (R) said he will call a special session of the state's general assembly to address tax reform and funding of the state's struggling pension systems. But he still hasn't set a date.
  • Oklahoma Legislature Sends Budget to Governor
    The Oklahoma Legislature sent a $6.85 billion general appropriations bill to the governor on the last day of the session, facing an $878 million budget shortfall.
  • Repeal of Personal Property Tax Debated in Wisconsin
    Efforts to eliminate the personal property tax are gaining momentum in Wisconsin with commercial groups and small businesses uniting behind a repeal bill during a May 24 legislative hearing.

 Some notable developments from the State Tax Developments Tracker—Bloomberg BNA’s tool for monitoring important developments in all the states:

  • California State Board of Equalization Publishes Sales and Use Tax Guidance to Dining, Beverage Industry
  • Indiana Department of Revenue Explains Estimated Tax Payment Methods
  • Oklahoma Legislature Modifies Sales Tax Exemption for Motor Vehicles
  • Oregon Legislature Amends Law Concerning Unitary Business Determination of Corporate Affiliates
  • New Jersey Superior Court Finds Domestic Partner Not Entitled to Partner's Estate Tax Refund

For more information about this and other state tax issues, sign up for a  free trial  of the Bloomberg BNA Premier State Tax Library.

In other developments …  

West Virginia Gross Receipts Tax Proposals Just Won’t Die by the Tax Foundation

Minnesota Enacts Sales and Use Tax Legislation Addressing Marketplace Providers and Retailers by PwC


Compiled by Chreasea Dickerson