Weekly Round-Up: States Grapple with Tax Reform and Budget Concerns

Highlights from the 1/22/18 through 1/26/18 issues of the Daily Tax Report: State :

  • Massachusetts Governor Pushing Again for Short-Term Rental Tax

    Massachusetts Gov. Charlie Baker (R) in his fiscal year 2019 state budget has again proposed requiring the operators of short-term room rentals to collect the state's room occupancy tax.

  • Utah Tax Reform Efforts Face Uphill Battle in 2018

    Utah Gov. Gary R. Herbert (R) urged the state Legislature to make tax policy revisions even as lawmakers were predicting that comprehensive reform efforts in 2018 are probably dead given uncertainty about the recent federal tax changes.

  • States Uneasy Over Tax Impact of Marijuana Policy Change

    States with legalized marijuana are watching for the possible effect on pot tax revenue given the Justice Department's recent reversal of its “hands-off” approach on state marijuana oversight.

  • State Tax Workarounds Could Mean $154 Billion Lost to Treasury

    New York state lawmakers could punch a $50.6 billion hole in the federal government's budget by revamping their state income tax. If California followed the same approach, its Legislature could keep $66.8 billion out of the U.S. Treasury. And in New Jersey, state lawmakers could hold back $12.5 billion more.

  • Pennsylvania Lawmakers: Rescind Bonus Depreciation Bulletin

    Pennsylvania lawmakers are trying to undo recent revenue department guidance that prevents Pennsylvania businesses from taking advantage of new federal rules around bonus depreciation.

  • Michigan Senate Votes for $91M Child Care, Local Tax Tweaks

    Bipartisan state and local income tax breaks are advancing through the Michigan Legislature despite concerns by Gov. Rick Snyder (R) about how the state will foot the bill.

  •  Cut! Kentucky Budget Proposal Would Pause Film Tax Credit

    Kentucky's tax credit for film and theater is facing a closing curtain with Gov. Matt Bevin's (R) budget proposal and a tourism department concerned the state can no longer justify the expense.

  • Louisiana Falling Off Fiscal Cliff in Proposed FY 2019 Budget

    Louisiana Gov. John Bel Edwards’ (D) office proposed a fiscal year 2019 budget to lawmakers—in hopes that it won't be adopted.

  •  Federal Law Prompts States to Weigh Own Tax Policy Overhauls

    California. Maryland. New Jersey. New York. Pennsylvania. These states are joining number of others in proposing policy changes to bypass federal tax law changes that eliminate many deductions and alter the way businesses are treated.

  •  Nebraska Lawmakers Seek to Retain Personal Income Tax Exemption

    A Nebraska bill introduced Jan. 18 would allow state taxpayers to continue claiming personal exemptions on their state taxes despite the elimination of the personal exemption in the federal tax code.

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

  • Arkansas Issues Publication on Economic Development Programs

  • Maryland Announces Amazon Incentive Legislation

  • New York Adopts Life Sciences Research, Development Credit

  • New York Shuts Down Company for Scamming Homeowners Seeking Property Tax Rebate

Get a free trial to Bloomberg BNA Tax & Accounting's State Tax solution , a comprehensive research service that provides deep analysis and time-saving practice tools to help practitioners make well-informed decisions.

In other developments …

How High Are Cigarette Tax Rates in Your State? by the Tax Foundation

State Tax Impact of Federal Tax Reform for Asset and Wealth Management by PwC