The State Of Some States’ Tax Moves
New Mexico legislature sends a tax package to Gov. Michelle Lujan Grisham. The Democratic governor has until March 6 to sign House Bill 252, which would implement deductions and credits that together would cut individual income taxes by $272 million.
Ballot initiative on Washington State’s capital gains tax won’t be considered in the legislature. State lawmakers have confirmed that they will not consider a recently qualified ballot initiative to repeal the state’s 7 percent tax on annual long-term capital gains that exceed $250,000, reports TaxNotes. Instead, voters will decide on the measure in November.
Hawaii lawmakers are considering a tourist tax to help conserve natural resources. Legislation is moving through the state capitol and might be approved this spring, The Wall Street Journal reports. The state, home to 1.4 million residents, hosted nearly 10 million visitors last year. Under the legislation, visitors would pay a $25 fee when they check into a hotel or short-term rental.
No tax cuts planned by Virginia state lawmakers. Virginia’s House and Senate released competing state budgets this week, and neither includes income tax cuts or a sales tax increase proposed by Republican Gov. Glenn Youngkin. Instead, the budgets propose raises for state workers and teachers and additional spending on K-12 schools, Medicaid, and mental health services.
Newark City Council considers a per-semester student tax on the University of Delaware. The Delaware city faces an $8 million revenue gap in 2025; to help close it, policymakers want to impose a tax of up to $50 per student each semester attending the University of Delaware. The tax could generate between $2 million and $2.4 million in annual revenue. The University owns nearly 35 percent of the untaxed property in Newark but, as a 501(c)3 nonprofit organization, is exempt from paying property taxes. The city and the university have had a voluntary payment-in-lieu-of-taxes agreement since the 1960s valued at $180,000 annually. That amount hasn’t changed since 2001, though the city has tried to increase it.
For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].
