A Bipartisan Bill For Small Employers’ Retirement Plans
Senate Democrat and Republican propose the Retirement Investment in Small Employers Act. Introduced last week by Sens. Maggie Hassan (D-NH) and Ted Budd (R-NC), the bill would expand a tax credit for small businesses with less than 10 employees to cover the start-up and administrative costs of a defined contribution plan. It would raise the minimum tax credit threshold from $500 to $2,500. The bill was referred to the Senate Finance Committee.
Washington’s capital gains tax revenue fell in its second year. Tax Notes reports (paywall) the state collected $433 million in capital gains tax revenue, far less than the $786 million collected the first year the tax was in effect. The reason for the revenue drop isn’t clear, but illustrates the volatility of the tax, a 7 percent levy on the amount of long-term capital gains exceeding $250,000 (or $263,000 in 2023).
Vermont’s tax revenues are coming in higher than expected. The state’s General Fund had $100 million more at the end of April than what state officials anticipated. State legislators plan to use $25 million of the extra revenue to reduce property taxes. The bump in revenue follows income tax filings in April. Officials say it’s too soon to tell whether April’s solar eclipse tourism will affect meals and rooms tax revenue collections.
Property tax relief on Nebraska’s horizon? Republican Gov. Jim Pillen said last week he hopes to cut state spending to help reduce property taxes by 40 percent, or $2 billion, over the next several years. Among his efforts, his administration plans to review 120 sales tax exemptions to identify ones that could be eliminated. He also wants to undo unfunded mandates in county and city governments.
Illinois Senate approves a state budget. The chamber passed a $53.1 billion state budget on Sunday night. The state House will vote on the plan this week. The budget would collect between $840 million to $870 million in tax increases, including a staggered increase to the sports betting tax and an increase in the video gaming tax . The state’s sales tax on groceries would be eliminated, but not until Jan. 1, 2026. Local governments would, with voter approval, be able to levy their own grocery taxes of up to 1 percent.
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