No New Taxes? It Depends on Where You Live

By: - June 12, 2013 12:00 am

After years of budget triage, governors and legislators charted bold paths on taxes.

AL

Approved tax credits—about ,500—to help pay tuition at a private school for families with kids in “failing” schools.

AK

Lowered its oil production tax to become more competitive in attracting oil businesses. Taxes on industry would be reduced by about $500 million a year beginning in 2015.

AZ

Gov. Jan Brewer threatened not to approve the state’s budget unless the legislature agreed to expand Medicaid.

AR

The General Assembly approved a package of bills that reduced personal income, capital gains and manufacturers’ utility bills taxes, at a cost of $140 million a year.

CA

Calif. Gov. Jerry Brown and legislative leaders agreed to shift more money to poor and non-native English speaking students; use conservative budget estimates that minimize projected $4.4 billion in extra revenues.

CO

Approved 25 percent tax on legalized recreational marijuana.

CT

A lower estimate for retiree health care costs, to the tune of $150 million this year, helped close a hole in the budget.

DE

Made permanent some temporary tax increases, including income taxes, which had been approved during the recession.

FL

Agreed to temporarily eliminate a sales tax on manufacturing equipment. Projections are that it could cost cities and counties up to $30 million a year.

GA

The state implemented a $19.9 billion budget that increased spending $600 million, including more money for K-12 schools and health care.

HI

Take a lesson, Washington! Hawaii legislature unanimously approved a $23.5 billion biennial budget with support for infrastructure, education and capital improvements.

ID

The state approved a $20 million cut in the property tax on business equipment and machinery.

IL

A surge in tax revenues allowed Illinois to pay down debts, from $8.5 billion to $5.8 billion.

 IN 

Approved 5 percent cut over two years in personal income tax, half what Republican Gov. Mike Pence sought. All told, a variety of tax cuts totaled about $600 million.

IA

Enacted a property tax cut and a limit on assessment increases on residential and agriculture properties to no more than 3 percent annually.

KS

Considering a plan to increase the state sales tax, reduce popular income tax deductions and decrease the standard deduction, while lowering overall income tax rates. Over five years, the package will increase taxes by $857 million.

 KY

Blue ribbon commission’s 54 tax recommendations that called for $659 million in more revenue gathered dust as the legislature ignored it.

LA

Legislature rejected request by Gov. Bobby Jindal (R) for an elimination of the income tax and a hike in sales taxes.

ME

Lots of bills submitted to change tax laws; pending in legislature, outlook dim.

MD

Approved a major gas tax increase for the first time since 1992. The increase of 20 cents more per gallon by 2017 will finance transportation projects.

MA

A transportation budget that includes a hike in the gas tax by 3 cents a gallon and an increase in tobacco taxes by $1 a pack is pending. Gov. Deval Patrick’s ambitious tax hike proposal was killed.

MI

Revenues are up $483 million more than anticipated, fueling desire to fix roads. The legislature considered a $1.2 billion tax increase for roads, but that effort stalled.

MN

Passed a budget that raises $2 billion in a new revenue by increasing income tax rates on the richest 2 percent, closes corporate tax loopholes, and provides significant property tax relief. Cigarette taxes will more than double, to $2.83 a pack.

MS

Legislature approved a $5.5 billion budget that gives slightly more money to schools, universities, mental health programs and prisons. No raises for state employees.

MO

The Republican-controlled legislature came close to asking voters to raise the sales tax to pay for transportation projects but it died at the end of the session.

MT

The legislature approved a one-time, $47 million cut in individual income taxes, but Gov. Steve Bullock (D) vetoed it. He signed a bill to lower property taxes on business equipment.

NE

Gov. Dave Heineman wanted to eliminate the income tax entirely and make up for the cost with a broader sales tax, but the idea gained no traction in the legislature.

NV

“Temporary” sales and payroll tax increases worth about $620 million, approved during the recession, were allowed to continue two more years.

NH

A plan to increase the gas tax by 12 cents failed. The legislature also rejected an expansion of gambling and plans to build a casino.

NJ

Considering a miles/driven tax instead of a gas tax increase.

NM

Passed legislation to gradually trim the state’s corporate income tax rate from 7.6 percent to 5.9 percent and to phase out “hold harmless” payments the state currently makes to cities and counties.

 NY 

New York approved a $141 billion budget that expanded pre-kindergarten programs and a tourism promotion program to tout state beer, wine and Greek yogurt industries.

NC

Passed $20.6 billion budget with a vague proposal to overhaul taxes, which will have to be worked out later.

ND

Flush with oil revenue, the legislature passed a $1.1 billion tax cut package that includes income and property tax reductions.

OH

Ohio didn’t end up taxing bowling or circus performances, though Gov. John Kasich proposed it, along with other levies on sporting events, theater, arcades and carnivals. The legislature nixed it.

OK

Reduced income tax rate from 5.25 percent to 5 percent on Jan. 1, 2015. A further cut depends on revenue growth.

OR

Legislature stalemated over competing proposals to cut deeper into public employee pensions and to raises taxes on the wealthy.

PA

Gov. Tom Corbett (R) is seeking $1.9 billion in new funding for roads, bridges, mass transit and other transportation.

 RI 

State is trying to close a $30 million budget deficit.

SC

State Supreme Court upheld the state’s 78 sales-tax exemptions, from textbooks to groceries, but it suggested that someone could challenge the state’s $300 sales tax cap on cars.

SD

Gov. Dennis Daugaard (R) called the legislature into special session to deal with cost overruns in the construction of a new State Veterans Home in Hot Springs.

 TN 

Reduced the sales tax on groceries from 5.25 percent to 5 percent, as the second installment of a two-year plan to lower the sales tax.

 TX 

Texas lawmakers took $3.9 billion out of the state’s rainy day fund, including $2 billion to finance water projects, pending voter approval.

UT

Legislature shot down a plan to raise taxes—from 5 percent to 6 percent—on the rich and oil/gas companies in order to give $113.8 million more to education.

 VT 

Raised gas taxes by 5.9 cents a gallon, on top of the existing 19-cents per gallon tax.

VA

Virginia’s gas tax, which had not been changed since 1987, is no more. Replacing it is a new 3.5 percent wholesale tax on motor fuels. The sales tax is also going up. Proceeds will go to roads and transportation.

WA

Legislature called into special session to deal with budget. Gov. Jay Inslee wants a 10-cent per gallon gas tax increase to finance road and bridge projects. A Washington bridge recently collapsed.

WV

A blue ribbon panel says the state needs an additional $1 billion-plus for roads each year. How to pay for it? Proposals range from a 1 percent increase in sales taxes to a $200 registration fee for alternative-fuel vehicles.

WI

Budget projections show the state will take in about $500 million more than expected in the next two years; leading to calls for a tax cut and more money for the schools.

WY

Revenues are running ahead of projections. Republican Gov. Matt Mead’s office says the latest Wyoming figures support his position that the state probably won’t have to cut agency budgets in the coming year. The state is currently operating on a two-year $3.2 billion general funds budget.

Return to top

Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. We ask that you edit only for style or to shorten, provide proper attribution and link to our website. AP and Getty images may not be republished. Please see our republishing guidelines for use of any other photos and graphics.

Elaine S. Povich
Elaine S. Povich

Elaine S. Povich covers education and consumer affairs for Stateline. Povich has reported for Newsday, the Chicago Tribune and United Press International.

Stateline is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.

MORE FROM AUTHOR