Tax and Budget

Forty-five states levy a general statewide sales tax, with rates ranging from 2.9 to 7.5 cents $1 as of Jan. 1, 2015. Over the past decade, sales tax rates have remained relatively stable, with few states making significant changes. Among the states that levy a sales tax, the average rate was 5.64 percent in 2015, up from 5.35 percent in 2005.

Forty-five states levy a general statewide sales tax, with rates ranging from 2.9 to 7.5 cents $1 as of Jan. 1, 2015. Over the past decade, sales tax rates have remained relatively stable, with few states making significant changes. Among the states that levy a sales tax, the average rate was 5.64 percent in 2015, up from 5.35 percent in 2005.

According to a recent report released by the Census Bureau, per pupil spending for the U.S. in fiscal year 2013 was $10,700 – less than 1 percent more than in 2012. New York spent the most per student - $19,818 – followed by Alaska ($18,175), the District of Columbia ($17,953), New Jersey ($17,572) and Connecticut ($16,631). Utah spent the least per pupil – $6,555 – followed by Idaho ($6,791), Arizona ($7,208), Oklahoma ($7,672) and Mississippi ($8,130).

CSG South

A vital tool for policymakers across the region, Comparative Data Reports (CDRs) offer a snapshot of conditions on a number of issues. Published annually, the CDRs track a multitude of revenue sources, appropriations levels, and performance measures in Southern states, and provide a useful tool to state government officials and staff. CDRs are available for adult correctional systems, comparative revenues and revenue forecasts, education, Medicaid, and transportation.

In 2014 slightly less than five percent of state tax revenue, or $41.5 billion, came from fuel taxes according to the U.S. Census Bureau’s 2014 Annual Survey of State Government Tax Collections. Just 1.3 percent of Alaska’s tax revenue came from fuel taxes – the lowest percentage among states – compared to 8.6 percent in South Dakota – the highest among states.

In a 5-4 decision in Comptroller v. Wynne the Supreme Court held that Maryland’s failure to offer residents a full credit against income taxes paid to other states is unconstitutional. The State and Local Legal Center (SLLC)/International Municipal Lawyers Association (IMLA) filed an amicus brief in support of Maryland. 

Maryland taxes residents’ income earned in- and out-of-state. If Maryland residents pay income tax to another state for income earned there, Maryland allows them a credit against Maryland’s “state” tax but not its “county” tax. Maryland also taxes nonresident income earned in the state. Nonresidents pay Maryland “state” tax and a “special nonresident tax” equivalent to Maryland’s lowest “county” tax.

By Katherine Barrett and Richard Greene, CSG Senior Fellows

At least a dozen states—including Arizona, Florida, New York, Ohio and Wisconsin—have plans to cut taxes in the coming year. But statistics suggest that lowering the tax burden doesn’t always translate into economic activity.

CSG Midwest
Illinois lawmakers are hailing a new set of safeguards that they say will improve how the state oversees grants and will protect against fraud and abuse. The Grant Accountability and Transparency Act (HB 2747) was signed into law last year. The plan for implementing this act was announced in March. 
 
 

There is no way to know for sure why Justice Kennedy wrote a concurring opinion in Direct Marketing Association v. Brohl stating that the “legal system should find an appropriate case for this Court to reexamine Quill.”  But even if you don’t read the State and Local Legal Center (SLLC) amicus brief’s criticism of ...

CSG South

In July 2008, the price of oil per barrel reached an astronomical $147, and the price of gasoline in several states exceeded $5 per gallon; just six months earlier in January 2008, the price per barrel had hovered around $90. Fast forward to the end of 2008, and the price had plunged to under $35 a barrel, when the United States and world economies were in the throes of the Great Recession, the worst economic downturn to sweep over the globe since the Great Depression. Reviewing the price per barrel in the last six months reveals similar trends: in June 2014, oil was around $115 per barrel and six months later, in early January 2015, it had dropped precipitously to below $50 per barrel. Interestingly, the four years with the highest average crude oil prices since the 1860s were 2008, 2011, 2012 and 2013; hence, the steep drop in oil prices is not a “new normal” but a return to more historic price levels. This SLC Regional Resource describes recent trends in oil prices, the reasons for their fluctuations, and the affect they have on individual states and industries in the region.

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