A 2014 report by the Williams Institute at the UCLA School of Law predicts that the legalization of same-sex marriage could have a combined economic impact across all states of $2.6 billion during the first three years, primarily due to increased spending on weddings by same-sex resident couples and their out-of-state guests. In addition, the report estimates that legalization will boost state and local sales tax revenue by $184.7 million and support more than 13,000 jobs. The potential economic and fiscal impact varies across states.

As consumers continue to use the Internet to acquire goods, members of Congress are attempting to solve a quirk in tax law that is preventing states from collecting potential sales tax revenue. Bills in both the House and Senate aim to give states the authority to require out-of-state businesses selling online or through catalogs to collect taxes already owed under state law the same way local businesses do. Similar legislation failed to reach President Obama’s desk last Congress, but proponents are moving swiftly to ensure the bills remain at the top of the Congressional agenda.

Economics webcast

In the aftermath of the Great Recession, an increasing number of states, including several in the SLC region, are focused on increasing accountability and transparency in the disbursement of taxpayer dollars. Performance-based budgeting—which focuses on efficiency and effectiveness in outcomes—has emerged as a viable tool for states looking for an alternative to routinely funding government operations on a pro forma basis. This webinar provided an overview of performance-based budgeting and highlighted measures initiated in Oklahoma and Mississippi to implement this spending strategy.

 

CSG Midwest
With the adoption of Public Act 239 in the summer of 1972, lawmakers in Michigan sought to generate new revenues in support of the state’s public education system by embracing a mechanism with a storied past in American history — the public lottery. In doing so, the Wolverine State became the first in the Midwest to establish a modern state lottery, following the lead of a handful of northeastern states and helping to usher in a new wave of interest in state-sanctioned gambling across the entire country.
CSG Midwest
In 1970, when they gathered to create a new constitution for Illinois, convention delegates decided to take on a fiscal problem that had been worsening for years. Pension obligations were not being met, and as a result, the unfunded liabilities of governments in Illinois were rising at an alarming rate.
The delegates' response: Establish a new constitutional clause that would not only protect the pensions of public employers, but presumably convince government leaders to meet the funding obligations.
Forty-five years later, this 40-word clause — which says in part that accrued pension benefits “shall not be diminished or impaired” — looms larger than ever in Illinois politics. In May, the state Supreme Court struck down a 2013 law designed to shore up the nation's worst-funded pension system by providing savings of more than $100 billion over the next 30 years.

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).

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.

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