The New York Court of Appeals in June 2014 overturned New York City's highly publicized soda ban that limited purchases of fountain drinks to 16-ounce cups in an attempt to reduce constituents' consumption of soda.  Most states have lieved taxes on soda purchase intending to influence consumer choices, promote public health and generate revenue. 

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Low-income workers in Ohio will get additional tax relief as the result of changes made in June to the state’s biennial budget. Following last year’s creation of an earned income tax credit, the legislature chose to expand it — from 5 percent of the federal credit to 10 percent.
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Most states in the region have a private license system for the sale of alcoholic beverages. Private enterprises, including liquor and grocery stores, apply for a license to sell alcohol. The licenses are granted at the discretion of the licensing authority in the state.
Three states in the region — Iowa, Michigan and Ohio — are called control states. None of these states operates retail liquor stores, but they do control the sale of distilled spirits at the wholesale level.

For every two packs of cigarettes sold in New York, at least one has been illegally smuggled into the state. That’s according to research by the Mackinac Center for Public Policy, which also reports that cigarette smuggling cost states an estimated $5.5 billion in lost revenue in 2012. “The significance of the problem cannot be overstated in high-tax states,” said Michael LaFaive, director of the Morey Fiscal Policy Initiative at the Mackinac Center.

Taxpayers X and Y live in the same state and have the same income but Taxpayer X earns all of her income in-state while Taxpayer Y earns all of her income out-of-state.  Taxpayer Y pays more in taxes because she pays income taxes out-of-state and pays a county income tax in her home state.  Unfair?  (Not necessarily.  After all, Taxpayer Y receives government services in the county where she resides.)  Unconstitutional?  The Supreme Court will decide.    

In...

The non-partisan Tax Foundation has calculated the tax burdens of the citizens of each state while adjusting for the fact that many state taxes are exported to residents of other states.

For 2013, 7 states have their own inheritance taxes and 14 states plus DC have their own estate taxes. Check out this link for a breakdown of estate and inheritance taxes for your state.

Forty-five states levy a general statewide sales tax, with rates ranging from 2.9 cents to 7.5 cents per dollar. During the past decade, sales tax rates have remained relatively stable, with few states making significant changes to them. While rates have remained stable, depressed consumer spending has led to declines in total sales tax revenue and many states continue to struggle to get back to pre-recessionary levels of revenue.

In a legal setback for states seeking to collect taxes from Internet sales, the Illinois Supreme Court in October struck down the legislature’s 2011 Main Street Fairness Act. According to USA Today, the decision marks the first time a state’s Internet sales tax law has been invalidated. Illinois’ measure is known as an “Amazon” law, named after the online retailer.

Stateline Midwest ~ July/August 2013

The start of new fiscal years across the Midwest is also marking a new era in tax policy for many states as the result of actions taken during the 2013 legislative sessions.

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