In 2021, the 11 states that allowed legal sales within their borders raised nearly $3 billion in cannabis excise tax revenue, an increase of 33 percent compared to a year earlier. While the tax remains a small part of state budgets, it’s beginning to eclipse other “sin taxes” that states have long had on the books.
State Policy
State taxes pay for essential public services, from education to health care. But the ideal design of a tax system is complicated. ITEP’s state policy resources offer insights into central issues, including the impact of state tax systems on individuals, families, and businesses. Its work also analyzes the sustainability of revenue sources over time.
ITEP's State Policy Research Priorities
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blog April 19, 2022 Cannabis Taxes Outraised Alcohol by 20 Percent in States with Legal Sales Last Year
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blog April 13, 2022 State Rundown 4/13: Recent State Budgets Prove Not All Tax Cuts are the Same
Two prominent blue states made headlines this past week when they passed budget agreements that include relief for taxpayers, and fortunately, the budget plans don’t include costly tax cuts that primarily benefit the wealthy…
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blog April 6, 2022 State Rundown 4/6: Late-Session Surprises Pt. 2
Last week we highlighted how several states were pushing through regressive tax cuts as their legislative sessions are coming to a close. Well, this week many of those same states took further actions on those bills and it’s safe to say we’re even less impressed than before…
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blog March 31, 2022 Racial Discrimination in Home Appraisals Is a Problem That’s Now Getting Federal Attention
With both assessments and appraisals being unfair, homeowners of color are stuck between a rock and a hard place when it comes to determining the worth of what is, for most homeowners, their most valuable asset.
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blog March 30, 2022 State Rundown 3/30: Late-Session Surprises Leave Us Unimpressed
Several states have dropped a few late-session surprises, and from the looks of it, they’re not the good kind…
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blog March 23, 2022 State Rundown 3/23: Spring Brings More Tax Happenings
Spring is around the corner and like those pesky allergies that come along with it, equally pesky tax proposals continue to pop up in states across the U.S….
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ITEP Work in Action March 23, 2022 New Hampshire Fiscal Policy Institute: Expansions of the Earned Income Tax Credit and Child Tax Credit in New Hampshire
Prior to the temporary expansions, nearly one in five likely eligible Granite Staters did not claim the EITC, and approximately 7,745 children were estimated to be eligible for the CTC… -
blog March 17, 2022 Arizona Ruling Preserves High-Income Interests Over Education Investments, Popular Vote
An Arizona court decision delivered an unfortunate blow to voters and those in the state who favor a progressive, adequate tax system that can fund critical priorities including K-12 education.
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blog March 16, 2022 State Rundown 3/16: The Scramble to Curb Rising Gas Prices is On
Rising gas prices have lawmakers around the country searching for ways to ease the pressure on consumers and almost half the states are considering reducing or temporarily repealing their gas tax, but another idea is taking hold…
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ITEP Work in Action March 14, 2022 Georgia Budget and Policy Institute: House Proposes Massive Tax Cuts for Wealthiest, Slashing State Revenues
Members of the Georgia General Assembly are considering legislation that would fundamentally change the structure of the tax code and result in disproportionately large tax cuts for the wealthiest while… -
ITEP Work in Action March 10, 2022 California Budget & Policy Center: California’s Tax & Revenue System Isn’t Fair for All
Californians need quality public health and schools, access to affordable housing and clean water, and safe roads and neighborhoods along with many more services to live and thrive – no… -
blog March 9, 2022 State Rundown 3/9: One State Stands Out Amid the Avalanche of Tax Cuts
The avalanche of regressive tax-cut proposals coming out of state legislatures has not slowed over the course of the winter months, but one state has provided a shot of hope to advocates of tax equity…
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blog March 9, 2022 A Better Alternative: New Mexico Prioritizes Targeted, Temporary Tax Cuts
New Mexico stands in stark contrast to the many examples of poorly targeted tax-cut proposals currently being considered around the country.
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blog March 2, 2022 State Rundown 3/2: State Tax News When You Need It
ITEP is happy to announce the launch of our new State Tax Watch page, where you can find out about the most up-to-date tax proposals and permanent legislative changes happening across the country…
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blog March 1, 2022 Taxes Should be Part of the State of the Union Agenda
President Biden should elevate his tax and revenue proposals which remain essential if we are to pay for environmental restoration, health priorities and peacekeeping, the front-burner items that may dominate the speech.
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blog February 23, 2022 State Rundown 2/23: Temporary Surplus, Permanent Cuts
Several state legislatures are continuing to push ahead this year with significant tax cut packages that are regressive and would dramatically reduce revenues and leave states in a bad position should they experience another unexpected economic shock…
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ITEP Work in Action February 23, 2022 New Jersey Policy Perspective: Making New Jersey Affordable for Families – The Case for a State-Level Child Tax Credit
A state-level child tax credit would recognize the unique costs of raising children and the support that most families need to care for their kids and set them up for… -
blog February 16, 2022 State Rundown 2/16: Spending Priorities Emerge as the Votes Are Counted
State lawmakers have been busy working out deals and negotiating how best to use excess revenues, and as the votes are beginning to come in, spending priorities are becoming clearer…
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ITEP Work in Action February 15, 2022 West Virginia Center on Budget and Policy: House Personal Income Tax Cut Plan Largely Benefits Wealthy, Not Fiscally Sustainable
The West Virginia Legislature has introduced a bill to cut and eventually eliminate the state’s personal income tax. The House Finance Committee voted to advance that bill to the House… -
ITEP Work in Action February 14, 2022 Oklahoma Policy Institute: Strengthening the Grocery Tax Credit Would Provide Fiscally Smart Tax Relief to Working Oklahomans
Oklahoma can effectively eliminate the state and local sales tax on groceries for most low-income families by strengthening the Sales Tax Relief Credit. At a time when many Oklahomans are… -
blog February 10, 2022 State Rundown 2/10: Dems Also Set Sights on Tax Cuts
While record state revenue surpluses have led to big pushes in red states to make unnecessary permanent income and corporate tax cuts, Democrats are also getting in on the tax-cut mania…
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ITEP Work in Action February 10, 2022 Common Good Iowa: New Income Tax Cuts – a Recipe for Disaster and Inequity
Iowa lawmakers have repeatedly cut taxes over the last three decades in ways that provide the greatest benefits to the highest-income taxpayers while ratcheting down investments that historically made the… -
ITEP Work in Action February 7, 2022 Idaho Center for Fiscal Policy: HB 436 Tax Cuts Benefit Wealthy Idahoans
The tax cuts proposed in HB 436 would benefit wealthy Idahoans the most. The bill would also collapse the state’s five tax brackets to four, and would lower the income… -
ITEP Work in Action February 7, 2022 Idaho Center for Fiscal Policy: Idaho Families Would Benefit From Move to Include More Children in State’s Child Tax Credit
From housing to child care, hard-working Idaho families face high costs in our growing state. Since 2018, Idaho’s tax code has supported families through the state Child Tax Credit (CTC).… -
ITEP Work in Action February 7, 2022 Hawai’i Budget & Policy Center: Expanding Economic Opportunity with the Hawai’i EITC
Hawai’i’s working families continue to struggle with the nation’s highest gap between median earnings and the cost of living, and this difficult reality has only been made harsher by the…