State Tax Watch 2024
Updated April 9, 2024
In 2024, state lawmakers have a choice: advance tax policy that improves equity and helps communities thrive, or push tax policies that disproportionately benefit the wealthy, drain funding for critical public services, and make it harder for low-income and working families to get ahead.
Despite worsening state fiscal conditions, we expect that many state policymakers will continue to push for deep tax cuts. On the other hand, we expect many others to continue creating and expanding refundable tax credits that can help low- and moderate-income families. And we expect some to advance bold new revenue proposals that could raise new money for the public good in a way that reflects residents’ ability to pay.
ITEP is tracking tax discussions in legislatures across the country and using our unique data capacity to analyze the revenue, distributional, and racial and ethnic impacts of many of these tax proposals. This page is updated with the latest news and movement from each state.
To learn more about state tax proposals, hover over each state below.
Below are summaries of tax legislation discussed or approved in each state. Click on your state to jump to the summary.
You can also get weekly updates by signing up for our State Rundown.
Alabama
Alabama passed a universal school voucher program. Students will receive a $7,000 education savings account that will be open to students for the 2027 school year and can be used for private school tuition, homeschool, and other educational costs.
Otherwise, the state has announced that the grocery tax rate will remain at 3 percent in 2024. The rate will drop to 2 percent when certain growth metrics are met within the state's Education Trust Fund.
Alaska
No major tax proposals to date. Last year lawmakers proposed a bill to create a 2 percent flat income tax on those earning over $200,000 (and just $20 for those earning less). It is still in committee.
Arizona
Gov. Hobbs has announced plans to pare back the state's school voucher program and increase the percentage of land trust earnings to be used on education (via an extension of Prop 123). This comes after the state's nonpartisan budget committee found Arizona will face a $1.7 billion shortfall, mainly due to deep cuts to the state's income tax and a school voucher program that has exceeded cost estimates.
Arkansas
Gov. Sanders intends to push for additional personal income tax cuts either during the 2024 regular session or an earlier special session. If approved, this would be Arkansas' fourth income tax cut in less than two years.
California
California is facing a significant budget deficit. There are not yet major proposals for new revenue, although without new revenue there will certainly be cuts to public services. Meanwhile, anti-tax activists have created a ballot initiative designed to make it more difficult to create or raise a tax and limit the ability of localities to collect special taxes.
Colorado
Gov. Polis noted that "taxes are simply too high" in his 2024 State of the State address, with no recognition of their vital role in funding key priorities. Whether this will lead to another permanent income tax rate cut or a temporary income tax cut (as a TABOR refund mechanism) remains to be seen.
Connecticut
After cutting income tax rates for low- and middle-income households and increasing the state's Earned Income Tax Credit in 2023, Gov. Lamont has since backed off plans for further cuts. State revenue reports show declining tax collections.
However, a push for a state child tax credit is gaining steam. The credit would provide $600 a year per child and is projected to impact 75 percent of families in the state. Lawmakers are also discussing policies to raise revenue, including a surcharge on capital gains income and a higher top income tax rate.
D.C.
Mayor Bowser released her 2025 budget proposal which includes freezing the scheduled Earned Income Tax Credit increase at 70 percent of the federal amount; an increase to the sales tax rate to 6.5 percent in fiscal year 2026 and 7 percent in fiscal year 2027; and an electric vehicle tax of up to 3 percent, among other things.
The DC Tax Revision Commission is still working through its comprehensive recommendations. Items initially expected to be considered include creating a state-level Child Tax Credit, enhancing the state's Earned Income Tax Credit, a graduated tax on the highest-value homes, expanding the property tax circuit breaker, closing tax loopholes, and modernizing corporate taxes.
Delaware
Republican lawmakers are pushing several tax proposals this year, ranging from business tax credits to a cut to the state’s existing Real Estate Transfer tax.
Florida
Lawmakers are considering an additional homestead exemption on school levies on the second $25,000 of property values worth more than $50,000. Alongside the state's universal voucher program that was passed in 2023, this has the potential to further deteriorate funding for public education. Lawmakers are also advancing legislation that would make it more difficult for local governments to raise property taxes by imposing a supermajority requirement. And a bill to study replacing property taxes with consumption taxes is also being considered.
Georgia
Lawmakers sent multiple property tax cut bills to the desk of Gov. Kemp. One measure would cap the growth in value of a home, as assessed for property taxes, to the rate of inflation. Municipalities will have a one-time opportunity to opt out of this mandate and can also increase sales taxes by a penny to replace lost property tax revenue. The second measure would double the state’s homestead exemption from $2,000 to $4,000. Additionally, a pair of income tax cut bills have been passed and now sit on the governor’s desk. If signed, as expected, HB 1015 will accelerate the planned income tax cut for individuals to 5.39 percent and HB 1023 will cut the corporate income tax rate in line with the personal income tax cuts (which are scheduled to drop 0.1 percent a year until reaching 4.99 percent, if revenues hold).
Meanwhile, the state recently passed a fetal personhood bill that has resulted in an additional $100 million in claimed dependent exemptions. And lawmakers were unable to come to a consensus on capping the state’s billion-dollar film credit, effectively killing the effort this session.
Hawaii
Gov. Green proposed a higher state conveyance tax on sales of luxury homes over $2 million and an increase to the state’s cigarette tax from $3.20 to $3.60 per pack. He’s also proposed adjusting the state’s standard deductions, tax brackets, and personal exemptions for inflation, and an increase to the percentage of expenses covered by the Child and Dependent Care Tax Credit.
Lawmakers appear likely to pass a $25 “tourist tax” on visitors to fund climate change mitigation efforts. And pushes to eliminate the state's capital gains loophole and create a state Child Tax Credit remain underway. Lawmakers are also considering broader exemptions to the state's estate tax.
Idaho
Gov. Little signed a bill into law that will cut the state’s individual and corporate income tax rates from 5.8 percent to 5.695 percent and move sales tax revenues to fund schools and other annual bonds in the case of an economic downturn.
Private school tax credits were also a priority for Gov. Little and legislative Republicans this session, but the state's voucher bill was ultimately defeated.
Illinois
Gov. Pritzker released his annual budget which includes a number of tax policy proposals. Some are intended to soften the blow of the state’s projected $900 million shortfall, such as the increase to the sports wagering tax from 15 to 35 percent, continued limit on the Corporate Net Operating Loss Deduction, and the cap on the sales tax retailers’ discount. Gov. Pritzker is also proposing elimination of the state’s 1 percent sales tax on groceries and the creation of a small credit for children (essentially a targeted boost to the state’s EITC) geared toward families with young children under three.
Meanwhile, advocates and lawmakers continue to work to enact a Child Tax Credit. One proposal under consideration would create a $300 per child credit for single households under $50,000 and married households under $75,000. Lawmakers are also considering changes to the state’s estate tax to accommodate family farms who pay the tax when passing land down to family members.
Following a legal challenge, the mansion tax proposal in Chicago appeared on the ballot but came up short. The proposal would have decreased the real estate transfer tax on properties sold for under $1 million and increase it on properties sold for over $1 million.
Indiana
Despite a prior focus on reducing or eliminating Indiana's personal income tax, a state and local tax task force has been encouraged to address rising property taxes as a priority.
Iowa
Iowa's income tax is currently flattening and will be reduced to a flat rate of 3.9 percent by 2025. The House Appropriations Committee chair has expressed reservations about further reducing the income tax rate. However, two income tax cut bills have made their way through the legislature: one would bring the rate to 3.5 percent by 2025, and the second would bring the rate to 3.65 percent by 2027 and continue to phase out the income tax entirely with one-time money from the Taxpayer Relief Fund. Earlier this year, Gov. Reynolds proposed reducing the rate to 3.5 percent. the House and Senate released their own respective budget targets for Fiscal Year 2025. The $82 million difference in the two chambers’ plans indicates that a final tax cut compromise has not been finalized.
A proposed constitutional amendment that would require a two-thirds majority vote to raise taxes passed the House. The legislation would also constitutionally mandate a flat income tax. Meanwhile, lawmakers are looking to enact a 25 percent excise tax on consumable hemp products.
Kansas
Gov. Kelly vetoed the package of tax cuts approved by the Republican-led Legislature. Lawmakers attempted but failed to override that veto. The package included a 5.25 percent flat personal income tax, a full Social Security exemption, a $100,000 homestead exemption, and inflationary increases to the personal exemption and standard deduction, among other things. The deeply regressive plan would have cost the state $1.6 billion over 3 years.
Multiple separate tax plans have also been introduced:
• The latest proposal, unanimously passed by the House, would eliminate the bottom tax bracket of 3.1 percent, reduce the second- and third-income tax brackets by .05 percent, phase-out income taxes on Social Security income, and cut property taxes.
• A separate flat tax plan in the Senate would create a flat rate of 5.7 percent in 2024 that would drop to 5.45 percent by 2029. The plan would also increase personal exemptions and exempt additional Social Security income from tax. Even with an increase to the personal exemption, this flat tax proposal would cost $650 million a year when fully phased in and give 40 percent of its benefits to households in the top 20 percent of earners.
• An early bipartisan tax plan, supported by Gov. Kelly, would exempt all Social Security benefits from the state income tax, increase the homestead exemption to the first $100,000 of property value, and immediately eliminate the state's grocery tax that is currently phasing out. Rather than instituting a flat tax, this plan would increase the state’s standard deduction and increase the state's nonrefundable child care credit (or child and dependent care credit), among other changes.
Kentucky
The Senate advanced a constitutional amendment that would freeze property valuations for those 65 and older regardless of income or need. It next heads to the House and would require a ballot initiative to become law. Also under consideration is a bipartisan push to exempt diaper products from the sales tax base.
Louisiana
Gov. Landry released tax recommendations from his transition committee on economic development and fiscal policy. They include the extreme measures of phasing out the state’s personal and corporate income taxes and corporate franchise tax, reducing severance taxes on oil and gas, and eliminating the inventory tax and inventory tax credit.
Gov. Landry also rolled back the job creation requirement for the state’s Industrial Tax Exemption Program, which allows companies to receive large local property tax exemptions for industrial projects. He removed the requirement that the exemptions receive approval from local taxing authorities who would be directly impacted by the exemption.
The 2024 legislative session is a non-fiscal session in Louisiana. The state is expected to take up issues of taxation more broadly in 2025. However, lawmakers are considering a bill that would create education savings accounts that would use public dollars to subsidize private school tuition.
Maine
Lawmakers seem likely to focus on corporate tax transparency and property tax issues. Last year they made the state's Dependent Exemption Tax Credit (or CTC) refundable and enacted a paid family medical leave program.
Maryland
Maryland lawmakers reached a budget deal that will raise about $252 million. The package includes a new statewide fee for ride-hailing services, increased vehicle registration fees, a surcharge on zero-emission electric vehicles, and an increase to tobacco taxes.
The deal comes after the Senate rejected the House's budget that would have raised about $1.2 billion to address the state's budget shortfall. That proposal included worldwide combined reporting for corporate taxes, new taxes, increased fees and tolls, and legalizing internet gambling.
Massachusetts
Lawmakers are discussing a plan to allow cities and towns to enact local "mansion" taxes on pricey real estate transactions.
Meanwhile, the legislature is focused on the implementation of the Fair Share Amendment, the successful 2022 ballot initiative that creates a 4 percent surcharge on income over $1 million to fund education and transportation projects, and other recent changes under 2023 legislation.
Lawmakers have also proposed legislation that would enact an annual excise tax of 2.5 percent on private collegiate institutions with endowments larger than $1 billion.
Michigan
Gov. Whitmer has called on lawmakers to provide universal pre-K and make community college free to all high school graduates, alongside a handful of credit and rebate programs. No revenue raisers or pay-fors have been announced.
Meanwhile, the state's temporary income tax cut will expire after this year. The Court of Appeals unanimously ruled that the personal rate reduction for 2023 was intended to last for only one year after the rate was reduced from 4.25 percent to 4.05 percent when the state’s budget surplus exceeded a certain level when measured against inflation. However, state lawmakers have asked the state’s Supreme Court to reverse the appeals court’s ruling that the inflation-based income tax cut was only temporary.
Minnesota
Minnesota Republicans have expressed interest in both income tax cuts and additional cuts for Social Security income. Meanwhile, the state legislature could take up Worldwide Combined Reporting which, if passed, would make Minnesota the first state in the nation to enact the corporate income tax policy, a move that would all but end the accounting games that multinational corporations use to pretend that their profits are being generated in tax haven countries.
The city of St. Paul will vote on a property tax increase this November to create a childcare subsidy fund.
Mississippi
Revenue estimates show stagnating collections in Mississippi, due in part to the state's recently passed flat tax. In a rare gubernatorial move, Gov. Reeves condemned the revenue forecast due to its inability to make room for additional personal income tax cuts.
Reeves reemphasized this commitment in his budget plan where he calls for an end to the state’s personal income tax by 2029.
Missouri
Lawmakers agreed to increase a tax credit for donations to private and religious schools. And Gov. Parson announced support for several small bipartisan tax credits aimed at reducing the cost of child care (each initially capped at $20 million). They would support donations to child care facilities, employer spending on child care, and child care facility employer withholding tax and a percentage of capital expenditures.
The House passed a bill that would fully eliminate the state's corporate income tax, currently at 4 percent, by 2028. Other issues that continue to be discussed are grocery tax elimination, reductions in personal property taxes for vehicles, and expansion of tax benefits for seniors. The state is also considering pre-empting local income taxes and property tax assessments in Jackson County. Additionally, the House advanced a measure to eliminate the state’s corporate income and franchise taxes over time.
A gubernatorial candidate has proposed eliminating Missouri’s personal income tax, as well as rolling back a gas tax hike. His advisory committee draws heavily from those behind the disastrous “Kansas experiment” that led to a collapse in state services and revenues and was eventually rolled back by a bipartisan group of lawmakers.
Montana
Gov. Gianforte has made appointments to a task force that will consider recommendations for cutting property taxes.
Nebraska
Legislators have agreed to not raise the sales tax rate this year, finally putting to rest Gov. Pillen’s proposed means of funding property tax cuts, which would have amounted to a regressive tax shift. Lawmakers may still fund those cuts by pausing previously enacted income tax cuts, but are running out of time to reach a deal this session.
This follows multiple attempts by lawmakers to cut property taxes by $1 billion. Gov. Pillen previously pushed for a 40 percent reduction in local property taxes, but backed off of his proposal to hike Nebraska's regressive sales tax to the highest rate in the nation. Lawmakers are also considering creating a film tax credit and eliminating the state's inheritance tax.
Meanwhile, voters will get a chance in November to repeal the state's new tax credit that syphons public funds into private schools.
Nevada
Nevada's legislature is not in session this year but discussions are ongoing about how the state can raise needed revenue within (or by overcoming) its strict constitutional limitations, and how the state's highly regressive tax code might be improved.
Meanwhile, the state could face a big revenue shortfall for roads and bridges if a policy allowing gas taxes to grow in pace with construction inflation expires as scheduled at the end of 2026.
New Hampshire
The House passed a bill to legalize cannabis and levy a 10 percent tax on monthly sales. The proposal now heads to the Senate.
Meanwhile, state courts continue to litigate a recent court decision that found the state is sending too little funds to its public schools and is violating the constitution, which would require the state to spend an additional $3,256 per student each year, or about $537 million per year. If the ruling stands, legislators would need to determine how to meet the new funding requirements.
New Jersey
Gov. Phil Murphy signed bills that would increase the state gas tax 1.9 cents per gallon for 5 years and authorize a $250 fee on electric vehicle owners. The package of bills are a part of an eight-year Transportation Trust Fund reauthorization bill, which is mandated by 2016 law that requires a "steady stream of revenue" to support the program.
Gov. Murphy announced his budget proposal. It includes a corporate business tax of 11.5 percent on companies with more than $10 million in profits. The plan comes just months after a similar business surcharge expired at the end of 2023. The revenue will help fund the state's transit system which has announced plans to raise fares by 15 percent on July 1. Also included are continued funds for the state's property tax ANCHOR program and property tax cuts for seniors, another payment for public-worker pensions, an increase to the state's school aid formula, and an end to the state's sales tax holiday. Murphy's budget also maintains the state's EITC, CTC, and CDCC.
New Mexico
Gov. Lujan Grisham approved the legislature's omnibus tax bill which includes progressive provisions to tax the wealthy. The bill will, among other things, restructure personal income tax brackets, place additional limitations on the state’s capital gains deduction, and replace the two-tiered corporate income tax rate with the single, higher rate. She also signed a workforce guaranteed income pilot program into law that will provide monthly payments of $1,000 for up to a year to New Mexicans who attend qualifying workforce training programs.
Lawmakers have also made increasing the alcohol tax by 25 cents per drink a priority in 2024.
New York
The House and Senate each released budget proposals that include small 0.5-percent temporary income tax increases on households with incomes over $5 million per year. Tax credits to promote affordable housing are another topic that the two houses and governor have yet to agree on. The Senate’s proposal includes a Working Families Tax Credit that would replace the state’s existing Empire State Child Credit and Earned Income Credit with a combined credit meant to hold current recipients harmless and grow over time to boost family incomes and reduce child poverty.
Despite a significant revenue shortfall and widespread recognition that major housing investments are needed, Gov. Hochul has adopted a staunch anti-tax tone and has referred to the 0.5-percent tax on income over $5 million a year as a “nonstarter.”
Meanwhile, a lawsuit seeking to rectify property tax assessment inequities will proceed after a recent court ruling. The plaintiffs hope to force reform to a system that has resulted in higher property taxes on families of color and low-income households for decades.
North Carolina
While the state is scheduled to reduce its flat income tax to 3.99 percent by 2025, the tax rate could reach as low as 2.49 percent if annual revenue triggers are reached over the next decade.
North Dakota
While the legislature is not in session this year, Gov. Burgum has called on lawmakers to eliminate the state’s income tax, echoing his calls from last year when he urged lawmakers to expand income tax cuts costing $358 million that were already signed into law. He also called for property tax cuts.
Ohio
Discussions of property tax cuts and reforms are expected to continue as lawmakers look to address increased property values. A push for improvements to and the enactment of tax credits for low- and middle-income families - like a refundable EITC, state-level Child Tax Credit and a property tax circuit breaker - continue to be discussed as important reforms that would strengthen families and reduce poverty.
Lawmakers have also proposed fully eliminating the state’s income tax and commercial activities tax.
Oklahoma
Governor Stitt signed a measure eliminating the state’s sales tax on groceries. The measure, a cut for all Oklahomans but one that will be felt most dramatically by families with modest incomes, will result in an estimated $411 million in state revenue loss.
This follows the governor’s renewed push for an income tax cut this session and a call to eliminate Oklahoma's income tax over time. Gov. Stitt held a pre-session special session (a week before the state’s standard legislative kickoff) that quickly adjourned with the House passing a 0.25 percent income tax cut and the Senate opting to not vote on any legislation.
Meanwhile, the state has a pending court proceeding regarding the treaties exempting tribal citizens from the state income tax.
Oregon
As Oregon heads into its short legislative session, an initiative creating a constitutional amendment that would freeze property taxes for all seniors, regardless of income, has been filed and is currently collecting signatures.
Pennsylvania
In his budget address, Gov. Shapiro included reforms for education funding, marijuana legalization, and increased public transit funding.
The Pennsylvania Legislature is required to address the public school funding shortfall of almost $6.2 billion after state courts found the state's public school funding system (where underfunding was concentrated in the state's poorest districts) unconstitutional.
Rhode Island
Gov. McKee has proposed reducing the state’s corporate minimum tax and increasing the amount of retirement income that is tax-exempt. He also proposed eliminating the state’s car tax, the tangible property tax for 75 percent of businesses, and creating new sales tax exemptions.
Meanwhile, two dozen legislators have backed a proposal for a new income tax bracket on millionaires. Funds from the three percent tax on taxable income above the million-dollar mark would be dedicated to schools, childcare, and transportation.
South Carolina
In an address to the state, Gov. McMaster expressed interest in speeding up the remaining phase-down to the state's personal income tax (to 6 percent) if future revenues make it possible.
South Dakota
The Senate voted by a wide margin to maintain the temporary nature of last year’s reduction to the sales tax, rather than making the policy permanent. In 2023, the sales tax rate was reduced from 4.5 percent to 4.2 percent. It is set to return to its original rate in 2027.
Gov. Noem signed legislation that revises the maximum property tax levies for school districts for 2025 and modifies the eligibility requirements and increases exempt values for the property tax relief program for disabled veterans and their surviving spouses from $150,000 to $200,000.
Meanwhile, a citizen-led ballot initiative to repeal the sales tax on groceries is currently collecting signatures for a spot on the November ballot. Gov. Noem previously supported repealing the tax, but has withdrawn her support for the initiative due to concerns it would prohibit the state from receiving $20 million a year as part of a settlement from cigarette manufacturers for health care costs and deceptive trade practices.
Tennessee
Gov. Lee proposed cuts to the state's business franchise tax, one of the few progressive elements remaining in Tennessee's tax code. The House Finance Committee advanced a bill to cut the state’s franchise tax to the full body on a voice vote. The measure would change the tax’s base at an annual cost of about $400 million and provide a backwards looking rebate that would cost a total of $700 million. Unlike a similar Senate measure, the House version would require firms receiving the rebate to be publicly identified on the state’s website. The Senate measure would cost $1.9 billion and has no such requirement.
Additional proposals to cap property tax increases and permanently repeal the state's grocery tax are also being considered. The latter was proposed as part of a bill to enact worldwide combined reporting. In a separate approach, the Central Labor Council has been collecting signatures in a push to eliminate the state’s sales tax on groceries via the ballot.
Texas
No 2024 session.
Utah
Utah cut taxes for the fourth straight year after Gov. Cox signed into law a bill lowering the flat income tax rate for individuals and corporations from 4.65 to 4.55 percent. According to ITEP analysis, the bill will provide the wealthiest residents with the biggest benefits and cost the state around $180 million a year in revenue.
Vermont
The House Ways and Means Committee approved three revenue raising bills that are estimated to generate roughly $500 million a year. The proposals include doubling the property transfer tax on homes over $600,000, enacting a 3 percent tax on households earning more than $500,000, and increasing corporate taxes from 8.5 to 10 percent, among other improvements.
This follows lawmakers looking to move revenue-raising bills to tackle income inequality while meeting the revenue needs of the state. Bills that have been discussed include a new tax on capital gains on assets above $10 million and the corporate loophole closing worldwide combined reporting.
Meanwhile, the state is experiencing an increase in the statewide property tax due to rising education costs. Gov. Scott is expected to prioritize these issues but has opposed any tax increases.
Virginia
Lawmakers passed the state budget that includes an expansion of the state’s sales tax to cover digital goods. However, Gov. Youngkin has criticized the sales tax increase and the budget overall, which did not include his proposed cuts to the personal income tax, saying that more changes are needed.
Gov. Youngkin initially proposed reducing income tax rates by 12 percent, expanding and increasing the sales tax rate from 4.3 to 5.2 percent, and increasing the nonrefundable portion of the state's EITC. The budget proposals coming from the House and Senate appropriation committees largely rejected the governor's proposal. Instead, both redirect the $1 billion in income tax cuts to other priorities, such as public education. However, both chambers did include Gov. Youngkin’s proposal to expand the state’s sales tax to include digital goods.
Meanwhile, the House and Senate are working on an agreement to establish regulations and tax rates for adult-use cannabis.
Washington
The U.S. Supreme Court opted not to hear a challenge to Washington's progressive Capital Gains Excise Tax, which means Washington no longer has the most regressive tax code in the nation and can focus on further improvements to its still-upside-down tax structure. However, anti-tax advocates have collected enough signatures to place repeal of the measure on the ballot (alongside an initiative that would repeal the state's carbon tax).
Lawmakers enacted a citizen ballot initiative to ban state and local income taxes. A legal precedent already effectively prohibits state income tax, so the measure has no immediate effect, but could hamper efforts to address Washington’s severely regressive tax code in the future. Lawmakers eliminated the state’s 37 percent tax on medical cannabis while retaining the tax for adult use.
A proposal to tax the wealth of high net worth individuals continues to make waves as well.
West Virginia
Lawmakers passed a bill that over three years will fully exempt Social Security income from the state’s personal income tax at a cost of about $38 million a year. Under current law, seniors with incomes below $100,000 (married) and $50,000 (single) already benefit from this tax break.
Faced with declining revenue, Gov. Justice proposed a set of tax cuts aimed at seniors and families with children (increasing caps on the state's Social Security exemption, expanding property tax credits, and creating a nonrefundable Child and Dependent Care Credit for child care expenses). Meanwhile, legislative leaders have proposed special tax exemptions for physicians new to the state. The possibility of a special session is being discussed.
Wisconsin
Gov. Evers vetoed the three most expensive bills from the legislature’s tax cut package. The centerpiece of the package was an $800 million annual income tax cut that would have expanded the state’s second tax bracket of 4.4 percent to include higher incomes. Vetoed legislation also included an expanded retirement subtraction that would have allowed seniors to exempt up to $150,000 of retirement income from state income tax and an increase to the state’s credit for married filers. Collectively, the vetoed bills would have cost the state an annual revenue loss of $1.9 billion. Gov. Evers signed the fourth bill in the package which expanded the state’s childcare credit (a nonrefundable child and dependent care credit), but also urged legislators to invest further in childcare. Evers vetoed components of a similar tax cut proposal last year as well.
As session wrapped up, Gov. Evers vetoed a final tax cut attempt by Republican lawmakers, which would have collapsed the middle two income tax brackets into one extremely large bracket with a rate of 4.4 percent, effectively flattening most of the state's personal income tax structure. The bill also included an exemption of $150,000 of a couple's retirement income for those over 67. In total, this bill would have cost $3.2 billion in lost revenue over 2 years.
Wyoming
Gov. Gordon signed four bills that will cut property taxes by expanding a range of exemptions for eligible filers. The bills would, to varying degrees, either expand exemptions or broaden the state's property tax refund program.
Property tax cuts remain a legislative priority for the Wyoming Caucus - a group comprised mainly of House Republicans. However, lawmakers in the House voted down a bill that would have eliminated property taxes for roughly 97 percent of residents and replaced the lost revenue by increasing the sales tax by 2 percentage points from 4 to 6 percent.