Top 5 Midterm Tax Changes
- Sales and Use Tax
- November 7, 2014 | Avalara
By now you’ve probably seen the midterm election results, but did you catch the state tax measures that passed? These measures can have a direct impact on commerce. The National Conference of State Legislatures provides a list of state tax measures along with the results. Read on to find out if you or any of your customers will be impacted.
Massachusetts: eliminate automatic gas tax hike
Massachusetts passed a measure that eliminates the requirement that “the state’s gasoline tax, which was 24 cents per gallon as of September 2013, (1) be adjusted every year by the percentage change in the Consumer Price Index over the preceding year, but (2) not be adjusted below 21.5 cents per gallon.”
North Dakota: prohibit taxes on transfer of real property
Thirty-six states currently impose transfer taxes on the transfer of real property. However, North Dakota passed a measure that prohibits the imposition of mortgage, transfer, or sales taxes on the transfer of real property.
Tennessee: prohibit payroll tax on income
Tennessee passed a measure that prohibits the imposition of any state or local tax on payroll or earned personal income.
Washington: eliminate agricultural excise tax preferences in marijuana industry
The Washington legislature eliminated agricultural excise tax preferences for various aspects of the marijuana industry.
West Virginia: property tax exemption for non-profits
West Virginia passed a "constitutional amendment exempting certain nonprofit youth organizations from ad valorem property taxation on certain property." The amendment benefits the Boy Scouts of America, but also sets a precedent for other non-profits in certain areas of the state.
For a more complete list of state tax measures visit the NCSL site.
For a list of sales tax rate changes going into effect in January 2015 visit TaxRates.com.