State Tax Update Archive
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Gov. Racicot dreaming (MT)

Gov. Marc Racicot plans to call a special session in Montana to consider funding economic development and possibly an energy issue.  The state has a sizable surplus (roughly $100 million) and the governor recently suffered a setback when the courts ruled a second coal tax unconstitutional thus creating a funding problem for a proposed development package already passed by the Legislature.

The governor has already promised to veto any tax cuts and continues to stymie efforts to do so by not including it as an agenda item when he calls the session.  However, Republican legislators have promised to include tax cuts in any special session. "How about giving a little economic development to me and you-a little jingle in the pocket that isn't taken away in taxes," said Senate President Bruce Crippen (R-Billings).

Republican leaders also went on to say that they would force the issue by collecting enough signatures to expand the scope of the session.  They need 76 of the 150 legislators to do so and collected 41 after only 30 minutes of trying.  Furthermore they believe they have the votes to override a promised veto by Gov. Racicot.  There are 91 Republicans and 59 Democrats.    The GOP economic development plan that they are backing includes:

·         Funding economic development by creating a trust within a trust (the $625 million coal tax trust fund).  The interest from the trust within a trust would be enough to fund development approved by the Legislature.

·         Remove 100,000 of the lowest-income Montanans from the income tax rolls at a cost of $5-6 million.

·         Lower income tax brackets (undetermined amount).  Montana has 10 income tax brackets ranging from 2-11%.  Incidentally the 11% state income tax bracket is the highest in the country.

·         Provide additional reimbursement to local governments for reducing local property taxes.

Interestingly Lieutenant Governor Judy Martz- who is campaigning to replace current governor Racicot this fall- has distinguished herself by publicly calling on the governor to support a proposal that includes tax cuts. 

Kentucky Taxpayers United (KTN) announce awards for 28 legislators

Rand Paul, president of KTN announced on April 12^th that 28 members had scored high enough on the annual ratings to warrant an award. 

"Since 1994, Kentucky Taxpayers United has published a rating of the State Legislature.  All legislation concerning taxation and spending is evaluated and catalogued.  The legislators who vote against higher taxes are rewarded with the Taxpayers Best Friend Award," said Rand Paul.  For specifics please call Dr. Paul at 207-796-4108

Pennsylvania Senate moves to cut taxes

Pennsylvania state senators moved to cut taxes by nearly $745 million.  The bill includes:

·         A property tax rebate plan

·         A $100 million reduction in the death tax

·         A phase-out of the capitol stock and franchise tax

·         A one week holiday on sales taxes for computer purchases

·         A broadened exemption to the personal income tax.

"This tax cut package before us offers the largest tax break in a single year for Pennsylvanians," said Senate Majority Leader Joseph F. Loeper (R-Delaware).  This will be the seventh straight year the Legislature has cut taxes," he concluded.

Friend and Enemy Awards

Enemy to Gov. Paul Patton (D-KY).  He used taxpayer money to come to Washington DC to lobby Congress for more taxes.  Friend to Reps. Thomas and Sessions for their leadership and support of the Tax Limitation Amendment voted on last week.