State Tax Update Archive
[2003 - 2004] [2002 and Older]

Volume 7, Issue 6

KS Tax Increases Loom, Revenue Projections Fall Off
The house-senate conference committee on the omnibus/cuts bill adjourned 4/30/01 without the addition of a proposed insurance tax.  Members of the house oppose the tax because it will cost taxpayers $10 million, although it's possible that the tax will be included within the accepted receipts base for FY 2002.  The conference committee also considered a beverage alcohol tax on 4/30/01, costing $10 million, a plan that will allow the state government to keep 2/3 of moneys collected under the tax, and the other 1/3 returned to local governments for programs to discourage alcohol and drug abuse.  The senate substitute for the house school finance plan HB 2336 does not itself include any tax increases, although the senate education committee is considering four different tax increase proposals, including a state sales tax increase and taxes on targeted industries like tobacco, alcohol, beer, and soda pop.  Revenue estimates in KS have fallen far short of projections: $79 million short in this fiscal year, and nearly $126 million short for FY 2002.

14 States Sign Tax Relief Resolutions
The following 14 states have passed resolutions instructing their congressional delegations to support and work to pass President George W. Bush's tax relief proposal: Colorado (House), Florida (House), Georgia (Senate), Idaho (House and Senate), Iowa (House and Senate), Kansas (House), Kentucky (House and Senate), Michigan (House and Senate), Montana (House and Senate), New Jersey (House), Utah (House and Senate), Ohio (Senate), Oregon (House and Senate), West Virginia (House and Senate). 

 IN Gov. Proposes Tax Increases, Not Spending Cuts
On 4/12/01, Indiana legislators learned of an unforeseen $923 million revenue shortfall, far less than projections made in December 2000.  To address the revenue shortfall, Gov. Frank O'Bannon (D) proposed raising the tax on cigarettes from 15.5 cents to 65.5 cents.  This tax increase would cost consumers $327 million per year.  Gov. O'Bannon also recommended discontinuing property tax credits benefiting farmers and small business owners, costing them $132.5 million more per year.  Over the past 10 years, state spending in Indiana has increased 102%, while inflation has totaled just 42 percent.

 VA Tax Money Used to Lobby Against Taxpayers?
There is some question as to whether the Virginia Association of Counties, the Virginia Municipal League, the Virginia Sheriffs' Association, the Virginia Sheriffs Institute, and the Virginia School Boards Association have lobbied the General Assembly for higher taxes.  All of these organizations collect dues from groups financed by taxpayers.  The Virginia Association of Counties, for example, encouraged people at a local Board of Supervisors meeting 4/2/01 to demonstrate in support of more funding for various projects and interest groups, such as by opposing Gov. Gilmore's car tax roll-back. 

MD Edges Closer to Socialism
Emergency legislation (SB 486/HB 790) was signed into law by Gov. Parris Glendening on 4/20/01 expanding the power of the Maryland Economic Development Corporation (MEDCO) so that it may compete directly with the private sector in any capacity, without legislative or legal restraint.  The original intent of MEDCO was that it should step in where the private sector was unwilling or unable to develop projects of benefit to Marylanders.  Maryland Citizens for Property Rights has begun collecting signatures to put the MEDCO expansion proposal on the November ballot. 

MA Gov. Swift Signs Pledge, Promises Tax Hike Veto
Acting Governor Jane Swift announced 4/17/01 her intention to veto any and all tax increases, a promise consistent with the Taxpayer Protection Pledge that she signed both as a candidate for Lieutenant Governor and again on 4/17/01 as Acting Governor.  Gov. Swift stated her opposition to MA house and senate plans to increase the cigarette tax by 50 cents per pack, a plan that would raise cigarette taxes to $1.26 per pack, the highest state-imposed tax on cigarettes in the nation.