May 3rd 2024
Balancing the State Budget, Potential New Taxes
Recently, there was list of potential taxes that were being considered, which I would like to bring to your attention:
Retail Sales and Use Tax
• Raise state sales tax from 6.5 to 6.6 percent ($225 million)
• Raise state sales tax to 7 percent ($1.12 billion)
• Raise state sales tax to 7.5 percent ($2.23 billion)
• Repeal the sales tax exemption for all newspapers ($30.7 million)
• Repeal the sales tax exemption for gasoline ($1.537 billion)
• Repeal the sales tax break for manufacturing ($416 million)
• Repeal sales tax exemption for vehicle trade-ins ($309 million)
• Collect sales tax on over the counter drugs ($38.6 million)
• Extend sales tax to candy and gum ($58.8 million)
• Repeal sales tax exemption for custom software ($252 million)
New Taxes
• Soft drinks: 5 cents per 12 oz. can at wholesale ($277 million)
• Bottled water: 1 cent per ounce at wholesale ($366 million)
Real Estate Excise Tax
• Raise rate to 1.6 percent from 1.28 percent ($381.4 million)
Cigarette Tax
• Raise by 25 cents per pack ($56.4 million)
Business & Occupation Tax (B&O) Rate Increase
• 10 percent surtax on all ($630.6 million)
• 25 percent surtax on all ($1.577 billion)
We need to want and see what tax or fee is next These are proposed taxes. Check back to find out what taxes they decide on. There could be more or less.