States and Taxes: It’s All About That Base
IRS: If your state offers inflation payments, hold off on filing your taxes. The agency is working on guidance related to state-issued inflation payments or tax rebates issued in dozens of states. The IRS says it needs more time to determine which of these payments will be subject to federal income tax. Rather than call the IRS with questions while preparing tax returns, it recommends that “the best course of action is to wait for additional clarification on state payments.”
Florida Gov. DeSantis eyes the sales tax base in $2 billion tax cut proposal. The Republican governor announced a “Family-Focused Tax Relief” plan that would exempt from permanently exempt gas stoves and baby and toddler necessities from the sales tax. The plan would also exempt for one year items including children’s books, toys, household items under $25 in value and oral hygiene products.
Wisconsin Gov. Tony Evers proposes that counties and large cities be allowed to request sales tax increases from voters. The Democrat wants to fund local governments with 20 percent of the state sales tax. Currently, local governments receive less than 5 percent, according to the Legislative Fiscal Bureau, and Wisconsin counties can levy at most a half-cent sales tax. Evers’ proposal would allow counties and large cities to levy higher sales taxes if their voters approve.
How are state and local governments using and regulating blockchain technology and cryptocurrencies? A new TPC report analyzes how governments are implementing cryptocurrency initiatives. Supporters of these technologies tout the transformative potential to improve local governance, but others are skeptical about long-term effects on equity and adequate consumer protections. Based on a database of local laws and policies and interviews with local officials, TPC researchers suggest important considerations for local governments to incorporate into their crypto policies.
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