Summer 2024 State Tax Policy Changes:
As summer sets in, states are rolling out policy changes from their legislative sessions. While most state tax changes typically take effect on January 1 to align with the tax year, some significant changes are slated for July 1, the start of the fiscal year for most states (except Alabama, Michigan, New York, and Texas).
Key Tax Changes Taking Effect in Summer 2024
Several notable tax changes will come into effect:
- Maine: Property tax adjustments.
- Wyoming: Updated economic nexus thresholds for marketplace facilitators and remote sellers.
- Colorado, Georgia, Idaho, Indiana, Kansas, Utah, and West Virginia: Retroactive tax changes from January 2024.
- Excise Tax Changes: Various states are implementing important changes in excise taxes.
This overview highlights major structural changes, including rate and threshold adjustments, new taxes, and changes in tax bases for major statewide taxes.
Specific State Tax Changes Effective July 1, 2024
California
- Implementation of an 11% excise tax on retail sales of firearms, ammunition, or precursor parts.
Colorado
- Increased tax rates on tobacco and nicotine products per Proposition EE, with funds directed to tobacco education and preschool programs.
Maryland
- Increased taxes on tobacco products, including cigarettes and electronic smoking devices.
Minnesota
- A $0.50 retail delivery fee on certain transactions over $100.
Mississippi
- Increased bailment fee on spirits and wine stored in the state’s Alcohol Beverage Control warehouse.
New Hampshire
- Increased exemption amount for wood and wood chips from the state’s timber tax.
New Jersey
- Incremental gas tax increase and new registration fee for zero emission vehicles.
Oregon
- Increased tax on moist snuff.
Tennessee
- Adoption of new sourcing rules for interstate sales of services performed on tangible personal property and computer software.
Utah
- Increased markup rates on spirits, wine, and malt liquor. Incremental beer tax increases through 2027.
Virginia
- Higher threshold for nonprofit financial audits for sales tax exemption and increased tax on liquid nicotine products.
Wyoming
- Updated economic nexus rules, removing the 200-transaction threshold.
Additional Changes
Alabama
- Assessment growth cap on commercial and residential property, effective October 1, 2024.
- Changes in the sales tax rate for alcoholic beverages.
Maine
- Repeal of the municipal property tax levy growth limit and expanded definition of “tobacco products” for tax purposes.
Missouri
- New local taxes on recreational marijuana.
Oklahoma
- Exemption of groceries from state sales tax, effective August 2024.
These changes highlight the evolving landscape of state tax policies, affecting various aspects of individual and corporate taxation.
