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State Tax Changes as of January 1, 2020
· Thirty-four states have major tax changes taking effect on January 1, 2020.
· Arkansas, Tennessee, and Massachusetts will each see reductions in their
individual income tax rates.
· Five states (Iowa, Kansas, Maine, North Carolina, and Ohio) will see notable
changes to their individual income tax bases.
· Corporate income, capital stock, franchise, or similar taxes on businesses or
financial institutions will decrease or be eliminated in six states (Connecticut,
Florida, Illinois, Indiana, Missouri, and Mississippi) but will increase in two
states (New Jersey and Washington).
· Oregon will implement a new Corporate Activity Tax (CAT), which is a
modified gross receipts tax (GRT).
· Florida is the lone state with a general sales tax rate change (a reduction).
· Five states will see changes to their estate taxes. Connecticut, Minnesota,
Vermont, and New York will see increases in their estate tax exemptions
(taxpayer-friendly provisions), while Hawaii’s estate tax will become more
· Two states (Illinois and Louisiana) will implement new excise taxes on
· Three states (Maine, Nevada, and New Hampshire) will begin applying excise
taxes to vapor products.
· Four states (Hawaii, Illinois, Michigan, and Wisconsin) will begin requiring
marketplace facilitators to collect sales taxes.
· Three states (Arizona, Georgia, and Washington) will modify the economic
nexus threshold in their remote sales tax collection requirements.