State tax – Montgomery Homestead http://montgomeryhomestead.com/ Thu, 21 Oct 2021 22:27:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://montgomeryhomestead.com/wp-content/uploads/2021/06/cropped-icon-32x32.png State tax – Montgomery Homestead http://montgomeryhomestead.com/ 32 32 Illinois Supreme Court rules Cook County firearms and ammunition taxes unconstitutional https://montgomeryhomestead.com/illinois-supreme-court-rules-cook-county-firearms-and-ammunition-taxes-unconstitutional/ Thu, 21 Oct 2021 20:49:13 +0000 https://montgomeryhomestead.com/illinois-supreme-court-rules-cook-county-firearms-and-ammunition-taxes-unconstitutional/ Two Cook County taxes on firearms and ammunition are at risk after the Illinois Supreme Court found they violated the state’s constitution. In a 6-0 decision, Supreme Court Justice Mary Jane Theis wrote in a notice filed Thursday that the county’s firearms and ammunition tax orders violate the constitution’s uniformity clause, and taxes “Impose a […]]]>

Two Cook County taxes on firearms and ammunition are at risk after the Illinois Supreme Court found they violated the state’s constitution.

In a 6-0 decision, Supreme Court Justice Mary Jane Theis wrote in a notice filed Thursday that the county’s firearms and ammunition tax orders violate the constitution’s uniformity clause, and taxes “Impose a burden on the exercise of a fundamental right protected by the Second Amendment.”

“Although taxes do not weigh directly on the right of a law-abiding citizen to use a firearm in self-defense, they weigh directly on the right of a law-abiding citizen to acquire a firearm. and ammunition necessary for self-defense, ”Theis wrote.

“In the plain language of the ordinances, the revenue generated by the gun tax is not directed to any fund or program specifically related to reducing the cost of gun violence,” she wrote.

Illinois Supreme Court Judge Mary Jane Theis in 2012.
Brian Jackson ~ Sun-Times file

“In addition, nothing in the ordinance indicates that the proceeds of the ammunition tax should be specifically intended for initiatives aimed at reducing gun violence. Thus, we consider that the tax orders are unconstitutional under the uniformity clause. “

This opinion, in the Guns Save Life Inc. case against Cook County, County Revenue Department Director, Cook County Sheriff Tom Dart, partially overturns the decisions of the Cook County Circuit and the Courts. state appeal that maintained the taxes. and returns the case to the circuit court for summary judgment in favor of the association.

Chief Justice Anne Burke had no part in deciding the case, according to the notice. In a separate opinion, Judge Michael Burke largely agreed with his colleagues, but expressed concern that the majority opinion “leaves room for a municipality to pass a future tax – targeting firearms and ammunition sales – which is more closely aligned with the goal of improving firearms. violence.”

Guns Save Life members did not immediately respond to a request for comment.

It was not immediately clear what the ruling would mean for county taxes.

In a statement, a spokesperson for Cook County Board Chairman Toni Preckwinkle said the county was “disappointed” by the recent Illinois Supreme Court ruling.

“We intend to meet with our legal advisor and determine what next steps may be warranted,” the spokesperson said. “It’s no secret that gun violence continues to be an epidemic in our region. … Addressing the societal costs of gun violence in Cook County is an important and important government goal.

Cook County Board Chairman Toni Preckwinkle in 2019.

Cook County Board Chairman Toni Preckwinkle in 2019.
Colin Boyle / Sun-Times

“We continue to assert that the cost of a bullet should reflect, if only a little, the cost of violence which ultimately is not possible without the bullet. We are committed to protecting County residents from the scourge of gun violence with or without this tax. “

The spokesperson pointed to recent data from the Chicago Police Department which shows that the number of shootings in Chicago has increased by almost 10% from last year with nearly 2,900 shootings this year.

“The use of firearms has had a significant impact on public safety, health and general county expenses,” the spokesperson’s statement read in part.

The County Firearms Tax Ordinance, which was enacted in 2013, imposes a tax of $ 25 on the purchase of a firearm from a Cook County retailer.

The county then passed a separate ammunition tax – $ 0.05 per round for centerfire ammunition, typically used for rifles, shotguns, and handguns, and $ 0.01 per round for Rimfire ammunition, which is popular for small game hunting or sport shooting, according to the Target Barn auto defense and competition site.


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Spirits industry pushes states to cut taxes on canned cocktails https://montgomeryhomestead.com/spirits-industry-pushes-states-to-cut-taxes-on-canned-cocktails/ Wed, 20 Oct 2021 15:09:54 +0000 https://montgomeryhomestead.com/spirits-industry-pushes-states-to-cut-taxes-on-canned-cocktails/ Close-up of discounted cans and cases of packaged cocktails on Safeway store shelves in Lafayette, Calif., December 31, 2020. Smith / Gado Collection | Archive photos | Getty Images John Granata, co-founder of Jersey Spirits Distilling and president of the New Jersey Craft Distillers Guild, has been calling for a drop in excise taxes in […]]]>

Close-up of discounted cans and cases of packaged cocktails on Safeway store shelves in Lafayette, Calif., December 31, 2020.

Smith / Gado Collection | Archive photos | Getty Images

John Granata, co-founder of Jersey Spirits Distilling and president of the New Jersey Craft Distillers Guild, has been calling for a drop in excise taxes in New Jersey for years. For the first time, however, it looks like state lawmakers are finally listening.

“It was a surprise that lawmakers even entertained him,” Granata said.

The spirits industry is currently working to pressure states to reduce taxes on canned cocktails to more closely mimic those imposed on beer and seltzer water.

Excise taxes have been imposed on alcohol since the early days of the United States, but since the ban was repealed, spirits have been taxed more than other forms of alcohol by the federal government and the States. The high alcohol content of alcohol carries a taboo that separates it from beer and wine in the eyes of some lawmakers and watchdogs. Producers, importers, wholesalers, and even retailers in some states must pay excise taxes on alcohol, although they usually pass the cost on to consumers.

The Granata Distillery began selling canned cocktails during the pandemic to make up for on-site sales lost during the health crisis. New Jersey had been slow to legalize take-out cocktails. Most ready-to-drink Granata drinks have an alcohol volume of around 10%.

“Once we got into this, we started to think about taxes,” said Granata. “State taxes have become a stumbling block in trying to do things on an even larger scale. With the prices already set, this has become difficult.”

In addition to federal excise taxes, Jersey Spirits Distilling pays $ 5.50 per gallon of New Jersey excise tax on these drinks because they contain spirits, while a beer maker would pay only 12 cents for the. same amount, even though the beer had a higher ABV. If New Jersey passes a bill through its state legislature, the distillery will pay 15 cents for each gallon of its canned cocktails.

“Alcohol is alcohol is alcohol”

The pandemic and consumer desire for convenience have driven sales of canned cocktails. In 2020, US consumption of canned cocktails increased by 52.7% from the previous year, accounting for 6.9% of the total volume in the ready-to-drink alcoholic beverage category, according to IWSR data. . The increase in sales has encouraged liquor companies to go on the offensive in a fight for tax parity.

“With all the attention that has come organically, we started to engage a lot more,” said Les Fugate, vice president of state and local public affairs for distiller Jack Daniels Brown-Forman. “We are always looking for the possibility that our products are treated the same, and this is the perfect way to demonstrate that alcohol is alcohol is alcohol.”

The spirits industry believes canned cocktails can experience even greater growth if distillers could pay lower excise taxes, making the drinks cheaper for consumers. A six-pack of hard soda typically costs consumers around $ 10, which is about the starting price of a low-end canned four-pack of cocktails. Distillers claim that canned cocktails are similar in alcohol content to beer and seltzer water and are treated unfairly simply because their drinks contain spirits.

So far this year, Michigan and Nebraska have already passed laws to reduce excise taxes on canned cocktails. New Jersey and Pennsylvania have bills tabled in their state legislatures, while Hawaii, North Carolina, Vermont, Washington, and West Virginia have bills that will come into effect in their sessions. from 2022.

“This excessive tax burden is unfair to consumers and creates a significant barrier for many small artisanal stills who wish to enter this growing category,” said Lisa Hawkins, senior vice president of public affairs for the Distilled Spirits Council of the States. -United. “States are taking a closer look at this issue to provide consumers with more convenient and equal access to spirits-based RTDs, and to ensure that these products are taxed fairly.”

A DISCUS survey of craft distillers earlier this year found that 62% of respondents who do not currently make canned cocktails cited the higher tax rate as a barrier to entering the market.

Federal changes are far away

Despite a few victories at the state level, changes at the federal level seem far away at this point.

“You’re starting to hear a little bit about the conversation at the federal level, but right now I think most of the attention is at the state level,” Fugate said.

Even at the state level, there is opposition, especially from brewers and beer distributors, who fear losing a competitive advantage. Beer consumption has declined in recent years as consumers turn to seltzer water or spirits or refuse to drink altogether.

This spring, Boston Beer founder Jim Koch reportedly sent letters to a handful of beer industry business groups urging them to work together to oppose the growing movement, according to Beer Business Daily. In addition to brewing Sam Adams, Boston Beer also owns Truly Hard Seltzer, which has seen slower sales growth this summer. A representative for Boston Beer did not return CNBC’s request for comment.

“Legislation to reduce taxes on canned cocktails is bad for state budgets and for the well-paying local jobs that depend on our country’s brewing industry,” a spokesperson for the Beer Institute said. , a trade group in the beer industry, in a statement to CNBC. “We look forward to working with elected officials at all levels on ways to help strengthen local jobs and strengthen public safety that does not involve subsidizing alcohol companies.”

Watchdogs in the alcohol industry are also opposed to reducing excise taxes on canned cocktails.

“There is no reason they should get a tax cut,” said Michael Scippa, public affairs director for Alcohol Justice, a California-based organization. “Our real concern, one of our unwavering goals, is to raise taxes on all alcoholic beverages because they are just too low and many have not been raised in generations, making them unnecessary in terms of income generation. “


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Avalara: More states push to tax online ads despite challenges https://montgomeryhomestead.com/avalara-more-states-push-to-tax-online-ads-despite-challenges/ Tue, 19 Oct 2021 08:12:18 +0000 https://montgomeryhomestead.com/avalara-more-states-push-to-tax-online-ads-despite-challenges/ Digital advertising taxes are gaining ground in the United States, despite the lack of a clear enforcement route and questionable legal status. The most recent proposal comes from Bay State. Massachusetts introduces simplified tax on online advertising Massachusetts Bill H.4179, a law establishing a tax for online advertising, would levy an excise tax of 6.25% […]]]>

Digital advertising taxes are gaining ground in the United States, despite the lack of a clear enforcement route and questionable legal status. The most recent proposal comes from Bay State.


Massachusetts introduces simplified tax on online advertising

Massachusetts Bill H.4179, a law establishing a tax for online advertising, would levy an excise tax of 6.25% on gross revenues from digital advertising services by “persons with revenues from services. of digital advertising provided within the Commonwealth ”. The first million dollars in revenue from digital advertising services provided in the Commonwealth each year would be tax exempt.

The bill defines “digital advertising services” as “advertising services on a digital interface, including”

  • Banner

  • Interstitial advertising

  • Search engine advertising

  • “Other comparable advertising services”

A digital advertising service is “provided within the Commonwealth” if it is received on a device with an IP address located in Massachusetts. As defined in H.4179, an IP address is “a unique string of characters assigned to each device connected to a computer network using the Internet protocol for communication”.

The tax proposed under H.4179 is considerably simpler than the digital advertising taxes introduced in (and abandoned by) Massachusetts earlier this year. Or, as Scott Peterson, vice president of government relations at Avalara puts it, “it’s awfully light on the details.” This could be problematic as there is no easy way to tax online advertising.

Complicating factors include:

  • Legality: Can a state tax isolate a form of advertising to be taxed?
  • Responsibility: Who will pay the tax?
  • Site: How can a state ensure that it is properly sourcing digital advertising?


Legal: is a tax on online advertising legal?

As Massachusetts once again attempts to impose a digital advertising tax on the governor’s office, Maryland prepares to defend its revolutionary digital advertising tax in court. It is challenged by the United States of America Chamber of Commerce and, separately, by Comcast and Verizon.

According to the American Bar Association, “Maryland law is problematic in many ways” including, but not limited to:

  • It could violate the Internet Tax Freedom Act by taxing e-commerce without imposing a similar tax on non-digital advertising revenue.

  • This could go against the First Amendment and violate the Dormant Trade Clause by discriminating against out-of-state businesses in favor of state-owned businesses.

  • This could interfere with speech on some platforms.

Peterson believes that “the constitutional challenges of taxing digital advertising and exempting all other forms of advertising are overwhelming.”

If Maryland’s digital advertising tax is found to be unconstitutional or in violation of federal or state law, the American Bar Association predicts that “taxes in other states could become just as unlawful.”

On the other hand, if Maryland wins in court (twice), it will pave the way for other states to pass similar laws.


Responsibility: who and what would these taxes affect?

Massachusetts would tax all digital advertising services on a “digital interface”, which is defined as “any type of software, including a website, part of a website, or an application that a user can access.”

Presumably, this would affect businesses like Google, Facebook, and YouTube, as a large portion of their income is generated from online advertising. But what about:

  • Hulu or similar streaming service providers?

  • National and local newspapers?

  • Other websites that generate income through advertising?

Peterson believes that “no one really understands what digital advertising is” at this point. “Does Hulu have gross revenues from providing digital advertising services when they have only provided a medium that someone else has presented the advertisement on?”

Washington, DC, ditched its first move to a digital advertising tax in part out of fears it would negatively affect community newspapers and other local businesses. As the Tax Foundation noted at the time, “a large retail chain based in the district probably could not be taxed on advertising purchases, but a smaller regional chain based in the district could.” .

And there’s this elephant in the room: Will businesses pass the cost of this tax on to consumers?

Massachusetts H.4179 does not address this issue. Maryland law prohibits taxpayers from passing the cost of the tax “directly” on to customers who purchase digital advertising services, but it does not prohibit businesses from charging customers for digital advertising services or from charging customers for digital advertising services. places a paid wall for content that is currently offered for free.


Location: How do you determine the location of a digital ad?

Digital ads target consumers wherever they go. To ensure that they only tax revenue generated from online advertisements displayed within state borders, Massachusetts and Maryland plan to use IP addresses to determine the location of the ad displayed – whether it’s a desktop computer in an apartment in Annapolis or a mobile phone owned by a Texan exploring Cape Cod.

All devices connected to the Internet have an IP address assigned by the Internet Service Provider (ISP). According to NortonLifeLock, IP addresses reveal the geolocation (for example, area code, city, and zip code) of devices connected to the Internet and change whenever a device connects to another Wi-Fi network or router. This is the reason why a person searching for “pizzerias” in Baltimore gets different results than those looking for “pizzerias” in Boston.

IP addresses do not reveal the user’s mailing address or name. Indeed, the location linked to an IP address is generally that of the nearest ISP server. In theory, this could cause Massachusetts to tax an advertisement on a device in New Hampshire that is connected to an ISP in Massachusetts. This is also why my cell phone provider sometimes thinks I am in Canada when in fact I am in the United States on the rugged coast of the Olympic Peninsula in Washington.

How can a State verify the accuracy of an IP address? What if an ad appears on a device using a virtual private network (VPN), which NortonLifeLock says “completely changes your IP address, placing your geolocation hundreds or even thousands of miles away where you actually access the Internet “. How can a state ensure that businesses are taxed on income generated from digital ads on devices located in the state, and not in another state? These are the types of questions Maryland, Massachusetts, and any other state looking to tax digital advertising will need to answer.


Other issues

There are other issues as well. Maryland’s digital ad tax lacks clear procurement rules, which the Maryland comptroller is currently working to establish. It relies on an allocation formula yet to be determined to determine revenue from digital advertising sources in the state.

Yet, as Scott Peterson notes, “allocation may not be the biggest challenge this type of tax faces.” The global minimum tax agreement could pose a more serious threat as it calls for the status quo and the removal of existing tax provisions on digital services. Although the Maryland tax applies to annual gross income derived from digital advertising services in the state, it uses variable tax rates that increase with the taxpayer’s overall income. The American Bar Association points out that this worldwide gross annual income comes “from whatever source (including non-advertising income)”, which “has the obvious effect of increasing the payout percentage and the liability of the taxpayer concerned. “. Taxing income from a taxpayer’s worldwide operations, advertising or otherwise, could violate the trade clause.


States interested in taxing online advertising

Despite all of the above, Maryland intends to apply its digital advertising tax on January 1, 2022, if it can. Massachusetts is one of many states interested in following Maryland’s lead. Others include:


Could Taxing Digital Advertising Be The Next Wayfair?

Could the fate of taxes on digital advertising mimic that of online sales tax? States have tried for decades to gain the right to tax sales from out-of-state sellers, have been repeatedly barred from doing so, and ultimately won when the Supreme Court ruled in favor of it. ‘State in South Dakota v. Wayfair, Inc. (June 21, 2018).

Peterson may say, “But this tax is poorly thought out. The constitutional challenges are serious and very different from the challenges raised in Wayfair. In Wayfair, the courts had long recognized that transactions were taxable. The issue in Wayfair was the mechanism. to collect the tax. ”

Whatever happens in the future with taxes on digital advertising, we will cover it at the tax office in Avalara.

Disclaimer

Avalara inc. published this content on October 19, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 19, 2021 08:11:01 AM UTC.


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Natrona County property tax saga guides legislative subcommittee https://montgomeryhomestead.com/natrona-county-property-tax-saga-guides-legislative-subcommittee/ Sun, 17 Oct 2021 22:11:46 +0000 https://montgomeryhomestead.com/natrona-county-property-tax-saga-guides-legislative-subcommittee/ Natrona County President Paul Bertoglio (center left), former Johnson County assessor Cindy Barlow (far right) and property tax protesters at the joint revenue committee meeting state on September 30 (Wyoming Legislature, YouTube) CASPER, Wyo – The now infamous ordeal of the more than 3,100 assessments of property tax protests in Natrona County in 2020 gave […]]]>
Natrona County President Paul Bertoglio (center left), former Johnson County assessor Cindy Barlow (far right) and property tax protesters at the joint revenue committee meeting state on September 30 (Wyoming Legislature, YouTube)

CASPER, Wyo – The now infamous ordeal of the more than 3,100 assessments of property tax protests in Natrona County in 2020 gave the Wyoming Legislature Joint Revenue Committee guidance for potential reforms during their meeting in Casper on September 30.

Of these appeals, approximately 1,900 were to be submitted to the Natrona County Equalization Board (BOE), made up of the Natrona County Commission.

Commission President Paul Bertoglio told the committee about the arduous four-month process to hear cases and the limited authority of the commission to adjudicate them.

The article continues below …

Converse County Appraiser Dixie Huxtable, speaking on behalf of the Wyoming County Appraisers Association, told the committee that county BOEs can’t fix a property value, they can only affirm the assessor’s decision or dismiss it based on the information gathered during the hearings.

The committee also heard from Natrona County landowners detailing their cases. He also heard from former Johnson County assessor Cindy Barlow, who has represented dozens of clients at the BOE hearings.

A four-person subcommittee, including House 58 representative Chuck Gray, is now tasked with drafting legislation that could solve some of the problems that have led to the unprecedented number of cases. These possibly included changing the 30-day window in which taxpayers must file protests, changing Wyoming’s status as a nondisclosure state regarding real estate sales, and reviewing the legal presumption that the ratings are correct.

Before then-commissioner Matt Keating became an appraiser in 2019, Natrona County was not in statistical compliance with the state’s mandate and many properties were undervalued. Wyoming (and appraisal offices across the country) use the Computer Aided Mass Appraisal System (CAMA), which determines value in part using all valid sales of properties in a similar land economic zone ( usually a neighborhood).

Fee assessments, which people might use to secure or refinance a mortgage, cannot be used in the CAMA system.

The Wyoming State Board of Equalization submitted Keating’s office to a work order in 2019, after finding “undervaluation and non-uniformity in almost all categories” in previous years.

To meet compliance, Keating and his staff set out to redesign the Land’s Economic Zones, which brought many new values ​​to statistical compliance, but increased (and in some cases, multiplied) final ratings.

Another problem, Bertoglio said, was that characteristic adjustments to properties (such as topographical features that affect the ability to develop land) had been removed from the system.

While many of the new awards brought overall ratings into line, some protesters said their land was valued at the same rate as land in neighborhoods of a very different character.

But Bertoglio said the county had no choice but to affirm Keating’s assessments in many cases. Although he and Keating both said some mistakes were made in individual cases, they said the methodology applied was appropriate.

“The assessor followed the rules,” he said, “and as an equalization board if they follow the rules we literally have to reaffirm, even if it doesn’t pass the smell test . “

The ability of property tax protesters to make their case at hearings was also an area for reform. Taxpayers have 30 days after the postmark on notices of assessment, which are mailed no later than the fourth Monday in April.

Gray said he heard from some voters who, because they checked their mail on an irregular basis, ended up only having 10 days to consider appealing.

Barlow added that the process of combating ratings is overwhelming and cumbersome, and that some of his clients did not receive the sales data that the appraiser used to determine the values ​​before their hearings date, if at all. all.

The sales data used to determine values ​​is not public information because Wyoming is a non-disclosure state. It can only be achieved through the process of “evidence exchange” between the protester and the assessor’s office.

Even with the evidence in hand, Barlow said ordinary citizens often don’t know how to use it to build their case.

“It has turned out to be a process of intimidation, which intimidates the taxpayer and forces them to hire a lawyer and incurs an exponential expense that sometimes far exceeds tax,” Barlow told the committee.

Barlow and property tax protester John Burd told the committee that reassessing Wyoming’s nondisclosure status (making relevant sales data freely available throughout the year) would be the most immediate step the committee could. take to give taxpayers a realistic chance to mount a just protest.

“We have to be able to see the selling price,” Barlow said. “We have to be able to have this data to say that the numbers used by the assessor are correct.”

Gray said he would also consider resurrecting a bill he co-sponsored earlier this year, capping the increase in one-year property tax assessments at 3%, without including increases in value attributable to “any changes, additions, reductions or improvements to the property made during the previous year.

Bertogli said there were around 300 property tax protests in 2021.


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Bills To Repeal Michigan’s “Stamp Tax” Pass Through House https://montgomeryhomestead.com/bills-to-repeal-michigans-stamp-tax-pass-through-house/ Sat, 16 Oct 2021 15:16:00 +0000 https://montgomeryhomestead.com/bills-to-repeal-michigans-stamp-tax-pass-through-house/ LANSING, Michigan – Two bills that would repeal state taxes on menstrual products were passed in the Michigan House of Representatives on Thursday. If fully approved, Bills 4270 and 5267 would repeal the state stamp tax. This week’s vote moved the bills forward through the Senate. Currently, menstrual products are considered “luxury items” and are […]]]>

LANSING, Michigan – Two bills that would repeal state taxes on menstrual products were passed in the Michigan House of Representatives on Thursday.

If fully approved, Bills 4270 and 5267 would repeal the state stamp tax. This week’s vote moved the bills forward through the Senate.

Currently, menstrual products are considered “luxury items” and are subject to state 6% sales and use tax. The tax applies to products such as tampons, maxi pads, menstrual cups and other menstrual products.

“It is important that our laws recognize that feminine hygiene products are an essential part of our lives and our health,” said Representative Julie Brixie, a Democrat from the Township of Meridian who sits on the Tax Policy Committee of the Bedroom. “For families living in poverty, it will make a difference and I am happy that the bills are passed in the House for the first time. Now we have to work on the Senate.

There have been similar bills in previous years that seek to do the same thing. In fact, comparable proposals have been presented every year since 2016, but none have been passed by the Michigan House or Senate.

That changed this week when the House passed the bill with bipartisan support and a 94-13 vote.

Representatives Padma Kuppa and Tenisha Yancey co-sponsored the bills passed this week.

“We don’t tax groceries and other essentials for a reason, but we still tax feminine hygiene products,” Brixie said. “Our tax policy is inconsistent and I have worked hard to educate my colleagues on this issue. A few of them have daughters and really understand it now that it has been brought to their attention. “

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Texas Constitutional Amendment election on November 2: what you need to know https://montgomeryhomestead.com/texas-constitutional-amendment-election-on-november-2-what-you-need-to-know/ Fri, 15 Oct 2021 10:00:00 +0000 https://montgomeryhomestead.com/texas-constitutional-amendment-election-on-november-2-what-you-need-to-know/ Sign up for The Brief, our daily newsletter that keeps readers up to date with the most essential Texas news. Voters in Texas will soon be able to weigh in on potential changes to the state’s constitution regarding church services, eligibility requirements for judges, county infrastructure, and more. Election day is November 2 and early […]]]>


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State extends October 15 tax filing deadline for residents affected by Ida https://montgomeryhomestead.com/state-extends-october-15-tax-filing-deadline-for-residents-affected-by-ida/ Thu, 14 Oct 2021 04:26:06 +0000 https://montgomeryhomestead.com/state-extends-october-15-tax-filing-deadline-for-residents-affected-by-ida/ Residents of Nassau and Suffolk who are due to file their taxes on Friday will have more time following an extension for some New Yorkers announced by the State Department of Taxation and Finance on Wednesday. The extension, which moves the filing date from Oct. 15 to Jan. 3, aims to give taxpayers affected by […]]]>

Residents of Nassau and Suffolk who are due to file their taxes on Friday will have more time following an extension for some New Yorkers announced by the State Department of Taxation and Finance on Wednesday.

The extension, which moves the filing date from Oct. 15 to Jan. 3, aims to give taxpayers affected by the remnants of Hurricane Ida more time to meet certain filing and payment deadlines. Some exceptions may apply to the extension, depending on the individual situation of the declarant, the tax service said. For more information, visit tax.ny.gov.

The new extension has a big impact on taxpayers who previously requested and received extensions to file their 2020 tax returns.

New Yorkers benefiting from the new filing date include those who needed to file for a tax credit or refund; those who file extension requests; those who have to pay tax or a tax deposit; and those who file returns, including personal income tax, corporation tax or any other tax levied by the state.

Those benefiting from the extension will not have to pay late deposit, overpayment or underpayment fees or interest if deposits are received before January 3.

Islanders and other state residents who earned $ 72,000 or less last year can file their state and federal returns for free using the tax department’s Free File software by Friday on its website at tax.ny.gov/pit/efile/.


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Sports betting brings in millions in tax revenue for Iowa https://montgomeryhomestead.com/sports-betting-brings-in-millions-in-tax-revenue-for-iowa/ Tue, 12 Oct 2021 23:11:00 +0000 https://montgomeryhomestead.com/sports-betting-brings-in-millions-in-tax-revenue-for-iowa/ In the first two years since sports betting was legalized in Iowa, the state has brought in nearly $ 8 million in tax revenue. WEST OF THE MONKS, Iowa – EDITOR’S NOTE: The above video is from September 7, 2021. During nearly every televised sporting event in Iowa, viewers are bombarded with advertisements for sports […]]]>

In the first two years since sports betting was legalized in Iowa, the state has brought in nearly $ 8 million in tax revenue.

WEST OF THE MONKS, Iowa – EDITOR’S NOTE: The above video is from September 7, 2021.

During nearly every televised sporting event in Iowa, viewers are bombarded with advertisements for sports betting. The recently legalized industry is taking off in the state, grossing millions of dollars.

According to data from the Legislative Services Agency (LSA), from June 30, 2020 to June 30, 2021, more than $ 6 million in state tax revenue was collected in sports betting and fantasy sports betting.

In fiscal 2020, sports betting brought in about $ 1.78 million in tax revenue to Iowa, allowing lawmakers to set aside $ 300,000 of that money to fund the gambling treatment program. the state.

That’s a total of almost $ 8 million since legalization.

LSA told Local 5 it was hard to tell what a “regular” year in Iowa looked like for sports betting: it was legalized in August 2019, then the pandemic struck in March 2020, slowing participation for a few months.

Derron Heldt, vice president of racing at Prairie Meadows Racetrack and Casino, said that since the state allowed the Iowan to register and place bets digitally instead of going to a licensed casino, traffic to the casino has decreased.

“With the mobile app, this is where most of the betting takes place,” Heldt said. “On average, about 95 percent of all bets are placed on the mobile side.”

Heldt said the expansion of online sports betting in Iowa has provided casual fans with fun.

“It’s the convenience factor where you can do it at home,” he said.

Iowa casinos have benefited enormously from sports betting.

As of the summer, state tax revenues for the state’s 19 casinos have brought in more than $ 1.35 million.

“We are coming out of a very good September where we posted double digit growth,” said Heldt. “I think it looks like there is still more steady growth to come.”

Most of the revenue for casinos like Prairie Meadows comes from slots and table games, but Heldt believes more and more apps will register in Iowa for sportsbook fans.

Half of the US states have legalized sports betting. Many other state legislatures are passing bills to make it legal.

WATCH: Kinnick Stadium gives Hawkeyes a much needed boost against Penn State


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General State Fund, road revenues continue to exceed estimates https://montgomeryhomestead.com/general-state-fund-road-revenues-continue-to-exceed-estimates/ Mon, 11 Oct 2021 17:49:18 +0000 https://montgomeryhomestead.com/general-state-fund-road-revenues-continue-to-exceed-estimates/ FRANKFORT, Ky. (WTVQ) – State Budget Director John Hicks today announced that General Fund revenues increased 35.0% in September with revenues of $ 1,505.7 million. dollars, including the $ 225 million deposit from a one-time legal settlement with Flutter Entertainment, the parent company. from PokerStars. September collections excluding settlement increased 14.8% from September 2020. So […]]]>

FRANKFORT, Ky. (WTVQ) – State Budget Director John Hicks today announced that General Fund revenues increased 35.0% in September with revenues of $ 1,505.7 million. dollars, including the $ 225 million deposit from a one-time legal settlement with Flutter Entertainment, the parent company. from PokerStars.

September collections excluding settlement increased 14.8% from September 2020.

So far in fiscal year 2022 (FY22), the general fund has grown by 20.0%, or 12.1% after adjusting for settlement.

In the first quarter of the fiscal year, tax revenue continues to exceed budgeted revenue estimates and the significant growth rate follows a fiscal year where revenue grew by more than 10%.

Road Fund revenue for September totaled $ 137.6 million and was 5.0% above September 2020 levels. For the first three months of the fiscal year, collections increased 3.5%.

Hicks noted that collections were strong across all major accounts and that the $ 225.0 million settlement provided an additional boost to the general fund.

The settlement has been of great benefit to the finances of the Commonwealth of Nations. Equally positive tax news is that all major General Fund taxes continue to perform well. September’s corporate tax revenue was the highest amount collected in a month in the past 15 years, reflecting strong corporate profits.

Collectively, sales tax, personal income tax and major business taxes rose 12.7% in fiscal 22, providing a solid platform for overall revenue growth. Kentucky, like many other states, has experienced one of the strongest overall income growths in more than a decade. “

Based on the September results, General Fund revenues may decline by 15.7% for the remainder of the year while remaining within the budget estimate.

The Consensus Forecasting Group is revising the official revenue estimates with the next meeting scheduled for October 14 before finalizing the estimates in December.

Among the major accounts:

  • Personal income tax rose 7.6% in September, as withholding taxes, net returns and returns all increased. Since the start of the year, collections in this account have increased by 6.5%.
  • Sales tax revenue increased 10.8% in September and 9.9% in the first three months of the year.
  • Tax revenues from corporations and limited liability entities increased 55.8% for the month and 76.0% in the first quarter of the year. September is generally the second month of June as the highest collecting month for business taxes each year. The amount of $ 222.7 million was the highest in 15 years.
  • Cigarette taxes were flat in September, but are down 4.4% for the first three months of the year.
  • Property taxes rose 29.8% in September and 16.5% for the year.
  • Coal severance tax revenue fell 7.9% for the month. Year-to-date collections are 6.1 percent higher than in FY21.
  • Lottery revenues increased 13.6% in September and 14.9% for the year.

Road Fund revenue rose 5.0 in September with collections of $ 137.5 million, while year-to-date collections have increased 3.5 percent. The official Road Fund revenue estimate projects a 2.0 percent decrease in revenue for the full year (FY22). Based on collections since the start of the year, revenue may drop 3.9% for the remainder of the year to meet the estimate.

Among the accounts:

  • Fuel revenues increased 5.8% in September and 4.9% for the year.
  • Motor vehicle use collections were up 4.8 percent for the month. Since the start of the year, collections are up 3.8%.
  • Taxes on licenses and privileges fell 3.8% in September. For the first three months of the year, revenue declined 3.4%.
  • Non-tax revenue increased 32.6 percent in September and 10.6 percent for the year.


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Does your state tax social security benefits? https://montgomeryhomestead.com/does-your-state-tax-social-security-benefits/ Sun, 10 Oct 2021 11:27:09 +0000 https://montgomeryhomestead.com/does-your-state-tax-social-security-benefits/ October 10, 2021 6:00 a.m. newsfeedback@fool.com (Kailey Hagen) Posted: October 10, 2021 6:00 a.m. Update: October 10, 2021 6:35 AM We give the government a large part of our income during our working life, part of which comes back to us later in the form of social security benefits. But even that might not be […]]]>

We give the government a large part of our income during our working life, part of which comes back to us later in the form of social security benefits. But even that might not be entirely ours. The governments of 13 states impose certain social security benefits on the elderly, forcing them to rely more on their personal savings to cover their expenses.

Knowing which states they are and how they calculate Social Security benefit taxes can help you make informed decisions about where you want to live in retirement and how much you need to save on your own.

Image source: Getty Images.

The 13 states that tax social security benefits

The following states have taxes for Social Security benefits:

  1. Colorado
  2. Connecticut
  3. Kansas
  4. Minnesota
  5. Missouri
  6. Montana
  7. Nebraska
  8. New Mexico
  9. North Dakota
  10. Rhode Island
  11. Utah
  12. Vermont
  13. West Virginia

But just because you live in one of these states doesn’t mean you will have to pay taxes on your benefits. Each state has its own formula that determines what percentage of beneficiaries’ benefits are taxable.

For example, Kansas residents only pay Social Security income taxes if their Federal Adjusted Gross Income (AGI) is greater than $ 75,000, regardless of their tax filing status. Other states have different limits for different filing statuses. The only way to know for sure if you will have to pay state taxes on your Social Security benefits is to check with your state’s Department of Revenue.

It might be possible to avoid state taxes by limiting your spending in retirement. Or if you’re not attached to where you live, you might consider moving to a state that doesn’t impose tax benefits. But even then, you may not be able to completely avoid taxes on Social Security benefits.

The federal government also taxes benefits

The federal government also taxes social security benefits for some seniors based on their interim income. This is your AGI, plus tax-free interest and half of your annual Social Security benefits.

If the interim income exceeds $ 25,000 for an individual or $ 32,000 for a married couple, the government can tax up to 50% of Social Security benefits. If the provisional income exceeds $ 34,000 for an individual or $ 44,000 for a married couple, the government can tax up to 85% of the benefits.

But just because you might owe tax on that amount doesn’t mean you actually will. The formula that determines how much of your Social Security benefits are actually taxable is beyond the scope of this article, but here’s a guide to federal taxes on Social Security benefits if you want to learn more.

How to keep more of your benefits

Keeping track of your spending in retirement is essential to maintaining as much of your Social Security benefits as possible. The money you withdraw from Roth accounts will not count against you, as these withdrawals are generally tax free. But the money taken from tax-deferred retirement accounts will increase your AGI.

It may be possible to keep your interim income low enough to avoid benefit taxes, but it is not possible in all situations. If that doesn’t work for you, the best thing to do is estimate how much you might owe and make sure you’re saving enough money on your own to cover those taxes.

The rules regarding the taxation of Social Security benefits could change by the time you register, so it is important to stay abreast of any new laws at the state or federal level that could affect the amount you owe. . Readjust your retirement plan whenever something changes so you don’t have any surprises when you start claiming benefits.

The $ 16,728 Social Security bonus that most retirees completely ignore

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “social security secrets” could help boost your retirement income. For example: a simple tip could net you up to $ 16,728 more… each year! Once you’ve learned how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Just click here to find out how to learn more about these strategies.

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