3/9/2015 Group Watch: Governor’s Tax Increase Details
The Governor’s proposed tax increase is supposed to raise just over $4 million, but many claim it will bring in much more. Here are a few of the proposed increases and changes and the amount they will raise:
- Cigarette and Tobacco Tax: $205 million. It would raise taxes on pack of cigarettes by 82.5 cents and by a proportional amount on other tobacco products.
- Sales Tax for Automobiles: $200 million. It would double the sales tax on automobiles from 2% to 4%.
- Public Utilities License Tax: $41 million. It would remove the exemption that applies to municipal utilities.
- Rental Tax for Automobiles: $31 million. It would raise car rental tax to 4%.
- Insurance Premium Tax: $25 million. It would remove the credit for state privilege tax paid by insurance companies and remove the credit for ad valorem tax paid by insurance companies.
- Corporate Income Tax: $20 million. It would require combined income reporting for corporations doing business in other states.
- Individual Income Tax: $12 million. It would eliminate income tax withholding exemption certificates.
- Financial Institution Excise Tax: $1 million. I would remove the credit that financial institutions receive for sales taxes paid.
Look for much more information on the proposed tax increases in future issues of Group Watch.
