The 18 states that cut taxes in 2013

November 20, 2013

Nebraska Gov. Dave Heineman, left, hopes to cut taxes further next year (AP Photo/Nati Harnik)

Governors and legislators in 18 states will be able to claim credit for cutting billions of dollars in taxes heading into an election year, according to a new report.

The report, from the conservative American Legislative Exchange Council, catalogues the tax-cutting states, which stretch from Alaska to Florida. The bulk of those states — 13 of the 18 — have both Republican governors and Republican legislatures. A 14th, Nebraska, technically has a non-partisan unicameral legislature, though conservatives dominate the chamber.

Democratic governors of Montana and Arkansas signed tax-cut packages, while Democratic legislative chambers in Iowa and New Mexico passed their own tax cuts.

Here’s where states cut taxes in 2013:

State Type of Tax Estimated relief* Source:
Alaska Oil tax $750 million Marketplace.org
Arkansas Personal income tax $160 million Arkansas News Bureau
Florida Manufacturing sales and use tax $115 million WLRN
Idaho Personal property tax $20 million StateImpact
Indiana Personal and corporate income tax, inheritance tax $1.1 billion National Review
Iowa Property tax, personal income tax $4.4 billion Cedar Rapids Gazette
Kansas Personal income tax, sales tax $3.8 billion Kansas City Star
Mississippi Energy sales tax $6 million Associated Press
Montana Personal property tax $100 million Legislative News Service
Nebraska AMT, capital gains tax $7.8 million**
New Mexico Corporate income tax $55 million Citizens for Tax Justice
North Carolina Personal and corporate income tax, inheritance tax, others $500 million CNN Money
North Dakota Property tax $1.1 billion WDAY
Ohio Personal income, small business $2.7 billion Ohio Department of Taxation [pdf]
Oklahoma Personal income tax $237 million The Oklahoman
Tennessee Sales tax $164 million Chattanooga Times Free Press
Texas Margins tax $1 billion Reuters
Wisconsin Personal income tax $650 million Associated Press

* Note: States estimate the impact of tax cuts over different budget cycles, some in one-year segments, others over two-, three- or five-year periods.

** Nebraska’s Department of Revenue estimated the AMT cut will have a $7.8 million fiscal impact in FY 2014-2015.

Several other states are expected to revisit their tax codes when legislative sessions kick off next year. In Nebraska, Gov. Dave Heineman (R) pursued a more aggressive tax-cutting agenda, but legislators couldn’t come to an agreement this year.

Reid Wilson covers national politics and Congress for The Washington Post. He is the author of Read In, The Post’s morning tip sheet on politics.
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