State Budget Update: Revenue Shortfalls Grow = New Taxes On the Way | AccountingWEB

State Budget Update: Revenue Shortfalls Grow = New Taxes On the Way

Due to the economic conditions in which states are operating, states are cutting budgets and attempting to generate new revenues.

Back in July 2009, the National Conference of State Legislatures (NCSL) released its State Budget Update: July 2009. The report showed states are projecting a cumulative shortfall of $142.6 billion for FY 2010, which is likely to grow during the course of the fiscal year.

The NCSL has compiled a series of tables that document the measures, both proposed and enacted, that states are taking to close their budget gaps. The tables are based on data collected from various media and government outlets.

Note: As of September 11, 48 states have finalized their budgets with an additional 2 legislatures in the process of finalizing their budgets after the start of the new fiscal year (Michigan's fiscal year does not begin until October 1).

The Washington Times also published an ARTICLE on September 28, 2009 discussing actions states are taking in response to the financial crisis.

How are you being affected by the actions states are taking?Have you been "hit" by new taxes?Are new "nexus" laws causing your company to consider filing returns in states you have not filed in before?

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Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States.  He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect."  For more info, visit his website: www.leveragestateandlocaltax.com

You can reach Brian at strahle@leveragesalt.com.

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Because state and local taxes are deceptively simple and endlessly complicated.

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