The State Tax Structure Work Group met on September 21 and provided additional guidance to the Department of Revenue (DOR) on its economic models for potential revenue policy changes. The committee reviewed the approaches recommended by DOR and provided guidance on approaches for modeling the revenue impacts of selected policy options:

• Replacing the state B&O tax with a margins tax;

• Expanding the Working Families Tax Credit;
• Implementing a primary residence property tax exemption;
• Implementing a wealth tax; and
• Changing the property tax limit factor.

The committee is expected to vote on potential recommendations at its November 14 meeting, and the final report of the work group is due by December 31, 2022. While the focus is on the state tax structure, changes related to the margins tax and property tax limit proposals could impact local government taxes. The November elections may also impact potential final tax structure recommendations.

Date to remember

The State Tax Structure Work Group is scheduled to meet on Monday, November 14, at 9 am.