Category: taxation

How to Measure Pension Fiscal Health in Your City

The state of retirement funding has become an obvious fiscal concern for city governments, especially since the Great Recession. In fact, a recent National League of Cities survey revealed the cost of employee/retiree pensions ranks third (following infrastructure needs and public safety needs) among the most negative factors impacting city budgets. Perhaps more telling is

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Six Things City Leaders Should Know About the Tax Cuts & Jobs Act

Yesterday, the House Ways and Means Committee released its long-awaited “Tax Cuts & Jobs Act” plan. The proposed tax reform plan aims to streamline the U.S. tax code and create some tax relief for middle and low income Americans by reducing the number of tax brackets, reducing marginal tax rates, and expanding family tax credits.

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Senate Plan Threatens State and Local Tax Deduction

Thursday evening, the Senate passed the FY2018 Budget reconciliation spending blueprint, paving the way for a potential $1.5 trillion tax cut. In a misguided effort to provide a pay for an ambition tax reform plan yet to be seen, Senator Shelley Moore Capito (W.Va.) proposed an amendment that opens the door to a cap or

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South Dakota Asks Supreme Court to Consider Online Sales Tax

For years, local authorities have tangled with online retailers over sales tax collection within communities. But this fall, a new development in a blockbuster Supreme Court case could force the issue into the national spotlight. In Quill Corp. v. North Dakota (1992), the Supreme Court held that states cannot require retailers with no in-state physical presence to

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Five Things City Leaders Should Know About Tax Reform

This week, the “Big 6” tax negotiators comprised of leadership from the House, Senate and Administration, released its highly anticipated tax framework. The plan was a slightly updated version of the outline we saw in April. While the new document does provide some answers for cities, many unknowns still remain. Little has changed since the

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Internet Sales Tax Challenge Could Face Supreme Court

Following a predictable loss before the South Dakota Supreme Court, the state of South Dakota is expected to ask the U.S. Supreme Court to rule that its law requiring out-of-state retailers to collect sales tax is constitutional. Doing so will require the U.S. Supreme Court to take the unusual step of overruling precedent. In Quill Corp.

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Is Fiscal Growth Slowing in Cities?

When the Great Recession hit in America, city governments felt the effects acutely. Growth in municipal budgets contracted noticeably as hiring freezes, service changes, and even bankruptcies rolled across the country. Now, that continuous fiscal growth may be slowing, according to a new report. NLC’s 2017 City Fiscal Conditions, a survey of city finance officers, reveals

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Local Leaders Take a Stand for the State and Local Tax Deduction

This post was co-authored by Brett Bolton and Will Downie. City and county leaders took to Capitol Hill this week to discuss a critical but often overlooked part of the federal tax code: the state and local tax deduction (SALT). The deduction plays a critical role in helping cities provide vital services such as healthcare,

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