FeatureA Global Perspective on U.S. State Sales Tax Systems as a Revenue Source: Inefficient, Ineffective, and Obsolete November 30, 2021

The study provides an international perspective on U.S. state and local sales tax systems through a comparison to the primary general consumption taxes in the European Union (the Value-Added Tax (VAT)) and Canada (the Goods and Services Tax/Harmonized Sales Tax (GST/HST) and a few provincial sales taxes). In particular, the study evaluates the efficiency, efficacy, and historical development of general consumption taxes in each of these geographies based on the three key principles of an optimal consumption tax.

Feature2021 State and Local Business Tax Burden Study October 22, 2021

The Council On State Taxation (COST) and the State Tax Research Institute (STRI) are pleased to announce the release of the nineteenth annual study of state and local business taxes. The report, prepared by Ernst & Young LLP, shows all state and local business taxes paid in each of the 50 states and the District of Columbia. 

Businesses paid more than $839 billion in state and local taxes in FY2020, an increase of 0.5% from FY2019. State business taxes decreased by 1.9%, and local business taxes grew by 3.1%. In FY2020, business tax revenue accounted for 44.3% of all state and local tax revenue. 

FeatureConvergence and Divergence of Global and U.S. Tax Policies August 30, 2021

In this article, COST’s Karl Frieden and EY’s Barbara Angus describe the unprecedented convergence of international, federal, and state tax policies represented by the OECD/G-20 pillar 1 and 2 proposals; the importance of approaching U.S. tax policy from the perspective of aggregate federal and state tax impacts; and the potential risk of divergence between U.S. and global income tax rules that could result in a competitive disadvantage for the United States.

FeatureTracking Chart: State and Local Disaster Relief Guidance December 22, 2021

COST is tracking state and local tax relief guidance in response to fires and other natural disasters.

FeatureEureka Not! California CIT Reform Is Ill-Conceived, Punitive, and Mistimed May 24, 2021

In this article, Frieden and Kenney examine the major provisions of Californiaʹs A.B. 71, proposed legislation that significantly expands the stateʹs taxation of foreign-source income.

FeatureState Adoption of European DSTs: Misguided and Unnecessary May 10, 2021

In this article, Frieden and Do explain why the adoption of state-level digital services taxes that mirror European DSTs represents a solution in search of a problem that generally does not exist at the state level: the absence of economic nexus and market sourcing principles to address the unique challenges of digital business models

FeatureTracking Chart: State and Local Government Filing Relief due to COVID-19 April 29, 2022

To help our members keep track of state and local government filing relief due to COVID-19, COST is compiling a state-by-state chart of guidance that has been issued on the matter. COST staff will update the chart on a regular basis as we see more guidance. If you have any additional information to share that is not on the chart, please contact Pat Reynolds or Priya Nair.