Alaska –On September 8th, S.B. 113 was sent to the Alaska Governor Dunleavy who has until October 1st to act. This bill would adopt market-based sourcing and require highly digitized businesses to apportion income using a single sales factor apportionment formula. This bill has been criticized as being discriminatory against highly digitalized businesses and may raise potential constitutional challenges under the Commerce Clause and Due Process Clause.
Arizona – In 2026, Arizona taxpayers will vote to amend the Arizona Constitution to prohibit lawmakers from: (1) imposing a tax or fee on any person based on vehicle miles traveled by the person, and (2) enacting laws or rules to monitor or limit vehicle miles traveled by any person without that person’s consent. See SCR 1004 for the proposed amendment.
Colorado – Colorado became the first state to address the effects of the One Big Beautiful Bill. In a six-day special session, the legislature enacted a few measures to offset the projected budget deficit attributable in part to the OBBA. These measures include: H.B. 25B-1001, which removed the sunset date for the qualified business deduction add back; H.B. 25B-1002, which added five countries to the tax-haven list and amended foreign-derived deduction-eligible income; and H.B. 25B-1005, which eliminates the sales tax vendor’s fee beginning January 1, 2026. To review the bills, see Colorado 2025 Special Session Bills.
New Jersey – On September 25th, the New Jersey Economic Development Authority began accepting applications for the Next New Jersey Manufacturing Program. This program was established through A5687/S4407, which created a $500 million tax credit program to incentive capital investment and job creation. Under this program, eligible manufacturers can receive a tax credit up to $150 million, based on their proposed capital investment and number of new jobs. For more information, see Next NJ Manufacturing Program.
Ohio – Ohio Governor Mike DeWine signed into law H.B. 96, which implements a two-year phased transition to a flat personal income tax rate. Specifically, retroactive to January 1, 2025, the top personal income tax rate is reduced from 3.5% to 3.125%. Effective January 1, 2026, a flat personal income tax rate of 2.75% will apply to income over $26,050.
Ohio – On August 25, Ohio Representative Gary Click proposed three bills, coined the “Taxpayer Freedom Trilogy” to address the property tax crisis in Ohio. The three bill are currently pending House Ways and Means Committee. See here for the press release published by Representative Click.
Texas – In the November 2025 general election, Texas taxpayer vote to amend the Texas Constitution to increase the property tax exemption for business personal property from $2,500 to $125,000 of the market value. See HJR 1 for the proposed amendment.