Kentucky House Legislators are considering multiple options in a  tax reform proposal, with the most backing behind the options to decrease the state sales tax rate from 6% to 5%, and the elimination of the state’s corporate income tax.  House Speaker Greg Stumbo backs these options, stating that the loss in State revenue from these cuts would be made up by eliminating a broad array of tax exemptions and that these changes would ensure that all residents and businesses are paying their fair share of taxes.  The tax reform proposal could be considered in the current legislative session.

On 29 December 2009, Indiana State Senator Mike Delph filed Senate Bill 174 to decrease the Indiana state sales tax rate from 7% to 6%. If the General Assembly fails to pass a Senate Joint Resolution 1, which would permanently cap the state property tax rates.  Senator Delph states that lawmakers promised taxpayers that the sales tax increase was passed to provide relief to property tax income; however, since there is no property tax rate cap, and rates have increased, this promise has been broken.  If the Resolution, capping property tax rates, is not agreed upon by the 116th General Assembly before 3 November 2010, the sales tax decrease will be effective 1 January 2011.

A proposal to reduce the state excise tax on vehicles less than six years old will be included on an upcoming Maine ballot. This proposal will also eliminate sales tax on hybrids and other alternate energy vehicles, and exempt them from excise tax for three years.  Proponents of this measure say taxpayers could save money with these cuts, while some larger cities stand to lose revenue if it should pass.

On 26 August 2009 Connecticut’s governor offered a new budget plan that decreases the sales tax rate from its current rate of 6 percent to 5.5 percent. In a compromise for this decrease in the sales tax rate, the State’s income tax on millionaires would be raised, generating a proposed $1 billion over two years.  The proposed sales tax decrease would take effect 1 October 2009, and the income tax change is retroactive from 1 January 2009.

The New Mexico office of Taxation and Revenue has posted their gross receipts changes effective 1 July 2009. Included in the change publication are tax increases or decreases in the following counties: Bernalillo, Cibola, DeBeca, Dona Ana, Los Alamos, Rio Arriba, Sandoval, Sante Fe, Taos, and Valencia.

On 18 March 2009 Arkansas Gov. Mike Beebe signed SB 88, now Act 436 of 2009, into law.  This act will lower the state sales tax on groceries from 3 percent to 2 percent effective 1 July 2009.

A state senate committee has approved a constitutional amendment to remove the state’s four percent sales tax on groceries on 18 February 2009. This legislation would replace the lost sales tax revenue by raising income taxes on individuals making more than $100,000 annually and couples making more than $200,000 annually. The measure is slightly different from a grocery tax bill approved by a House committee the previous week .

While the North Dakota House passed HB 1268 to exempt clothing from the 5% state sales tax, they turned down HB 1521 to cut the state sales tax rate from 5% to 4.5%.  The bill exempting sales tax on clothing must now move to the Senate for approval.

HB 2588 introduced 22 January 2009, would if passed remove the remaining 1.5% state sales and use tax from food for human consumption. If passed it will become effective 1 July 2010.

Senator Brogdon and Representative Proctor are sponsoring legislation that would do away with Oklahoma’s sales tax on groceries by 1 July 2009.  Lawmakers will convene on 1 February 2009 to consider this amongst other proposals to end the grocery tax.