An Informational Paper

MAJOR STATE TAX CHANGES ENACTED IN 1961 An Informational Paper THE ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS WASHINGTON 25, D. C.: February 1962

MAJOR STATE TAX CHANGES ENACTED I N 1961 State taxes yielded $19 billion in the fiscal year 1961, about $1 billion, or 5.4 percent more than in the previous year. On the basis of 1961 legislative action, a similar increase can be expected for fiscal 1962. General sales taxes continued to be the largest single source of State tax revenue, followed by motor fuel and individual income taxes. State tax collection data for 1961 are summarized in Table I. Since a far greater number of legislative sessions are held in odd than in even years, and much of the legislation is not finally enacted until late in the sessions, the impact of legislative tax changes is not generally evident until the following (even) fiscal year. Thus, a particularly heavy volume of tax legislation in 1959 contributed importantly to the unusually large increase in State tax collections between 1959 and 1960 -- a rise of 13.7 percent. While tax legislation was not nearly as voluminous in the 1961 sessions as in 1959, a number of significant revenue measures were enacted. Over half of the 47 State legislatures meeting in regular session during 1961 adopted measures increasing State tax revenue. These tax law changes are estimated to increase tax yields by about $700 million for fiscal year 1962. Some changes were effective late in the calendar year 1961 or early in 1962, and their full impact will not be felt until fiscal year 1963. For the 21 States with significant rate increases, together with the broadening of tax bases in some instances, these changes alone will result in about a 10 percent rise in State tax collections for fiscal 1962 over 1961 yields. Several additional States enacted minor increases in the bases of particular taxes, but the effect on revenue is relatively negligible. Generally, 1961 State tax legislation focused on consumer taxes. New general sales taxes were enacted in Texas and Wisconsin, while a number of States increased their rates or broadened their sales tax bases. Rate increases were numerous for tobacco products (mainly cigarettes) and to a lesser extent for alcoholic beverages. Changes affecting the yields of income taxes were made in only ten States. West Virginia adopted an -- -- This paper was prepared by Robert K. Kinsey, of the Comission Staff, on the basis of revenue estimates supplied by State fiscal officials and detail of State legislation reported in Commerce Clearing House, State Tax Reporter.

individual income tax, and New Jersey a "commuter" net income tax. The current rates of the States' major taxes are shown in Table 11. Percentagewise, the largest anticipated increase in fiscal 1962 tax revenue, resulting from 1961 legislative enactments, occurred in three States - Connecticut, Missouri and Texas - about 20 percent in each case. Connecticut increased tax rates virtually "across-the-board." Increases in selected excise taxes and the adoption of income tax withholding by Missouri will raise revenue in that State substantially. With the enactment of a 2 percent general sales tax, Texas became the 36th State to derive revenue from that source. The adoption of a broad-based, but selective sales tax and an increase in individual income tax rates, coupled with the initiation of withholding, are expected to raise significantly the tax yield in Wisconsin. On a full-yearly basis, these tax changes may raise Wisconsin's tax yield by as much as 25 percent. Their impact on fiscal 1962 revenues, will be substantially less due to the late action of the 1961 legislative session. Table I11 describes the major tax increases that were adopted by the 1961 legislatures. General Sales Taxes New and increased general sales taxes can be expected to add about $300 million to State revenue from this source. With the adoption of the general sales tax by Kentucky in 1960 and by Texas in 1961, at rates of 3 and 2 percent, respectively, 36 States now use this revenue source. The action by the legislatures of these two States marks the first adoption of general sales taxes since that of Nevada in 1955. In addition, Wisconsin, in a late 1961 legislative enactment, adopted a 3 percent selective retail sales and use tax covering a wide range of items. The major categories excluded are clothing, food (other than restaurant meals), medical expenses, including drugs, and public utilities (other than telegraph and telephone service). The new tax, which includes in its coverage consumer durables, tobacco, alcoholic beverages, admissions, and recreational equipment, became effective on February 1, 1962. Four States raised their general sales tax rates in 1961. Connecticut and Illinois increased their rates from 3 to 3.5 percent; Utah also raised its rate one-half percent, from 2 to 2.5 percent; and West Virginia enacted a temporary one percent increase, from 2 to 3 percent, to remain in effect through June 30, 1962, Also, late in 1960, the Michigan legislature increased its general sales tax rate from 3 to 4 percent, effective January 1, 1961. Washington made permanent its 4 percent sales and use tax, which had been scheduled to

revert to 3 1/3 percent on July 1, 1961, and the State of North Dakota extended the expiration date of its sales tax by two years, to July 1, 1963. A number of States broadened their general sales tax bases. The most extensive changes were made by North Carolina which, in a general overhauling, removed most of the previous exemptions. Food, drugs (other than prescription medicines), and laundry and dry cleaning services are now taxable, and the tax rate on airplanes and motor vehicles was increased from 1 to 1.5 percent. Twenty-seven States and the District of Columbia now subject food to the general sales tax. Maryland reduced its sales tax exemption from sales under 51 cents to those under 25 cents. Kansas, in addition to its excise taxes on beer and cigarettes, now subjects these items to the general sales tax. Illinois now applies its 3.5 percent tax to property sold in connection with the sale of a service, and also subjects building renovations to the general sales tax. Sales of agricultural implements are now taxable at 1 percent under the New Mexico general sales tax. Alabama, Arkansas, Florida and Wyoming made minor additions to their sales tax bases. In some instances, State sales tax bases were narrowed. California and Ohio now exempt prescribed drugs and medicines, making a total of twelve States, plus the District of Columbia, which exclude these items from the general sales tax. (Prescribed drugs and medicines are also excluded from the Wisconsin selective sales tax.) The Michigan use tax on telephone and telegraph services, which went into effect on January 1, 1960, was allowed to expire on June 30, 1961. Sales taxes levied by local governments are now in effect in twelve States, nine of which also have State sales taxes. The rates of these locally imposed sales taxes are typically 0.5 or 1.0 percent in the States which also levy a State sales tax, and range from 1 to 3 percent in the remaining three States which do not levy sales taxes. Since nearly all of the municipalities and most of the counties in Illinois levy a 0.5 percent sales tax, the overall rate on the preponderance of taxable retail sales in that State is 4 percent. A similar situation exists in California where the widespread use of a one percent sales tax by counties and municipalities, coupled with the State's 3 percent tax, produces a combined 4 percent rate. Michigan, ~eilhs~lvania and Washington, three States in which there are no local sales taxes, also levy a 4-percent sales tax, the highest in the nation.

Four counties comprising the Denver, Colorado metropolitan area levied (effective January 1, 1962) a two percent district sales tax under 1961 State legislation authorizing counties to band together into a single capital improvement district to levy an areawide sales tax not to exceed 2 percent. Thus, with a State rate of 2 percent, the combined general sales tax in the Denver metropolitan area is also 4 percent. Motor Fuel Taxes Higher gasoline tax rates can be expected to add $100 to $150 million in fiscal 1962 to collections in the 6 States which enacted such increases in 1961. Alaska added another cent to its tax, making its 8 cent rate, the highest State rate in the nation. The tax is scheduled, however, to revert to 7 cents on July 1, 1964. Missouri incrhsed its gasoline tax from 3 to 5 cents, subject to voter approval of a constitutional amendment authorizing the apportionment of the proceeds of the motor fuel tax between the State and its political subdivisions. One cent rate increases, from 5 to 6 cents, were passed by the Delaware and New Jersey legislatures, Pennsylvania replaced its previous combined 3 cents permanent and 2 cents temporary tax on gasoline and diesel fuel by a permanent 7 cents tax, an increase of 2 cents per gallon, And Washington moved up its gasoline and use fuels tax rate from 6.5 to 7.5 cents per gallon. A temporary 6 cents per gallon motor fuels tax rate, scheduled to revert to 4 ~ was, made permanent by Iowa. State gasoline taxes now vary from 5 cents in eight States to 8 cents per gallon in one, with the most cormnon rate of 6 cents per gallon occurring in nineteen States and the District of Columbia. A rate of 7 cents per gallon is imposed by sixteen States. Local gasoline taxes are imposed by 375 municipalities and 36 counties in 8 States, most conmronly at 1 cent per gallon. In Alabama, where more than half of the municipalities and 12 of its counties levy 1 cent gasoline taxes, the combined State and local tax is at least 8 cents for much of the gasoline purchased there. Missouri permits more than 100 municipalities to levy gasoline taxes, and New Mexico, about 60 municipalities. In the latter two States, most municipal gasoline taxes are also at the 1 cent rate, Tobacco Taxes With the addition of Virginia's cigarette tax, adopted in 1960, 47 States and the District of Columbia now tax tobacco products. Only

Colorado, North Carolina, and Oregon remain outside of this tax field. Legislatures in sixteen States enacted into law this year increases in cigarette tax rates varying from 1 to 4 cents per pack, and two States made permanent previously temporary tax increases. These increases should raise almost $100 million in additional revenue for the States in which they occurred. Tax increases of 1 cent per pack were levied by six States, 1% cents by one, 2 cents by five, 3 cents by three, and 4 cents by one. With these new rate increases, State cigarette taxes per pack of 20 cigarettes range from 2 to 8 cents, Ten States have a rate of 5 cents and 12 States have a rate of 6 cents per package. The lowest rate of 2 cents per pack is imposed by only one State and the District of Columbia, whereas five States impose a rate of 8 cents per package of cigarettes. In contrast to these widespread increases in cigarette taxes, one State, Michigan, lowered its rate from 6 to 5 cents per pack, The 2 cents supplemental (school aid) cigarette tax was repealed and the regular cigarette tax rate increased from 4 to 5 cents per package. A 20 percent excise tax on the wholesale price of tobacco products, other than cigarettes, was also repealed. A similar 15 percent tax on tobacco products was repealed by New York, and Minnesota reduced from 20 to 10 percent its impost, The Maine tax on tobacco products, other than cigarettes, which is levied on the retail price, was likewise repealed. The only reported tax increase on tobacco products other than cigarettes was enacted by Oklahoma, where the rates on cigars and smoking tobacco were raised. At the present time, cigars are taxed by 15 States at rates expressed as a percentage of the cigar price or as a specified amount per 1,000 quantity. Smoking tobacco is subject to excises in 13 States. In other legislative action affecting revenue yields from tobacco products, the discount allowed licensed cigarette dealers for their stamp-affixing services was reduced in several States, including Connecticut, Delaware, Maine, Missouri, Nevada, Pennsylvania, Washington and Wisconsin. A trend to a discount rate of approximately 3 percent is apparent. Kansas, as mentioned above, now subjects cigarettes to its general sales tax, in addition to the specific cigarette tax, and forbids cities, unless specifically authorized by law, to impose sales or excise taxes on them. Similarly, in legislation enacted this year, Maryland prohibits local cigarette taxes (but distributes the proceeds from the additional 3-cent tax to its counties). With the increase of ~evada's cigarette tax from 3 to 7 cents per pack, municipalities will now share in the proceeds,

Alcoholic Beverage Taxes Tax rates on one or more forms of alcoholic beverages were increased by nine States. Rate increases on beer were enacted by Connecticut, Idaho, Kansas, Maine, Missouri and Nevada. Alaska, Connecticut, Kansas, Missouri, Nevada, and North Carolina raised tax rates on distilled spirits. Increases in wine taxes were imposed by Alaska, Connecticut, Delaware, Kansas, Missouri, and Nevada. Ternporary tax rate increases were extended on beer by North Dakota, on distilled spirits by Massachusetts, Minnesota, and North Dakota, and on wine by Massachusetts and Minnesota. Michigan allowed its temporary rate increase on beer to expire, Except for Hawaii, all States and the District of Columbia tax beer on a gallonage basis. Hawaii taxes all alcoholic beverages at 16 percent of the wholesale price. The rates range from 62 cents in Wyoming to over $13 per barrel in Mississippi and South Carolina. Over half of the States tax beer at less than $3 per barrel. Gallonage taxes on distilled spirits in the 32 States using the license system of distribution vary from 75 cents per gallon in South Dakota to $4 per gallon in Alaska. A rate of less than $2 per gallon is levied in 18 States and the District of Columbia. Taxes on wines in States using the licensing system are less than 30 cents per gallon on light wines in 19 States, and less than 50 cents per gallon on fortified wines in 16 States. Other Sales and Gross Receipts Tayes Legislation affecting the taxation of insurance companies was enacted in ten States. Taxes on insurance premiums were raised in Connecticut, Montana, and New Mexico. Massachusetts and West Virginia extended their temporary tax increases on insurance gross premiums, and Pennsylvania made permanent its temporary tax on title insurance and trust companies. In another change, Pennsylvania widened the base of its gross premiums tax to include domestic life insurance companies, in addition to out-of-state insurance companies. Nevada, in a base-broadening move, extended its 2 percent gross premiums to annuity companies doing business in the State, A gross premiums tax on foreign or alien title insurers was imposed by New York. Two States adopted tax measures lessening their revenue yields from insurance company taxation. New Hampshire passed a law providing for the gradual exemption of the annuity premiums of life insurance companies from the State's gross premiums tax. And Vermont repealed its special tax on the premiums of fire insurance companies.

Several additional enactments significantly affected selective sales and gross receipts taxes. Connecticut raised the gross receipts taxes on public utility companies, and also increased its tax rates on the gross income of unincorporated businesses. Illinois imposed a new 3 percent tax on hotel and motel bills. Vermont increased its motor vehicle excise tax from 2 percent to 3 percent, and also made permanent its 3 percent tax on meals and rooms which had been scheduled to expire on June 30, 1961. Income Taxes The field of income taxation was not given as much attention by the 1961 legislature as were some of the other tax areas discussed here. Nevertheless, two additional States (West Virginia and New Jersey) entered the individual income tax area, there were a number of rate increases, and a fair amount of attention was given to the question of tax withholding. Altogether, about $100 million was probably added to the States' tax collections as a result of the 1961 individual and corporation income tax legislation. Individual Income Taxes Although only seven of the thirty-four States now taxing individual incomes passed legislation in 1961 for the specific purpose of obtaining more revenue from this source, legislative activity in this field was noteworthy. West Virginia became the first State to adopt the personal income tax since 1937. (Alaska adopted its income tax in 1949 while still a territory.) Effective for the taxable year ending on or after December 31, 1961, personal income in West Virginia is taxed at the rate of 6 percent of the Federal tax on the amount of Federal taxable income identical with West Virginia taxable income. The latter is defined as Federal adjusted gross income with certain modifications. Withholding of the tax began on April 1, 1961. New Jersey enacted legislation providing for the taxation of the incomes and capital gains of "commuters" (individuals, estates and trusts who reside in New York but earn income in New Jersey, and those living in New Jersey but earning their income in New York). The new tax, which is effective for 1961 incomes and which terminates on December 31, 1970, generally conforms to the New York personal income tax law with respect to rates and provisions. In effect, this tax would have transferred a substantial amount of income tax revenue (i.e., taxes paid by New Jersey residents earning their incomes in New York) from New York to New Jersey. New York, however, has recently enacted legislation eliminating tax credits to non-residents. As a result,

revenue from the New Jersey tax will be restricted to taxes on New York residents working in New Jersey. (New York residents are allowed credit against the New York individual income tax for income taxes paid to other States.) The proceeds from the New Jersey tax, after deducting administration expenses, are to be used to aid'~ew Jersey-New York commuter transportation, and the continuation of the tax is contingent upon an annual certification of New Jersey transportation officials that a critical transportation problem exists between the two States. Five States raised their individual-income tax rates. The Alaska income tax rate, for individuals and banks required to file a Federal income tax return, has been raised from 14 to 16 percent of the total Federal tax payable on income derived from sources in Alaska. Tax rates on the higher income brackets have been increased in Delaware..Where, previously, the top rate in that State was 8 percent on net income over $8,000, three new brackets were added, with a rate of 11 percent on net incomes in excess of $100,000. Minnesota levied an additional 1 percent on adjusted gross income up to $1,000 where a taxpayer's liability under the regular rate and surtax is less than $10. However, this additional rate cannot be applied to increase the tax of such persons to more than $10. Wisconsin added another 1 percent to each of the income tax brackets, which now range from 2 percent on the first $1,000 of taxable income to 10 percent on all taxable income in excess of $15,000. A temporary 50 percent increase in the personal income tax rates has been enacted by the New Mexico legislature. The new rates, effective until December 31, 1963 (at which time they revert to their former level), range from 1.5 percent for incomes up to $10,000 to 6 percent for those in excess of $10,000. Massachusetts' temporary tax rate increase, scheduled to expire in February 1961, was extended through June 1963. New York was the only State to lower individual income taxes. A temporary 10 percent reduction in personal income tax liabilities for the calendar year 1960 and fiscal years ending in 1961 was provided. There are no plans for extending it to 1962. State income tax withholding has spread to 6 more States, making a total of 26 (including Indiana) plus the District of Columbia, that require employers to withhold income taxes from the wages and salaries of their employees. The added income tax withholding States are Minnesota, Missouri, New Mexico, Oklahoma, West Virginia and Wisconsin. (Louisiana added the withholding feature in its 1960 legislature session, effective January 1, 1961.) Indiana includes gross income from personal services under its general gross receipts tax and subjects "personal services" income to withholding. In addition to the 26 States, two

others, California and Iowa, require the withholding of income taxes of non-residents of the State, As noted above, the New Jersey income tax which, in effect, applies only to non-residents, is also subject to withholding. Intergovernmental cooperation in the income tax withholding sphere also occurred in 1961. The Federal Government, which is empowered under P.L. 587 (enacted by Congress in 1952) to withhold from its employees State income taxes, negotiated withholding agreements with the six States that adopted income tax withholding in 1961. At the present time the Federal Government has made agreements with all 26 States and the District of Columbia that themselves provide for withholding. Congressional action to authorize the Treasury to conclude similar agreements with certain cities has been pending for several years. In addition to Federal- State cooperation, New York has reached an agreement with Connecticut providing for employers in the latter State to withhold from its New York-residing employees income taxes if such firms have offices or transact business in New York. If these firms do not transact business in New York, they are permitted to withhold, at their option, and at a minimum must supply the names and addresses of their New York employees. In another cooperative action, the State treasurer of Pennsylvania now withholds income taxes imposed by first class cities (Philadelphia) from State em'ployees working or residing there. Corporate Income Taxes State legislative activity in the corporate income tax sphere was relatively light in 1961. Thirty-six States continue to derive revenue from this source, with the last State adoption of the tax being that of New Jersey in 1958. General increases in corporate rates were enacted by only three States. Connecticut raised its tax rate from 3.75 to 5 percent of corporate income, and increased the minimum tax from $20, or 1.9 mills per $1,000 of invested capital, to the greater of $25 or 2.5 mills per $1,000 of invested capital. Minnesota extended through 1962 its temporary tax of 1.8 percent, and increased both this tax and its 4.5-percent primary tax rate by another 10 percent. And, the corporate income tax rate in New Mexico was raised from 2 to 3 percent, effective March 31, 1961, and continuing until December 31, 1963, (when it reverts to 2 percent). Temporary tax rates were extended through June 1963 by Massachusetts, including the additional 3-percent tax and 20-percent surtax on corporate incomes. A 4-percent tax rate applicable to the incomes of domestic building and loan associations was imposed by North Dakota, but Alaska exempted from its corporate income tax national banks. Oregon excluded from its tax certain corporations providing facilities for elderly persons.

State corporate income tax rates currently range from 1.75 percent (New Jersey) to 10.23 (Minnesota), with the rate of 5 percent the most frequent. Thirty of these, including the District of Columbia, are flat rates and seven are graduated. Other Taxes Aside from the sales and income tax enactments described above, there was little additional tax legislation designed to increase State tax revenue. Connecticut imposed a 30 percent surtax on successions and transfers - the only action in the death and gift tax area calculated to increase significantly State revenue from that source. South Carolina repealed its inheritance and "pickup" estate taxes and replaced them with a new estate tax (still including the "pickuptt feature) providing for rates of 4 percent on the first $40,000 of taxable estates, 5 percent on the next $60,000, and 6 percent on all amounts above $100,000 of taxable estates. Several States, including Alaska, North Dakota, and Washington increased their motor vehicle registration fees. Connecticut repealed its highway use tax on interstate buses and replaced it with a "road" tax on buses, trucks, and tractors. The new "road" tax is based upon the amount of motor fuel purchased outside the State and consumed on Connecticut highways, at six cents per gallon (the regular State gasoline tax rate). Indiana removed motor vehicles and mobile homes from the general property tax and imposed a 2 percent special property tax on such vehicles in lieu of the general property tax. However, the law was invalidated by a decision of the State supreme court on January 30, 1962.

- 11 - TABLE I. -- State Tax Collections, 1961 Tax Sources Amount (in millions) Percent of Total Percent Increase 1960 to 1961 Sales and gross receipts taxes: General sales and gross receipts Motor fuels Tobacco products Alcoholic beverages Insurance Public utilities Other Income taxes : Individual Corporate License taxes: Motor vehicles Corporate Alcoholic beverages 0 t her Property taxes Death and gift taxes Other taxes Total tax collections Source: Bureau of the Census, State Tax Collections in 1961. Data are preliminary for State fiscal years ending in the 12-month period July 1, 1960 - June 30, 1961, except that for two States whose 1961 fiscal years closed after June 30, the data are for the 12-month period ending June 30, 1961.

TABLE 11. -- State Tax Rates, Selected Taxes, January 1962 Net Income Individual Corporate Retail Motor Fuel Cigarettes (per State (range of rates) Sales (per gallon) standard pack) Alabama Alaska Arizona Arkansas California Colorado 3/ 3-9 2 6 - - - 5 Connecticut - - 5 3.5 6 5 Delaware 1.5-11 5 - - 6 5 Florida - - - - 3 7 5 Georgia 1-6 4 3 6.5 5 ~awai i Idaho Illinois Indiana Iowa Kansas 1.5-5.5 3.5 2.5 5 4 Kentucky 2-6 5-7 3 7 2.5 Louisiana 2-6 4 2 7 8 Maine -- -- 3 7 6 Maryland 7/ 3 5 3 6 6 - - - Massachusetts 81 3.075 6.765 -- 5.5 6 Michigan -- -- 4 6 5 91 1-10.5 10.23 -- Minnesota 5 7 Mississippi 2-5 2-5 3 7 6 Missouri 1-4 2 2 5 4 -- -- -- 101 4.25 -- -- Montana 6 8 Nebraska 7 4 Nevada -- -- 2 6 7 1-7 4.5 - - New Hampshire 7 111 3 New Jersey - 1 2 2-10 131 1.75 - - 6 7 New Mexico 1.5-6 3 2 6 8 New York 6 5 North Carolina 3-7 6 North Dakota 1-11 3-6 2 6 6 -- -- 3 7 5 Ohio 2-10 121 5.5 - - 3 7 - -

TABLE 11. - Cont'd State Tax Rates, Selected Taxes, January 1962 1 Net Income I I I Individual Corporate Retail Motor Fuel Cigarettes (per State (range of rates) Sales (per gallon) standard pack) Oklahoma 1-6% 4% 2% 6.58~ Oregon 3-9.5 6 -- 6-7 c - - - Pennsylvania -- 6 4 7 6 Rhode Island 6 3 7 6 South Carolina 2-7 5 3 7 5 South Dakota -- -- 2 6 5 Tennessee lo/ 6 3.75 3 7 5 -- Texas -- 2 5 8 Utah 1-5 4 2.5 6 4 Vermont 2-7 -5 5 -- 6.5 7 Virginia Washing ton West Virginia Wisconsin Wyoming District of Columbia 2.5-5 5 2 6 2-11 Sixteen percent of taxpayer's Federal income tax liability. 2/ Eighteen percent of the corporation's Federal income tax liability. - 3/ A 2% surtax is levied on income in excess of $5,000 from intangible personal property. 4/ In Hawaii County the rate is 8 cents. 5/ The statutory rate is 20% of the wholesale price, - 6/ A gross income (or transaction) tax on the gross receipts of all taxpayers from sources within the State. 71 Investment income over $500 is taxed at 5%. - 8/ Annuities are taxed at 1.845%; interest and dividends, and capital gains on intangibles at 7.38%. - 91 A 15% surtax is levied for years starting before 1963. Also, there is an additional tax of 1% on the first $1,000 of adjusted gross income where net income tax plus surtax does not exceed $10, 10/ - Applicable only to interest and dividend income (excluding interest on savings deposits for New Hampshire taxpayers). 11/ The statutory rate is 15% of the retail price. IT/ - Applicable only to income earned by New York residents in New Jersey and by New Jersey residents in New York. See page 7. 13/ All corporations pay an additional tax on net worth. 1 Plus a tax of t mill per $1 of allocated subsidiary capital. 1 Six percent of taxpayer's Federal income tax which would be imposed on Federal taxable income equal to West Virginia taxable income. 16/ - Effective Feb. 1, 1962, See page 2. Source: U.S. Bureau of the Census, State Tax Collections in 1961; Advisory Commission on Intergovernmental Relations; Tax Overlapping in the United States 1961; and Commerce Clearing House, State Tax Reporter.

TABLE 111. -- Major 1961 State Legislative Tax Changes Income Taxes State Individual 1 Corporate Alabama Alaska Arkansas Connecticut Delaware Florida Idaho Illinoi s Kansas Maine Maryland Minnesota Missouri Nevada New Jersey New Mexico North Carolina North Dakota Oklahoma Pennsylvania Rhode Island Texas Utah Washington West Virginia Wisconsin Wyoming Source: Comerce Clearing House, State Tax Reporter - Code: b = base broadened; r = rate increased; rs = selective rate increase; N new tax imposed; d = reduction in distributor's discount for affixing stamps; w = withholding