2019 State Tax Updates.

• Position: BY THE NUMBERS

With a groundbreaking shift in taxable nexus through the decision in South Dakota v. Wayfair, Inc., and with federal adjustments continuing to stem from implementation of the Tax Cuts and Jobs Act (TCJA), several states are moving forward with tax rate changes at both the individual and corporate levels. The updates outlined below are generally considered to be just the beginning of state-level shake-ups, as newly prominent issues such as marijuana and sports betting emerge in the business world, forcing states to consider the inevitable tax implications of both.

Arkansas

Low-income tax relief legislation went into effect, decreasing the top rate for the lowest rate schedule (income between $12,600 and $20,999) from 4.4 to 3.4 percent. The lowest bracket of the next rate schedule (filers earning between $21,000 and $75,000) will see a rate drop from .9 to .75 percent. 4.4% [right arrow] 3.4%

Missouri

A recently adopted tax reform package took effect, eliminating one individual income tax bracket and decreasing the top rate from 5.9 to 5.4 percent. Further state tax reform is slated for 2020, which will permit a corporate rate reduction from 6.25 to 4 percent.

5.9% [right arrow] 5.4%

Mississipi

A franchise tax phasedown continued with a rate reduction from 2.5 to 2.25 mills. The phasedown began in 2018 and will continue through 2028. Federal self-employment deductions by individuals are also expected to rise.

2.5 mills [right arrow] 2.25 mills

New Hampshire

Both state business tax rates were reduced. The business profits tax...