State Tax Updates in 2021.

• Position: BY THE NUMBERS

After 2020 brought about fewer tax changes due to shortened legislative sessions amid the COVID-19 pandemic, several states implemented significant updates to their tax codes this year. As highlighted in the Tax Foundations article, "State Tax Changes Effective January 1, 2021," many of those changes were born out of laws that were adopted before 2020 but have January 2021 effective dates. Below are some figures tied to the notable corporate tax-related adjustments now in effect this year.

To see the Tax Foundation's thorough breakdown of state tax changes in 2021, including a handful of retroactive changes prompted in 2020, visit www.taxfoundation.org/2021-state-tax-changes.

Arizona

Arizona reduced its economic nexus threshold for sales tax collection by out-of-state sellers to $100,000. Adopted in 2019, Arizona's threshold was initially set at $200,000 and was then lowered to $150,000 for 2020.

Arkansas

In its third phase of a series of tax reforms, a process that began in 2019, Arkansas reduced its corporate tax rate from 6.5% to 6.2%. In addition, the state's net operating loss carryforward period increased to 10 years, up from 8 years in 2020.

Connecticut

Connecticut began phasing out its franchise tax, reducing the rate from 3.1 mills to 2.6 mills per dollar of...