Several states will decide on new tax rules this election year, and voters have the chance to directly decide how their state could enforce new regulations.
“Over the past two years, we’ve seen various states use the tax code as a way to tackle economic and social problems that are occurring, either with the purpose of excluding certain goods and services to encourage growth in that sector or increasing state revenue to pay for other initiatives,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
While some states are making child care more attractive as a business option by attempting to lower or eliminate taxes on those services, others are fighting inflation by raising the minimum wage or getting rid of taxes on everyday purchases.
In Missouri, for example, voters will decide whether to exempt child care facilities from property taxation. This would also apply to properties used primarily for the care of children outside the home.
The state has long been facing a child care provider shortage. In some ZIP codes, there are more than 20 children for every seat available in a child care facility. And a 2023 Missouri Chamber of Commerce survey showed that 80 percent of members said child care kept a substantial number of Missouri residents from working.
In Nevada, voters will decide whether to approve a sales tax exemption for child and adult diapers, which could help parents as they face inflation across sectors.
Some of the measures residents are voting on concern property taxes, as well.
Arizona voters could pass a new rule that would allow property owners to apply for a property tax refund if their city does not enforce laws around illegal camping, panhandling, public urination and consumption of alcohol, among other activities that could bring down a property’s value.
Maryland Board of Elections poll workers pass by empty booths during the state primary election at a polling station in Annapolis, Maryland, on May 14. Several states have new tax laws on the ballot this November.
JIM WATSON/AFP via Getty Images
In Colorado, an amendment is on the ballot to expand the property tax exemption for veterans with a disability to veterans with individual unemployability status.
Colorado also has a measure to keep tax revenue collected above $29 million yearly from taxes on sports betting proceeds that was approved by voters in 2019. There also could be a 6.5 percent excise tax approved on firearms and ammunition suppliers. This tax revenue would then go to crime victim services and education programs.
Georgia is considering a measure to increase the personal property tax exemption from $7,500 to $20,000, and Illinois could change the state constitution to create an extra 3 percent tax on all income greater than $1 million. Those funds would then go to property tax relief for other residents.
South Dakota is making a move to address inflation by considering a ballot measure that would prohibit sales tax on anything sold for human consumption, excluding alcoholic beverages or prepared food.
“Nevada’s considering exempting diapers, while South Dakota might nix taxes on most food items,” Michael Ryan, a finance expert and founder of michaelryanmoney.com, told Newsweek. “These kinds of targeted exemptions can provide real relief for families, especially in tough economic times.”
In Oregon, all residents might receive a $1,600 rebate if voters pass a ballot measure.
“Measure 118 is a lifeline for Oregon renters facing skyrocketing costs,” Kim McCarty, executive director of Community Alliance of Tenants, said in a statement. “This rebate provides immediate relief in a volatile and often predatory housing market. For too many, a $1,600 check is the difference between a stable home and homelessness.”
To get the $1,600 in the hands of all Oregonians, however, the state would need to increase its minimum corporate tax rate after $25 million of in-state revenue by 3 percent.
“That’s an interesting approach to wealth redistribution,” Ryan said. “But businesses often find ways to pass these costs onto consumers, so the ultimate impact isn’t always straightforward.”
Experts encourage voters to look past the immediate benefits and to the larger implications of changes in tax law.
“When voting on any of these, though, it’s important to factor in all sides,” Beene said. “The immediate reaction to increased taxation is normally negative and less taxation is usually positive, but voters need to consider the economic implications of both instead of their instant emotional reactions.”
