Lower Taxes, Less Government in States Gaining Congressional Seats

Like most things, we can’t prove causation. The interesting thing will be to see how these growing states trend in the years to come. Will they become more like their higher tax counterparts?

From ATR.org:

An updated study by Americans for Tax Reform compared states gaining and losing Congressional seats in the decennial reapportionment process and found that states gaining seats had significantly lower taxes, less government spending, and were more likely to have “Right to Work” laws in place. Because reapportionment is based on population migration, this is further proof that fiscally conservative public policy spurs economic growth, creates jobs, and attracts population growth.

The Census Bureau announced today that eight states will gain at least one Congressional seat. Texas will gain four seats and Florida will gain two. Arizona, Georgia, Nevada, South Carolina, Utah and Washington will gain one seat each. The biggest losers will be New York and Ohio – both will lose two seats – while Illinois, Iowa, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, and Pennsylvania will lose one seat each.

The average top personal income tax rate among gainers is 116 percent lower than among losers. The total state and local tax burden is nearly one-third lower, as is per capita government spending. In eight of ten losers, workers can be forced to join a union as a condition of employment. In 7 of the 8 gainers, workers are given a choice whether to join or contribute financially to a union.

Read more here

Low-Tax States will Gain Seats, High-Tax States will Lose Them

From the Washington Examiner:

Migration from high-tax states to states with lower taxes and less government spending will dramatically alter the composition of future Congresses, according to a study by Americans for Tax Reform.

Eight states are projected to gain at least one congressional seat under reapportionment following the 2010 Census: Texas (four seats), Florida (two seats), Arizona, Georgia, Nevada, South Carolina, Utah and Washington (one seat each). Their average top state personal income tax rate: 2.8 percent.

By contrast, New York and Ohio are likely to lose two seats each, while Illinois, Iowa, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, and Pennsylvania will be down one apiece. The average top state personal income tax rate in these loser states: 6.05 percent.

The state and local tax burden is nearly a third lower in states with growing populations, ATR found. As a result, per capita government spending is also lower: $4,008 for states gaining congressional seats, $5,117 for states losing them.

And, as ATR notes, “in eight of ten losers, workers can be forced to join a union as a condition of employment. In 7 of the 8 gainers, workers are given a choice whether to join or contribute financially to a union.”

Billionaire Julian Robertson Notches Tax Win For New York City Non-Residents

From Forbes.com:

A divided three-member New York State Tax Appeals Tribunal has upheld an administrative judge’s finding that billionaire hedge fund pioneer Julian H. Robertson Jr. wasn’t a resident of New York City in 2000, saving him $27 million in tax.

In a dissent, Tax Commissioner Carroll R. Jenkins said he feared the decision would create “confusion and mischief in future cases” by improperly shifting the burden onto tax collectors to prove Robertson was in the city on certain days, rather than requiring Robertson to “demonstrate by clear and convincing evidence that he was not within the City.”

The appeals decision and the $27 million hinged on Robertson’s whereabouts on just two days. According to the previously unreported 62-page decision issued last month, before taking an apartment in the city in 1996, Robertson was warned by advisors not to spend more than 183 days in the city, or he’d be taxed as a city resident—even though his legal domicile was a 10 acre estate in Locust Valley, Long Island. Being a resident would make all his worldwide income subject to the city’s stiff levy, now 3.88%. Robertson assigned his long time executive assistant to track his days and warn him when he was using up days too quickly or nearing the 183-day limit.

In 1998 and 1999, while Robertson’s late wife, Josephine, was being treated for cancer in New York City, he spent more time there and willingly paid city taxes. (She died this past June from a recurrence of breast cancer.) But despite his public support for the estate tax , Robertson, now 78, clearly didn’t’ want to pay New York City any tax he could legally avoid. He maintained he was in the city for only 183 days in 2000 and so shouldn’t be taxed as a resident that year. (Tiger Management, Robertson’s firm, has its offices on Park Ave. But in 2000, Robertson was closing down his own hedge funds and didn’t have to be at the office every day.)

Cash-Strapped Calif. County Approves Hospital Tax

From the WashingtonPost.com:

Voters in a rural California county are in such a dire financial condition that it's seeking a state bailout.

The vote gives Modoc County, in the state's northeastern corner, a much-needed infusion of cash and likely means it will avoid bankruptcy.

Voters approved two measures - one to impose a $195-a-year parcel tax to keep their struggling hospital, and another to create a hospital district to oversee its operations. The tax required two-thirds voter approval.

Local officials said they needed the tax because the hospital's operating costs have overwhelmed county finances. They had hired a bankruptcy attorney and have requested a $12.5 million loan from the state.

State finance officials are considering the request and said they want to be assured the county could repay the loan. The vote results make that more likely.

Coming Up: Tax-Free August Shopping

The new school year is just around the corner, and for millions of parents and students that means back-to-school shopping. Luckily, several states will be offering sales tax holidays in August. This year there are 17 states with tax holidays that apply to a number of items including clothing and basic school supplies. Forbes.com put together a good summary of the states offering tax-free shopping. I have included a portion of their article below, but you can find the full text at Forbes.com.

Within the next five weeks 17 states with sales taxes will be offering "holidays" during which certain purchases can be made tax-free. Take a trip to the right mall at the right time and you can save up to 10% in tax (including local levies) and possibly more, since some retailers offer sales timed to capitalize on the attention sales tax holidays draw. (Five states--Alaska, Delaware, Montana, New Hampshire and Oregon--have no general sales taxes.)

The timing for these holidays is no accident. The average family will spend $606 on back-to-school shopping for K-12 students this year, up from $549 last year, according to the National Retail Federation. In fact, back-to-school is the second-biggest consumer spending event for retailers, behind the winter holidays.

Mississippi kicks off the tax-free shopping season on Friday, July 30, with a two-day period when clothing items costing less than $100--but not school supplies--will be free from the state's 7% sales tax. In August 15 states will hold holidays, generally covering such items as school supplies, clothing costing less than $100 per item and in some cases, computers. In high-income Connecticut, clothing and footwear priced at up to $300 will be exempt from the state's 6% state tax.

Sales tax holidays aren't all aimed at back-to-school shopping, however. In Louisiana, on Aug. 6 and Aug. 7, shoppers can buy all sorts of items, including furniture, costing up to $2,500 free of state sales tax. Then in September, at the start of dove hunting season, the state will offer a special sales tax holiday for hunting supplies. (Guns, ammunition and off-road vehicles, but not hunting dogs, are exempt.) South Carolina also will hold a "Second Amendment" holiday, exempting handguns, rifles and shotguns from sales tax on the Friday and Saturday after Thanksgiving--during deer hunting season

Proposed Florida Tax Relief Amendment Under Attack

A tax proposal on Florida’s November ballot is causing quite a stir, because opposition feels it is unclear and poorly written, which would confuse voters. If passed, the law would provide an extra property tax break to some homebuyers. However, both labor unions and taxpayer groups are opposing it.

According to the Associated Press, a Tallahassee judge has scheduled a final hearing Thursday in the lawsuit seeking to remove the Amendment from Florida's November ballot.

The proposal, which the Legislature approved last year, would give people who have not owned a home for at least eight years an added — but temporary — homestead exemption on primary residences purchased on or after Jan. 1, 2010.

The Florida AFL-CIO and Jacksonville resident Brian K. Doyle say in their lawsuit that the title and summary are flawed because they don't mention the purchase date.

The plaintiffs also argue the title says the added exemption is for "new homestead owners" and the summary refers to "a first-time homestead" despite the eight-year provision that allows previous homeowners to qualify.

Doyle would not qualify for the tax break and many union members are government employees paid from property taxes that would be cut by the amendment.

In a written response, the state says the title and summary accurately describe the proposal's chief purpose and that the purchase date is the kind of detail not required by law.

Hawaii's Tax Revenue Slips In Recent Fiscal Year

Despite hopes that this would be a year of recovery, the state of Hawaii saw a drop in tax revenue this past fiscal year. Some officials believe this may be an inaccurate calculation, because some tax returns were withheld until the new fiscal year, so not all data has been collected.

According to the Associated Press individual income tax collections rose 14.5 percent in the fiscal year that ended June 30, compared with the same period a year earlier. Similarly, corporate income levy receipts increased 10.2 percent.

Moreover, the state's hotel tax collections rose 6.4 percent in fiscal year 2010.

At the same time, however, general excise tax receipts fell 4.4 percent, an indicator that consumer spending is still lagging.

Collectively, the state's general fund revenue dropped 0.5 percent for the fiscal year, the tax department reported.

The agency cautioned, though, that some tax refunds that normally would have been paid by June 30 were held back until the start of the new fiscal year, a moneysaving move instituted by Gov. Linda Lingle.

Recent State Taxing Trends you Should Know About

As numerous state and local government agencies struggle with their budgets, many have taken to new taxes, or tax increases to makeup for lost revenue. Whenever a state is able to collect a decent amount of funds because of a new tax law change, other government agencies are quick to notice and enact a similar tax increase of their own. To help the readers of my blog stay informed on taxes they might have to pay down the road, I have compiled the following list of recent state taxing trends to be aware of.

Cigarette Tax Hikes

Taxes levied on cigarettes and other tobacco products are not new, but recently a handful of states have been increasing their cigarette tax rates. As I explained in this blog entry last month, New York has the highest tax on cigarettes and with recent increases the state levies an estimated $4.35 on every pack. Additionally, other states have been increasing tobacco taxes as an easy source of revenue. South Carolina – a state with a long history of tobacco farming – has even increased the taxes on cigarettes from 7 cents, to 50 cents per pack. The governor vetoed the tax law, but legislators had enough votes to override the veto. As local government agencies continue to look for ways to increase revenue, you can expect to see more cigarette tax increases over the next few years.

Other Sin Taxes

Taxes levied on cigarettes and other tobacco products, commonly referred to as “sin taxes,” also include taxes on other products that legislators consider bad for your health such as alcohol or sugary beverages. In addition to tobacco taxes, you are likely going to see other sin tax increases. The federal government has helped start this trend with their new tanning tax, and the state of NY already considered a soda tax (although lobbyists successfully defeated this new tax).

Amnesty Programs

Although not a new tax increase, local amnesty programs are something you should be aware of. The city of Philadelphia recently executed an unpaid tax amnesty program, where delinquent taxpayers could pay the taxes they owed, and only half of the interest that would normally be due. Philadelphia’s program was extremely successful – estimates predict around $25 million in additional revenue for the city – and because of its success you can bet that other state and local taxing agencies will launch amnesty programs of their own.

Digital, Non-Tangible Property

One of the largest trends in state sales tax laws is likely to be on digital, non-tangible property. Historically, excise taxes are only levied on tangible property, but as the need for tangible products diminishes, local governments are expected to begin charging a tax on electronic transmissions. Therefore, when you go to purchase a game, mobile app, or even an Mp3 on iTunes, you might have to pay a local sales tax. Most states have sales tax laws that were written long before today’s “digital age,” and legislators are looking for ways to generate revenue from digital sales.

The “Amazon Tax”

In 2008 the state of New York implemented an “Amazon Tax,” which targeted out-of-state retailers such as Amazon.com and Overstock.com. Both popular online retailers actually challenged the tax law, but the courts sided with New York. The result was a tax on in-state businesses that show ads linking to a retailer’s site, and has supposedly generated additional revenue for the state. As such, other states including California, Connecticut, Maryland, North Carolina, and Tennessee are considering similar tax laws.

7 States that Still Owe their Citizens Refunds

Last week the Roni Deutch Tax Center – Tax Help Blog posted a great new article on the seven states that still owe their citizens refunds. The list includes Hawaii, New York, and North Carolina, among others. You can find a snippet of the article below, or read the full story here.

1. Iowa

Like many local governments, the state of Iowa has had their fair share of financial problems due to the recession. Fortunately, the largely agricultural state has managed to bounce back rather quickly compared to other struggling states. In order to get their budget in check, Iowa has used a number of tactics to cope with their financial problems, including a slight delay in the payment of tax refunds. The state’s revenue department is now assuring taxpayers that they have begun processing returns and will mail out refunds as soon as possible. If you are an Iowan taxpayer still awaiting the arrival of your tax refund, click here to check its status.

2. Rhode Island

Thousands of taxpayers in Rhode Island have been patiently waiting for their tax refund. When the residents were told their tax refund might not arrive until the end of the fiscal year, so many taxpayers became upset and the state legislators have introduced a bill that would move up the late-interest fee date—the taxpayers will now get compensated for the inconvenience.

3. Hawaii

Hawaii's economy was hit hard in the recession. The state’s unemployment rates are at the highest levels in over 30 years and personal bankruptcy rates have soared. Hawaii has long been considered one of the best vacation spots in the country, but tourism has slowed down since the recession began and the state government was forced to delay payment of state tax refunds due to a lack of revenue. Fortunately, the local economy is improving and the state government began sending out refunds at the end of May. Residents of Hawaii can visit this site to see the status of their refund.

NY: Get Ready for $11 a Pack Cigarettes

Yesterday legislators from New York passed a bill that will levy an additional $1.60 in excise taxes on every pack of cigarettes sold in the state. The new tax is scheduled to take effect July 1^st, and will increase the total taxes on a pack of cigarettes to $11. Check out the following CNNMoney.com article on this recent development.

New York City smokers already pay the highest cigarette taxes in the nation, but a new state law will push those taxes even higher this summer.

The state legislature on Monday approved a bill adding an additional state tax of $1.60 to every pack sold, effective July 1. This bill, which was signed by Gov. David Paterson on Monday, will raise the state tax to $4.35 per pack.

New York City smokers pay an additional municipal tax of $1.50 per pack, for a current total tax of $4.25 per pack. That's the highest state-local tax whammy in the country, according to the Campaign for Tobacco-Free Kids. Chicago is the runner-up, at $3.66 per pack.

This new tax increase means that smokers in the city will pay $5.85 per pack in taxes. This drives the average local price up to nearly $11 per pack, according to some estimates.

The tax hike is aimed at generating an additional $440 million in 2010-2011 tax revenue to support healthcare programs.

The bill also requires that taxes to be imposed on cigarettes sold at Indian reservations, including the Shinnecock Indian Nation, which was recently recognized by the federal government.

How to Find a Low-Tax Place to Retire

For most of us “retirement” means lounging in warm weather, relaxing, and never having to work again! None of us want to pay higher taxes now; so why would we in our retirement?

USnews.com shares an article that goes over major taxes and tax breaks you should take into consideration when deciding to retire: Social Security, Pensions, Income Tax, Property Tax and Sales Tax. Read what they had to say:

Social Security. Most states no longer tax Social Security benefits. Some 35 states don't require residents to pay tax on Social Security income, according to an analysis by tax publisher CCH. Missouri and Iowa are in the process of phasing out their Social Security taxes. And Kansas residents with adjusted gross incomes of $75,000 or less are exempt from paying taxes on their Social Security checks.

Pensions. The tax treatment of pension income varies considerably from state to state. Some states, such as Pennsylvania and Mississippi, exempt all pension income from taxes. Other states exempt a portion of specific types of pension income. In Michigan, for example, all federal pensions and public pensions from specific states are totally exempt from tax. Private pensions were tax-exempt up to $45,120 for individuals and $90,240 for couples in tax year 2009. "When the economy was doing well, pension tax thresholds were moving out further and further, but now we're seeing a freeze on these threshold amounts," says Kathleen Thies, a CCH state tax analyst.

Income tax. Retirees who haven't saved enough to finance their desired lifestyle may need to work during their golden years. If your retirement plans include a part-time job, take a look at state income taxes. Seven states have no income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. And two states, New Hampshire and Tennessee, tax dividend and interest income only.
Great advice: While states without an income tax can seem like an obvious choice for retirees, it's also important to look at property and sales taxes, which tend to be higher in income tax-free states. "If you're thinking of retiring in four different places, figure out the total tax cost in all the places and then you can make an effective comparison," advises Paul Erickson, a professor of accounting at Baylor University. "The property tax and sales tax could be higher than what you paid on income tax."

Property tax. The median property tax paid in the United States in 2008 was $1,897, according to a Tax Foundation analysis of Census Bureau data. But taxes paid ranged from a median of just $188 in Louisiana to $6,320 in New Jersey. "Most states give residents over a certain age some type of a break on their property taxes," says Rob Shrum, state affairs manager for the Tax Foundation. Some counties in Florida, for example, allow permanent residents age 65 and older within certain income limits a tax exemption of up to $50,000 of the value of their primary residence. Widows and widowers also get an extra $500 property tax exemption in Florida. Contact a state's department of revenue to inquire about property tax breaks for seniors.

Sales tax. Many cash-strapped states have been increasing their sales tax to raise needed funds. Seven states increased their sales tax rate in 2009, according to Vertex Inc. research. The average sales tax rate in the United States now stands at 5.5 percent. It may also be worth looking at the types of items and services that sales and excise taxes apply to. "Typically elderly people will be purchasing less cars or furniture or big-ticket items than someone with a growing family, but they still need to purchase food and clothing," says John Minassian, vice president of content development for Vertex Inc.

There are five states that levy no sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. States with low taxes for shoppers include Colorado (2.9 percent) and Georgia, Hawaii, Louisiana, New York, and Wyoming (all 4 percent). California has the highest sales tax in the country at 8.25 percent in 2010.

Questions for the Tax Lady: June 14th, 2010

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: Roni, I know that the federal estate tax is on hiatus this year. However, are there any state tax agencies that will collect an estate tax?

Yes. There are plenty of states that do enforce an estate tax (Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey, Ohio, Oklahoma, Pennsylvania, Rhode Island, Tennessee, and Wisconsin). However, the rules and rates vary for each state. If you live in one of the states listed above then I highly recommend speaking with an estate-planning attorney in your state.

Question #2: Will an accepted Offer in Compromise remove a bank levy?

An accepted Offer in Compromise will resolve your back tax liability with the IRS once you paid the amount offered in compromise. Once your back tax liability is resolved, the IRS will not pursue collection activity against you—this includes bank levies. What you need to know is that the Offer in Compromise process is lengthy and because and you only have 21 days to release a bank levy, filing an offer in compromise for the purpose of releasing a bank levy may not be the wisest choice. For more information regarding how to get tax levies released, check out this blog entry on the RoniDeutch.com Tax Relief Blog.

Philly Says Tax Amnesty Has Raised $7 Million-Plus

Philadelphia has 2 ½ weeks left in their tax amnesty program, and it has reportedly been a major success. The city claims they have already collected over $7 million. As this article from Business Week explains, the program began May 3 and will end on June 25.

Under the terms of the program, all penalties and half the interest owed are being waived.

Officials said Tuesday they had received 9,400 applications from tax delinquents seeking to take part in the amnesty. When the program started, revenue commissioner Keith Richardson said officials hoped to bring in about $30 million.

A similar state tax amnesty program began April 26 and runs through June 18.

Film Credits Losing Their Appeal

Hollywood handouts may soon be a thing of the past. For decades some states have been offering “film credits” to entice directors to shoot movies within their borders. The theory behind this is that film production will boost the local economy and create jobs for local residents. And Hollywood certainly enjoys the preferential tax treatment.

Unfortunately, according to The Tax Foundation, these credits do not pay off for the state. The credits are often overly generous -- Michigan offered a 42% production credit -- and stimulate far less economic activity than proponents claim. Any jobs that are created are temporary in nature and do not lead to any long-term betterment for residents.

According to the Tax Policy Blog, Michigan, Iowa, Arizona, and New Jersey are all suspending their film tax credits. Considering the dire state of many states’ economies and budgets, I would not be surprised to see more states following suit.

Read more about film tax credits here and see Hollywood’s response here.

Summer Tax Institute at the University of California, Davis

While most people aren’t likely to associate the warm summer season with taxes, many tax professionals certainly are. The twentieth annual Summer Tax Institute is scheduled for June 14-17, 2010 in California. The institute is an educational program of the Center for State and Local Taxation.

The Summer Tax Institute is an intensive, 4-day educational program for professionals that attracts attorneys, accountants, state tax officials, tax directors, tax managers, and others seeking expertise in the area of state and local taxation. A certificate of completion (for continuing education purposes) is provided at the end of the program.

The program is said to be highly successful. According to the UC Davis Summer Tax website, www.summertax.org, it states that in written evaluations it has been indicated that over 95 percent of the participants would recommend the Institute to others. Also, students come from both the public and private sectors and represent accounting firms, law firms, state agencies, and private industry from throughout the country.

The site also boasts that tuition includes course materials, daily continental breakfast and lunch, a welcome reception on Monday night, and an excursion to the wine country for “dinner amid the vineyards” on Wednesday evening. It looks like the Summer Tax Institute reaches enrollment capacity most years, therefore, early registration is strongly recommended. What are you waiting for tax professionals?!

‘Dancing’ stars having tax troubles

We’ve seen it so many times that it may not even shock you anymore: Celebrities that owe back taxes. One of the newest additions to the “Celebrities with tax debts club” is Grammy Award-winning singer Macy Gray, who competed last year on Dancing with the Stars. Ms. Gray owes more than $50,000 in delinquent state taxes. Ms. Gray is trying to make right on her $50K tab and has set up a payment plan with California Tax franchise Tax board.

Shannen Doherty, unfortunately, has also joined the club. Shannon owes over $200,000 to the IRS and just over $44,000 to California.

Read the full blog post about Doherty here.

Bill Gates Sr. on Raising Taxes

According to an interview in Bloomberg News, Microsoft founder Bill Gates’s father, the retired Washington State lawyer Bill Gates Sr., wants his son to pay more in state income taxes. Mr. Gates Sr. supports a Washington State initiative to impose a state income tax on individuals earning more than $200,000 a year and couples earning more than $400,000. More specifically, individuals would pay a 5 percent tax on income over $200,000 and 9 percent tax if they earned over $500,000. Couples would pay 5 percent over $400,000 and 9 percent if they earned a combined income over $1 million.

According to the Department of Revenue for Washington State, Washington doesn’t collect personal income taxes. However, persons that engage in business in Washington State are subject to business and occupation and/or public utility tax. “Poor people and middle-income people are paying too much to support the state, and rich people aren't paying enough,” Mr. Gates Sr. stated in his interview.

I agree with the editor of FutureofCapitalism.com, “if Mr. Gates Sr. wants to pay more in on a voluntary basis that is one thing, and like David Koch points out, it will mean he has less to give away to charity.” This would also apply to all others above the $200,000 threshold. Other opponents to this initiative and higher taxes say taxes like these will kill jobs.

Initiative 1098, as it is called, was co-authored by the Economic Opportunity Institute, a non-profit group in Seattle, and has drawn funding from the Service Employees International Union. Supporters must collect more than 240,000 valid signatures by July 2 to qualify for the November ballot.

Group Proposing Nevada Tax, Government Changes

From the Associated Press:

A study group appointed by majority Democrats in the Nevada Legislature is proposing sweeping changes to raise taxes and reshape state government to improve the quality of life in the state over the next 20 years.

A preliminary report due for discussion Friday by the 20-member Nevada Vision Stakeholders Group offers hundreds of goals — but few specifics about how to reach them. The legislation creating the group called for recommendations but left it to legislators to figure out how to change taxes and implement the goals.

Republican Gov. Jim Gibbons quickly dismissed the proposals to change Nevada's tax structure and diversify an economy now largely based on tourism and mining.

"You surprised?" Gibbons scoffed.

Gibbons vetoed a measure last year to allow the Legislature to spend money to hire a consulting firm to review Nevada's revenues and spending, and to work with a citizens group to create a plan to build a better state over the next 20 years.

Gibbons had predicted the results would include tax increases that will scare away businesses that want to relocate in the state.

"These companies already are bypassing Nevada because of the uncertainty about our future tax structure," Gibbons said. "It is affecting our ability to recruit businesses."

Tax Foundation: Tax Revenues Fall in 45 States

According to a recent report from The Tax Foundation, state tax revenues fell by nearly 9% in 2009, compared with 2008. There were 45 states that collected less tax revenue, and only five that saw increased tax revenue. Those five states that saw increases are:

1. South Dakota: 0.9%

2. Iowa: 1.3%

3. Oregon: 1.9%

4. North Dakota: 4.3%

5. Wyoming: 13.9%

As you can see, Wyoming was the only state that saw double-digit increases. On the other hand, here are top 10 states with the largest tax revenue declines:

1. Alaska: 51.9%

2. Arizona: 19.7%

3. South Carolina: 16.8%

4. New Mexico: 15.1%

5. California: 15.0%

6. Idaho: 14.1%

7. Virginia: 12.8%

8. Connecticut: 12.1%

9. New Jersey: 11.9%

10. Utah: 11.9%

Filmmakers Flock To Forum On State Tax Credits

From LATimes.com:

Question: How do you pack a theater with jaded movie industry professionals?

Answer: Show them the latest hot information on film tax credits. Nearly 200 people crammed into an auditorium at the Landmark Theatre in West Los Angeles recently to learn the latest skinny on the kind of topic that would set an accountant's heart aflutter.

The filmmakers, production executives and bankers were attending the Spring Fling Production Incentives Symposium, hosted by the aptly named Incentives Office, a Los Angeles firm that helps filmmakers and lenders navigate the welter of tax credits and rebates.

Despite the economic downturn that has left many states with staggering deficits, the across-the-country rollback in state tax incentives that some anticipated has yet to occur. Although some states have reduced or even suspended their programs, others, such as Florida, have greatly expanded their programs. More than 40 states still offer some form of financial enticement to filmmakers.

"The fact that these states are continuing their programs is an indication they are working," said Jeff Begun, a partner in the Incentives Office.