BGOV OnPoint: New Taxes and Tech Rules Proliferate Across States

A majority of state legislatures have gaveled out as of the end of May, with nearly every state adjusting their tax code to address budget shortfalls and the 2025 Republican federal tax law.

Many states levied taxes on new goods, services, or emerging markets. Illinois enacted new taxes on cryptocurrency, prediction markets, targeted advertising, and social media platforms, following Kentucky’s first-in-the-nation tax on prediction markets and Utah’s tax on targeted ads. South Carolina and Iowa taxed vape cartridges. Meanwhile, Hawaii, Washington, and Maine passed new taxes on incomes over $1 million.

Prediction markets were further targeted in Minnesota, which enacted ...