States Bolster Coffers With New Taxes, Avoid Income Tax Hikes

States have more revenue to spend in 2020, and that’s not because they’re raising income taxes.

In fact, six states—including New York, Utah and Georgia—are slashing individual income rates, corporate income rates or both this year, according to Bloomberg Tax data. No state is raising either rate this year.

Instead, state budgets are benefiting from a healthy economy and a slew of new taxes on out-of-state online retailers, sports betting, and marijuana. States collected $276.3 billion in total taxes in the first five months of their fiscal year 2020, up $15.7 billion, or 6%, over the same period last year, ...