A compromise spending plan for the coming budget year includes more than $1 billion in tax increases, including a $500 million tax on data and IT services, and a proposal to let local governments increase the maximum local piggyback tax rate. The revenues were unveiled yesterday by the governor and legislative leaders as part of a broad budget “framework” that will guide negotiators in the next few weeks, as they rush toward the end of the session. The new revenues, coupled with an estimated $2.5 billion in budget cuts, are designed to cover a projected $3 billion deficit in the fiscal 2026 budget, and leave a reserve for fiscal 2027. The budget will also include “federal government spending triggers” that would activate in response to likely federal budget cuts.
Action alert: Your voice is needed now more than ever. Contact your legislators to tell them how these tax proposals and other pieces of legislation will impact your business and community.
