These tax changes go into effect in July
A number of states implemented a series of tax changes on Sunday, which marked the beginning of the new fiscal year.
Adjustments to tax codes are generally applied either at the beginning of the year, in January, or at the beginning of the fiscal year, according to The Tax Foundation.
From gas tax hikes to corporate tax changes, here’s what you need to know about what’s going to change and how you might be affected.
Indiana
Indiana is lowering its state-level corporate tax rate to 5.75% from the current level of 6%. The state is aiming to reduce its business tax rate to 4.9% by 2022, according to The Tax Foundation.
Meanwhile, as part of The Tax Cuts and Jobs Act signed into law in December, the national corporate tax rate was reduced to 21% from 35%.
Oklahoma
Oklahoma is one of a few states that increased its gas tax on Sunday. It raised the regular rate by 3 cents per gallon and the rate for diesel by 6 cents per gallon as part of a pay package that is intended to cover teacher pay increases.
In addition to the gas tax hike, Oklahoma raised its tax on cigarettes to $2.03 for a pack of 20.
South Carolina
Residents in South Carolina will experience a 2 cent per gallon increase in the state gas tax, to 20.75 cents per gallon as part of a law passed earlier this year. Despite the hike, the state’s gas tax remains among the lowest in the country.
This is the second incremental hike of the state's planned 12 cents per gallon gas tax increase, which will take place over the course of six years.
Tennessee
The gas tax in Tennessee rose by 1 cent per gallon for regular gasoline and 3 cents per gallon for diesel over the weekend.
Kentucky
Kentucky implemented a new sales tax of 6% in July on select services, including indoor tanning beds, veterinarian visits, car repairs, golf course fees and gym memberships.
Nonprofits will also have to charge the 6% on admissions to certain events.
The revenues are expected to be spent on public education.
Louisiana
Louisiana extended a temporary increase in the state sales tax in July, though at a lesser rate. While the state increased the rate by 1% earlier this year, that measure expired on July 1. However, lawmakers implemented a 0.45% increase on Sunday, bringing the rate to 4.45%.
Lawmakers in the state are divided over whether to call the move a tax cut or tax hike. When the temporary hike was set to expire, it would have brought the sales tax back down to 4% without lawmakers’ interference.
Massachusetts
Sales of recreational marijuana became legal in Massachusetts on July 1 for those ages 21 and over.
Marijuana sales will be subject to the state sales tax of 6.25% and an excise tax of 10.75%, which could generate more than $61 million in revenue in fiscal 2019, according to local media reports.