1 / 71

STATE TAX & FISCAL UPDATE

STATE TAX & FISCAL UPDATE. Bob Pitcher VP, State Laws, ATA NAFC Annual Meeting June 17, 2014. Today’s Agenda. State & Local Government Fiscal Situation State Tax Changes Business Taxes Highway Taxes IRP, IFTA & UCR Have We Made Any Progress?. State & Local Fiscal Update.

sakina
Télécharger la présentation

STATE TAX & FISCAL UPDATE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. STATE TAX & FISCAL UPDATE Bob Pitcher VP, State Laws, ATA NAFC Annual Meeting June 17, 2014

  2. Today’s Agenda • State & Local Government Fiscal Situation • State Tax Changes • Business Taxes • Highway Taxes • IRP, IFTA & UCR • Have We Made Any Progress?

  3. State & Local Fiscal Update Some Trouble Spots • Detroit • Chicago • Rhode Island • Puerto Rico Are These Places Bellwethers?

  4. Detroit • Largest City Bankruptcy in U.S. History • Filed Under Ch. 9 in July 2013 • Corruption, Mismanagement, Population Loss, Unpaid Taxes • $18.5 Billion in Debt • Pensions the Big Issue • Bankruptcy Trial Starts July 2014

  5. Chicago • Pensions (5 funds) Dragging City Down • 36% Funded – c. $35 Billion Deficit (under GASB rules!) • State Legislature Controls the Game • Raise Taxes? • Cut Benefits?

  6. Rhode Island • Pensions Again the Problem • 58% Funded - $4 Billion Deficit (GASB) • Local Pensions All PArt of State Fund • 2011 Reforms • Litigation  Arbitration  Vote  Limbo • Union Opposition • Central Falls Bankruptcy

  7. Puerto Rico • Small Population & Economy • Subject to Federal Minimum Wage • Government Sector 20% of Employment • Debt $70 Billion – 89% of Personal Income • Junk-Bond Credit Rating – Pension 7% Funded • Not Eligible for Bankruptcy • Analogies to Greece – Bailout Coming?

  8. Are These Places Bellwethers? • Warnings, Certainly • Extreme Cases, But Suggestive Danger Signs for Others: • Unaffordable Pensions & Benefits • Bad Politics • Damaged Economies Some Places Will Follow the Same Path

  9. States Generally • Most Current Budgets in Decent Shape • Some Spending Increases, But Growth Slow • Some Recovery in Housing Prices • Oil & Gas Boom • Northeast, IL, CA Worst Off, Great Plains Doing Fine • States Not Well Prepared for Next Recession

  10. Local Governments • A Real Mix • Few Really Stressed (CA, PA) • Depends Mostly on Local Economies • Mismanagement, Population Loss the Greater Dangers, Pensions Generally Less Troublesome • Some Growth in Local Govt. Employment

  11. Government Employment • Last 18 Months: • Federal Employment Down 3-4% (Retirements) • State Govt. Employment Steady • Local Govt. Employment Up a Bit (Teachers) • Early Signs of a Flood of Retirements • Turnover Among Younger Workers Also Up • Overall Loss of Govt. Expertise Imminent?

  12. Private-Sector Employment • %age of “Real” P-S Jobs Gained, 2007-12: • ND, 25% TX, 6% SD, NY, LA, VT, <2% • All Other States Lost P-S Jobs 2007-12 • Statewide %age of “Real” P-S Jobs: • NM, 68% VA, 70% AK, 71% • MS, 72% WY, 73% AL, 74% • North Central States Have Largest “Real” P-S

  13. Long-Term Challenges • Pensions & Retiree Benefits • A Mix, But Many Places in Trouble • Reforms Coming Too Slowly • No Easy Choices • Effect on Government? • Federal Mandates • Health Care: Medicaid Consumes 23% of All State Spending – Set to Rise • Highway Program Devolution?

  14. Federalism • Increased Federal Aid to States Now • More Mandates, More Strings • Politics of Changes in Federal Spending • Potential Entitlement Fixes, Tax Reform • Some State Reforms – Enough to Help? • Similar State  Local Dynamics • Come the Next Recession….

  15. State Tax Changes • A Lot Last Year – A Lot Fewer This Year • Elections Coming Up • Few Themes Evident in 2014 Legislation • States Concerned with Highway Funding

  16. Trucks & Roads • AL property tax MS sales tax • CO sales tax MO sales tax? • GA property tax (‘13) NV fuel tax (’13) • KS property tax (‘12) NH fuel tax • MA fuel tax (‘13) PA fuel tax (‘13) • MI fuel tax? SC property tax? • MN sales tax

  17. General Taxes • IL increases??? • IN corporate income & property taxes • MO personal income & maybe sales tax • NV margin tax • OK personal income tax • TX margin tax?

  18. Update on IRP IFTA UCR

  19. IRP • Full Reciprocity Plan • IRP Membership for Mexico? • Changes in PRISM

  20. FRP • Effective for IRP Registrations Beginning in 2015 • ALL IRP Registrants Will Be Registered in ALL IRP States and Provinces • No More Estimated Distance or Fees • Fees Based, as Now, on Actual Fleet Distance Traveled • New Carriers Pay a One-Time Standard Fee

  21. FRP, cont’d. • Change the Biggest to IRP in 20 Years • In Discussion for 30+ Years • All Favorable for Industry (& States) • Greater Flexibility • Saves Fees for Permits, Added States, etc. • Simpler for States to Manage

  22. Mexican Membership • New Administration in Mexico • Mexican Carriers Beginning to See Advantages • Movement Toward Membership? • Still Some Years Off

  23. Changes in PRISM • With URS, FMCSA Drops State Check for MCS-150 Update • PRISM States to Deny Registration for Code 52 • States Can No Longer Assist Carriers with MCS Updates

  24. IFTA • Audit & Record-Keeping Rules • Taxation of Natural Gas • State Compliance with IFTA Rules • Electronic Credentials?

  25. IFTA Audit Rewrite • State & Industry Project (Similar to IRP’s) • Drafting Now Finished – 2014 Ballot • If It’s Accepted, Effective 2016 • Flexibility for Distance Records • Few Changes for Fuel Records • Should Help Eliminate Bad Audits • Some Opposition – Industry Support Needed

  26. Natural Gas • IFTA Adopted GGE Standard for CNG • States Beginning to See n/g IFTA Reports • NCWM Discussions on Metering Standards • An IFTA DGE Standard for LNG? • Reporting Dual-Fuel Vehicles • Adjustments & Confusion Continue

  27. Will IFTA Make Its Members Follow the Rules? • NJ Debacle • IFTA Dispute Process Flawed • IFTA States Seem Ambivalent • IRP Process Far Better • Industry Message to IFTA Board

  28. Electronic Credentialsfor IRP & IFTA ? • Committee Discussions Beginning • A Chance to Eliminate IFTA Decals? • What Does It All Mean? • Effect of Federal ELD Rule?

  29. UCR • States May Collect All Their Money This Year! • Administration Proposes Amendments to Act • Remove Federal Representation on UCR Board • Incorporation of UCR as Private Entity • New Board Members Chosen by Co-optation • Leave Board (States) to Set Fees • States May Like These Changes

  30. A LONG LOOK BACK & A SHORT LOOK FORWARD

  31. Where Did We Stand 30 Years Ago? • Economic Deregulation Was Recent • Interstate Trucking Was Expanding FAST • State Operating Taxes Were a Crisis for the Industry • Industry Expertise Assembled • ATA Taxation & Reciprocity Committee • NAFC Tax Committee • Western Highway Institute Tax Committee

  32. Fuel Use Taxes: The Poster Child Non-Uniform Burdensome Expensive!

  33. Non-Uniformity in: Vehicles Registration Credentials Bonding Leases Tax Reports Credits & Refunds Audit & Administration

  34. What Vehicles Had to Be Reported ? • All Commercial Vehicles • > 2 Axles • > 7,000 lbs. Empty Wt. • > 10,000 lbs. Empty Wt. • > 18,000 lbs. GVW or 7,500 lbs. Empty Wt • > 16,000 lbs. GVW • > 30 Gallon Fuel Tank Capacity & at least 16 Other Definitions!

  35. What Tax Registration WasRequired? • Annual, Biennial, or Permanent? • Any Registration Fees? One-Time or Annual? • Fees per Fleet or per Vehicle? • Licenses for Each Place of Business? • When to Be Renewed: October, December, January, March, April, or July? • Vehicle-Specific Cab Cards? • Account Numbers on the Vehicle?

  36. Credentials (DECALS!) • 1 per Vehicle – or 2? • On Left Side, Right Side – or Front? • Display Dates? • Annual, Biennial – or Permanent? • Were There Decal Fees? YOU BETCHA! Charged by 22 states

  37. Bonding • Required by 19 States • Various Amounts and Limits • Required for Refunds in c. 10 More States • Alternative Security Rarely Allowed

More Related