From Fortune:

Income, sales, property, and gas taxes have been cut nationwide as budget surpluses soared in the past three years. The tax reductions reflect an era of surging federal spending and inflation. However, the pandemic-induced revenue surge is now receding, leading to projected budget deficits in states like California, Arizona, Maryland, and Minnesota. The tax cuts have resulted in $13.3 billion less in general revenue this year, according to a report by the National Association of State Budget Officers. Almost every U.S. state, except for Alaska and Nevada, has joined in cutting taxes, with some making permanent reductions and others passing one-time rebates or temporary suspensions. This trend is expected to slow down as the 2024 legislative sessions begin, due to the receding and reversing revenue numbers in some states. More states may be looking to provide property tax relief if income tax cuts become less common in the next year, according to experts in the field. Wyoming Gov. Mark Gordon is proposing a $20 million expansion of a property tax relief program as part of his 2025-26 budget. But he’s also recommending the state stash more money in savings. “A realistic and conservative approach means Wyoming must strive to prepare for a future that could well see declining revenues,” Gordon said in a written budget message.



Read more: Tax cut trends across the U.S. may slow in 2024