Top
With all eyes on the 2024 U.S. presidential election, overlooking this year's state and local elections could have a lasting impact on tax outcomes for clients and prospective clients. It's vital to keep watch on state elections and ballot initiatives advocating for state-level tax reform.
Below are several tax-related ballot initiatives that are worth discussing with existing and prospective clients:
- Colorado: Create a 6.5% excise tax on the sale of all firearms, firearm accessories and ammunition in the state. Firearms and ammunition are already subject to an 11% federal excise tax through the Pittman-Robertson Act, along with other state and local taxes and fees. California is the only other state to enact similar legislation. Revenue from the Firearms and Ammunition Excise Tax Cash Fund would be used to fund crime victim services, education and mental and behavioral health programs for children and veterans.
- North Dakota: Prohibit property taxes in the state except for those designed to pay for bonded indebtedness.
- Oregon: Increase the corporate minimum tax on sales exceeding $25 million by 3%, removing the minimum tax cap, and distributing increased revenue to Oregon residents who spend more than 200 days in the state.
- Washington: Repeal the capital gains excise tax imposed on long-term capital assets by individuals with capital gains over $250,000.
Bottom line: It's essential to understand the potential tax implications of state ballot initiatives and discuss the possible impact with existing and prospective clients.
Featured Insights
Source: Ballotpedia. (2024, August 19). 2024 Ballot Measures.
The Firm does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Tax laws are complex and subject to change. Investors should always consult their own legal or tax professional for information concerning their individual situation.
The views and opinions and/or analysis expressed are those of the author or the investment team as of the date of preparation of this material and are subject to change at any time without notice due to market or economic conditions and may not necessarily come to pass. Furthermore, the views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring, after the date of publication. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and its subsidiaries and affiliates (collectively “the Firm”), and may not be reflected in all the strategies and products that the Firm offers.
Forecasts and/or estimates provided herein are subject to change and may not actually come to pass. Information regarding expected market returns and market outlooks is based on the research, analysis and opinions of the authors or the investment team. These conclusions are speculative in nature, may not come to pass and are not intended to predict the future performance of any specific strategy or product the Firm offers. Future results may differ significantly depending on factors such as changes in securities or financial markets or general economic conditions.
This material has been prepared on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. However, no assurances are provided regarding the reliability of such information and the Firm has not sought to independently verify information taken from public and third-party sources.
This material is a general communication, which is not impartial and all information provided has been prepared solely for informational and educational purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.
Charts and graphs provided herein are for illustrative purposes only. Past performance is no guarantee of future results. The indexes are unmanaged and do not include any expenses, fees or sales charges. It is not possible to invest directly in an index. Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor. Any product based on an index is in no way sponsored, endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect thereto.
This image indicates content designed specifically for Financial Advisors / Investment Professionals. This material is not to be used with the public.