No. Nyett. Nej. Not gonna happen. 

To what question was the TX Attorney General repsonding?Chambers County asked to use sales & use tax revenue to fund the position of county fire marshal and safety coordinator because the Tax Code says it can be used for health and safety.

Why can’t sales and use tax revenue be used like this? Fire Marshall and Safety Coordinator sounds like health and safety? Chapter 324 of the Tax Code ties health and safety to disease prevention.

What would Chambers County need to do legislatively? Change Section 324.081 of the Tax Code to include fire marshalls and safety coordinators.

Texas Attorney General Opinion KP-0162

The opposition to ESAs in New Hampshire point to these issues with the legislation:

• New Hampshire’s proposed Educational Savings Account program would not be housed in the state educaiton agency and would be operated by a private scholarship organization
• Are there adequate oversight mechanisms?
• The fiduciary responsibility for the tax revenues & whether the Legislature is meeting its fiduciary duty

SB 193 New Hampshire (2017)

Concord Monitor | Accountability concerns arise over education savings account bill

Jerry Albright, the new chief investment officer 

Jase Auby, deputy chief investment officer with oversight responsibility for the fund’s public and private market investments

James Nield, managing director and chief risk officer

Dale West, head of global public markets

Sylvia Bell,  newchief operating officer, a new that consolidates operational functions within the TRS investment unit

Pensions & Investments | New executive team named for Texas Teacher Retirement System

Arizona voters will decide in November whether to expand their voucher program.

If approved, the Arizona voucher program would expand to every student under the terms of SB 1431.

Arizona Central | Arizona voters will have a say in school-voucher expansion, but court fight looms

Arizona SB 1431  (2017)

Hawaii has been working on a new rail line to keep commerce flowing. Its a deal that died during a regular session, but passed in a 5 day special session in August.

To fund the project, the top lawmakers agreed to these tax terms and kept all legislators fully apprised to move the deal fast:

• use specific numbers on the project and in the revenue generating plan:
  • use only the numbers of Hawaii Department of Budget and Finance and not lobbyist provided numbers
  • total revenue generated for the project: $2.4 billion over 13 years
  • $1.046 billion from a 0.5% general excise tax charged on Oahu taxpayers
  • $1.3 billion from hotel guests statewide via a 1% increase in the hotel room tax
  • Extends by 3 years the 0.5% general excise tax & increases the hotel room tax to 10.25 percent from 9.25 percent for 13 years.
• require certain levels of transparency
• require a timeline & sunset provisions on the taxes, which if not adhered to kills the project

Honolulu News  | How the Legislature’s ‘Big Five’ Crafted A Deal To Rescue Honolulu Rail

Los Angeles will be hosting the 2028 Olympics and the Clippers need a new stadium. What is a state to do? Pretend we’re working in a cartel cocaine processing room and sampling our own product? Yes, in a way, by expediting the permiting process to build stadiums more quickly.

How is the bill expediting the process?

• By exempting from full environmental review any “rail, bus, or transit project connected to the 2028 Olympics, along with expediting environmental challenges to construction of the Clippers arena in Inglewood.”
• Allowing for easier eminent domain for the Clippers stadium- except when it comes to residential property. Commerical property owners beware.

California Eminent Domain Report | New Bill Aims to Streamline LA Olympics Transit Projects & Clippers Arena

California SB 789 (2017)

The Real Deal Real Estate News | State bill would exempt projects tied to 2028 Olympics from CEQA

Denmark largest commerical pension has not backed off alternatives, it has stepped up investments in alternatives–infrastructure and unlisted, not publicly traded, companies.

In the past year it increased latnerative investments by 43%. In 3-4 years, Denmark intends to triple its investment in alternatives. The standards by which they measure investment choices:

• “Each investment must compete with what can be done in the listed market”
• Alternative investments are international- solar parks in Great Britain, the largest parking lot operator in the U.S. 

Reuters via Nasdaq | Leading Danish pension fund to keep faith in alternative investments

A fantasy sports themed restaurant in Virginia ill feature Virginia Online Fantasy Sports and offer special contests and events for restaurant patrons.

Richmond Times Dispatch | Fantasy-sports themed restaurant and website aiming to be a ‘destination’ opening in South Richmond

California is considering Assembly Bill 249  which would require political ads to include a disclosure of the top 3 contributors over $50,000 behind any and all political advertising.

Sacrmento Bee | Who paid for that political ad? Bill aims to spotlight mysterious funders

Philadelphia’s soda tax, including diet soda, has had its revenue estimates revised down by $6.7 million.

3 Reasons revenues are below estimates:

• tax avoidance due to consumer mobility
• the soda tax made beer cheaper than soda
• news reports of  “harm to local manufacturing and convenience store workers and reductions in consumer choices”

Tax Foundation | Soda Tax Experiment Failing in Philadelphia Amid Consumer Angst and Revenue Shortfalls

New York Times Connects  the Texas Economic Development Act to corporate disaster contributions  with these numbers:

• $2 Billion in Property Tax Credits have been given to corporations in the Houston area
• Recipients of the $2 Billion in property tax credits and/por Texas Enterprise Funds inlcude Dow Chemical, Exxon Mobil, Chevron, Fairway Energy Partners & Amazon
• Hurricane Harvey Diaster Recovery Efforts have been bolstered by $1 Million contributions by Chevron, Exxon, Amazon
• Hurricane Harvey Diaster Recovery Efforts have been bolstered by $10 Million contributions by Verizon

NY Times | Houston Loves Big Business. How Much Should Big Business Now Love It Back?

Disclosures and transparency occur fast and furious even in emergencies.

Lynette Lucas bases her Republican primary challenge in HD72 on these tenants:

• “I have four boys in their 20’s and they are struggling with careers and jobs.”
• “I am not happy about property taxes going up and the way our representative is voting in Austin.”
• ” I will secure our border and ensure enforcement of existing laws”
• ” expand gun rights with Constitutional carry”
• “keep men out of women’s private facilities in government buildings.”

San Angelo | Lucas to Challenge Rep. Drew Darby for District 72 Texas House Seat

Bill Gates suggested to Quartz that if US workers are being displaced by robots, tax the robots.

Who jumped on this idea? Jane Kim, a member of the San Francisco Board of Supervisors.

Kim did 3 things:

• Launched a campaign called the Jobs of the Future Fund
• Asked the California’s legislature to study a statewide tax on companies that displace workers with automation
• Decided that a portion of the tax would “be used for education, retraining and targeted investments in new industries” and “help smooth the transition for our workers, providing them with better opportunities

Quartz | California’s legislature is being asked to consider taxing robots

Illinois Governor signed AB 418 prohibiting police officers from participating in multiple pension systems.

What happens to police officers who vest and retire in one pension system and then take a leadership roile in a new police pension system? The second police pension system will require the officer to enroll in a 401K style plan.

A D.C. based, Libertarian Think Tank, Competitive Enterprise Institute, proposed asset recycling to Utah legislators.

Here’s how asset recycling works:

• states can sell or lease revenue-generating, publicly owned assets to the private sector

• the private sector takes over the maintenance costs and makes payments to the states.

• This frees up state assets, allowing states to fund other projects that may be less capable of generating their own supporting revenue

• states create an infrastructure inventory that tracks revenue-generating assets 

Desert News Utah | Task force considering new revenue models for transportation infrastructure

After the hoopla that the Cook County Illinois sweetened beverage tax violated federal food stamp rules was corrected, retailers are sued for misapplying the tax.

Citizens are suing grocer Jewel-Osco, Subway, Walgreens, 7-Eleven & Circle K over the tax. 

Governing | Retailers Sued for Allegedly Overusing Cook County’s Soda Tax 

Previously on informed:intel

The Federal Government is witholding food stamp money to Cook, County Illinois because of the soda tax. Let’s be honest, it isn’t a soda tax, it is a tax on any beverage that is sweetened in any manner.

How much food stamp funding is being withheld? $87 Million

Why do the Feds say a soda tax violates the food stamp rules?

• Purchases made with food stamps are tax exempt but Cook Co. retiailers is e not exempting the transactions
• An immediate refund does not cure the problem

Governing | Feds: Cook County’s Soda Tax Collection Violates Food Stamp Rules

Urban Farms in California could get a property tax cut in San Diego under its ordinance to reduce property taxes for urban farming lands.

Its based on a state incentive program, with a sunset date of 2018.

The policy goals:

•  spruce up blighted neighborhood
• boost access to healthy food in low-income areas

Urban Garden property tax incentive programs are up and running in: Santa Clara County and the cities of San Francisco and Sacramento

San Diego Union Tribune | New incentive aims to spur more community gardens

San Diego Union Tribune | Dream of urban gardens stymied by red tape

AMC Movie Theater Case, the case the Comtroller estiamtes could cost Texas $6 Billion in revenue is still alive. It lives!

The 3rd Court of Appeals has sided with AMC 3 separate times. The week of August 14th, Texas filed another petition with the Texas Supreme Court for review. 

AMC keeps winning on this rational- that the cost of goods sold deduction in the franchsie tax also include operating costs for maintaining the theater auditoriums.

Law 360 | Texas Tells State Court AMC’s Tax Win Could Cost $6B

Texas has a structural budget gap of roughly $9 Bilion, while it has $11 Billion in its Rainy Day Fund. 

11 is still a greater number than 9, right? Math is complicated. 4 Easy Steps to Explain the structural deficit:

• Chalk the Rainy Day Fund balance up to strong oil and gas revenues, and the spending thereof up to politics. Then tuck that away because of politics.
• As for the $9 Billion structural deficit:
  • Texas has a $2 Billion Medicaid shortfall. Healthcare costs are a driver of the state budget.
• Texas dedicated $5 Billion in revenue to transportation. $5 Billion that use to be in the coffers were taken away from spending discussions. Its like the road funds went out of the state checking account, and went into a money market with limitations. 
• Texas other spending driver is education, and that money has to be paid upfront. Almost 1.2 of the education funding is paid every September, October and November. The timing sucks for Texas because the money goes out before Texas tax revenues flow into the state coffers.

Dallas Morning News | Texas Goes to Wall Street for a short term loan of $5.4Billion

Texas Comptroller Glenn Hegar announced that Texas will be selling short term tax and revenue anticipation notes because:

• Texas needs to manage its short term cash flow
• Texas has a structural budget gap of $9 Bilion:
  • $2 Billion Medicaid Gap
  • The shifting of GR to Transportation
  • Texas makes nearly half of annual payments for its share of public school funding every September, October and November. The money goes out before tax revenues flow

3 Fun Facts about tax and revenue anticipation notes:

• Texas does this with some frequency
• The last time Texas issued tax and revenue anticipation notes was 3 years ago
• Texas maintains a high credit rating even with the sale of these notes

Dallas Morning News | Texas Goes to Wall Street for a short term loan of $5.4Billion

Navarro County has a new PACE Authority. What’s a PACE Authority? its a “a non-profit entity operating in Texas that seeks to assist business owners in obtaining loans to make energy-efficient and environmentally-friendly improvements to their commercial buildings”

3 Ways a PACE program is eonomic development:

• More Jobs.PACE programs put people to work on the construction projects
• Good for Existing Businesses. PACE programs offers financing to keep existing companies financially viable
• Expands Property Tax Base & Helps Comapnies Moving to Texas. As more comapnies move to Texas, PACE allows these comapnies to improve existing commercial buildings & that increases the tax bases of local governmental entities

Corsicana Daily Sun | County keeps pace — Texas Pace Authority a go in Navarro County

The Federal Government is witholding food stamp money to Cook, County Illinois because of the soda tax. Let’s be honest, it isn’t a soda tax, it is a tax on any beverage that is sweetened in any manner.

How much food stamp funding is being withheld? $87 Million

Why do the Feds say a soda tax violates the food stamp rules?

• Purchases made with food stamps are tax exempt but Cook Co. retiailers is e not exempting the transactions
• An immediate refund does not cure the problem

Governing | Feds: Cook County’s Soda Tax Collection Violates Food Stamp Rules

Virigina created the Autonomous Systems Center of Excellence to “capitalize on the flourishing unmanned systems industry.”

The state actions that will support the drone industry by:

• limiting red tape
• supporting the industry
• building a qualified workforce

It will also create a partnership with the naval base for expanding business opportunities in underwater droines.

What Texas entity has access to underwater business opportunities? Univeristy of Houston with its oil and gas exploration programs focused on Gulf of Mexico exploration

Government Technology | Virginia Launches New Autonomous Systems Center

Montana has created an outdoor recreation economic development office.

Why outdoor economic development? outdoor activities are a big deal in big sky country

The economic fund amount:  invest $200,000

The value of outdoor enterprises in Montana: The  industry pumps $7.1 billion into Montana per year

There’a also an association backing the proposal: Outdoor Industry Association located in Boulder, CO

Billings Gazette | Gazette opinion: Growing Montana’s outdoor economy

Today the Oklahoma Supreme Court ruled  a tobacco fee unconstitutional.

The cessation fee of $1.50 was placed on a pack of cigarettes and earmarked for health and human services funding by the recent legislature that was facing a budget shortfall.

A revenue measure in Oklahoma must meet the following criteria:

• it cannot be passed in the last five days of a session
• it must receive a required supermajority vote in favor or a vote by the people to pass

Reuters | Oklahoma Supreme Court rules fee on cigarettes unconstitutional

KOCO | State budget in limbo after Supreme Court strikes down cigarette fee

The Pennsylvania State Auditor found that the State Employees’ Retirement System & the Public School Employees’ Retirement System could do better to reduce fees to investment managers.

In 2007 the State Employees’ Retirement System paid $345 M in fees.

In 2016, the State Employees’ Retirement System paid $167 M in fees.

The auditor’s rational:

• lower fees to invesgtment managers = better pension performance

The Public School Employees’ Retirement System response to the state auditor: “baseless and inconsistent,”

Pittsburgh Post Gazette | Pa. Auditor General: State pension fund can do better on fees

This fall Pennsylvania will consider legislation that will limit Educational Savings Accounts to students in the state’s lowest performing schools. 

The trigger for determing lowest school performance, the bottom 15% of schools.

Elements of the ESA plan:

• Parents will receive the $5,000-6,000 of per pupil spending for their student’s education resources
• Unused ESA funds can be used to pay for college

Pennsylvania State Senator John Di Santo’s Senate Bill 2 (2017)

Senator DiSanto Announces Education Savings Account Legislation to Provide Opportunity for at-risk Students

The Sentinel | Senators push school choice plan to get students out of poor performing schools

5 Points from Texas Pubic Policy Foundation position paper in opposition to right of way fees:

• right of way fees should be called a tax
• right of way fees are anti-private property because land woners are being charged for the use of their own property
• Since 2008, local governments have collected $5.1 Billion in right of way fees
• Right of way fee funds are deposited into the general fund and not dedicated for the maintenance of the right of way
• 283.001, Local Government Code says right of way fees should be  consisten with the burden on the municipality for the right of way and fair and reasonable compensation for the use of the right of way

Bonjour interim charge and 2019. 

TPPF | RIGHTLY MANAGING THE MUNICIPAL RIGHT OF WAY?

Georgia GOP state party passed a resolution opposing gambling and horse racing, but removed a provision that called for the state repubicans to oppose fantasy sports.

A signal that Sourthern, evangelical Republicans don’t see fantasy sports as gambling?

Atlanta Journal Constitution | Georgia GOP strikes a blow against casino gambling

Philadelphia’s soda tax is lagging behind and it’s hurting Philadelphia says the Tax Foundation. 

The informed:intel:

• revenue is 14% short and is only providing 49% of its revenues to pre-K programs
• regressive tax causing greater economic strain to lower incomes
  • remember Philadelphia soda tax is 24 times the tax on beer
• job losses directly related to the tax

Tax Foundation | Soda Tax Experiment Failing in Philadelphia Amid Consumer Angst and Revenue Shortfalls

• The police force lost accreditation leaving no police officers to respond to incidents
• Necessitated re-defining the form of municipal government
• No municipal decisions on how to pay for sewer, police, firefighters and animal control
• Volunteer fire department dismantled

Texas Observer | The Rise and Fall of the “Freest Little City in Texas”

A Massachusetts task force studying fantasy sports is set to recommend that it whether fantasy sports is a game of skill or a game of chance is irrelevant.

The key factor to determine if it is gambling- whether there is money involved.

Boston Globe | Skill or luck? Panel is reviewing whether fantasy sports are really gambling

Boston Globe | State panel says daily fantasy sports should be classified as gambling

Texas Retailer Association offers 3 counterpoints on the benefits of sales tax holidays:

• sales tax holidays lead to greater overall sales
• “trickle down” economics leads to other sales during sales tax holidays
• the back to school holiday should be expanded to include technology like laptops and tablets

San Antonio Express News | Tax Foundation criticizes sales tax holidays, but Texas retailers disagree

Previously on informed:intel:

According to a new study released this week from the Tax Foundation, state sales tax holidays preent 6 fiscal problems for states.

16 states have sales tax holidays. Only Texas & Lousianna have 3 separate weekends of different sales tax holidays.

99 problems might be an issue for some, for sales tax holidays, its’ these 6 fiscal problems:

• Do not promote economic growth
• Discriminate arbitrarily among certain products and industries
• Mislead consumers about real savings
• Cause complexity and instability in the tax code
• Are not an effective means of relief for low-income consumers
• Are gimmicks that distract policymakers and taxpayers from genuine, permanent tax relief

Tax Foundation | Sales Tax Holidays: Politically Expedient but Poor Tax Policy, 2017

Delaware became the 14th state to legalize daily fantasy sports. 

The Delaware bill highlights are:

• defines daily fantasy sports as a game of skill
• $50,000 annual licensing fee
• 15% gross revene tax for revenues from Delaware players

Delaware HB 249 (2017)

Calvin Ayre | Delaware guv signs tax- and fee-heavy fantasy sports legislation

Philadelphia Business Journal | Delaware reinstates fantasy sports, with a tax on operators

Where: Oregon

The pension system: Oregon Public Employees Retirement Systems

The current assumed rate of return: 7.5%

The estimate from the actuaries: 6.7%

The board voted to approve a new rate of return of 7.2%.

US News and World Report | Board to Vote on Change to Oregon’s Public Pension System

US News and World Report | Oregon Board Cuts Pension-Investment Expectations

Florida cut its statewide film incentive program.

Miami-Dade County defiantly retorted with- Fine, we will do it ourselves, we don’t need you. 

What do the Miami-Dade County film incentive,a nd impending Miami Beach ordinances for film incentives look like?

• Filming companies receive reimbursements
• Film crews also receive breaks on certain fees, parking and other costs like:
  • free space to hold equipment
  •  waive fees for hiring off-duty police officers
  • waivers for reservation fees at city parks, community centers and other public spaces
• Miami Beach is offereing 30% reimbursement of costs for filming, if it’s done in the city’s redevelopment area
  • Miami Beach incentives are up to $50,000
  • Paid by the redevelopment agency or the city

Governing | As Filmmakers Leave Florida, Cities Hope to Entice Them Back

According to a new study released this week from the Tax Foundation, state sales tax holidays preent 6 fiscal problems for states.

16 states have sales tax holidays. Only Texas & Lousianna have 3 separate weekends of different sales tax holidays.

99 problems might be an issue for some, for sales tax holidays, its’ these 6 fiscal problems:

• Do not promote economic growth
• Discriminate arbitrarily among certain products and industries
• Mislead consumers about real savings
• Cause complexity and instability in the tax code
• Are not an effective means of relief for low-income consumers
• Are gimmicks that distract policymakers and taxpayers from genuine, permanent tax relief

Tax Foundation | Sales Tax Holidays: Politically Expedient but Poor Tax Policy, 2017

Indiana joined 24 other states that permit ABLE accounts.

An ABLE Account stands for Achieving a Better Life Experience and provides tax benefit savings account for disabled individuals.

An ABLE Account allows for:

• no taxes on the interest
• withdrawals limited to specific purposes like:
  • education
  • medical needs
  • housing or transporation related to accommodating a disability
• Can save up to $14,000 without running afoul of Medicaid eligibility or social security benefits

WIBC Indy’s News Center | Indiana to Launch Tax-Protected Savings Account for the Disabled

New Hampshire officially legalized fantasy sports, but set apart expereinced players by:

• defining experienced players as:
  • participated in over 1,000 fantasy competitions
  • having won three or more contests with prizes totaling $3,000 or more from the same game operator
• designating experienced players with a star

NH1.com | NH legalizes fantasy sports with special rules for experienced players

Victoria County Judge Ben Zeller lays out 3 opposing arguments to Bettencourt’s SB 1 :

• SB 1 does not cut taxes
• SB 1 is a distraction from unfunded mandates the Legislature places on local governments
• SB 1 does not address school property taxes while Victoria County has cut property taxes 
• The House has a better school finance plan
  • A good plan also address school finance formulas
  • Property tax plan should be more transparant
  • Property tax plan should be easier for tax payers to understand

Trib Talk | Victoria County Judge Zeller | Shutting down unfunded mandates — the state’s no-limit credit card

16 prisons world wide have been transformed from vacant prisons to luxury hotels & from revenue consumer to revenue generator.

A smattering of the options:

• Four Seasons Sultanahmet: Istanbul, Turkey

• Het Arresthuis Hotel: Roermond, Netherlands

• Hostel Celica: Ljubljana, Slovenia

• Malmaison Oxford: Oxford, United Kingdom

• The Liberty Hotel: Boston, Massachusetts

• Långholmen: Stockholm, Sweden

Nordic Business Insider | 16 prisons that have been transformed into luxury hotels

New Jersey is using its lottery to bolster assets of the state pension system, making the pension more actuarially sound.

Who else is dabbling in lottery and pension issues? Texas Lt. Gov. Dan Patrick

California is borrowing $6 billion from the state’s Surplus Money Investment Fund to pay down a portion of its $59 billion unfunded pension liability. 

Governing | States Get Creative on Pension Funding

New York, Colorado and Vermont have all implemented some form of state data security regulations for the finance industries operating within their state.

The trend is moving fast. Cyber security  to protect state economic revenues and vitality. 

Greensfelder Hemker & Gale PC | Rise of state cybersecurity rules in financial services

Ft. Worth. 

Moody’s for the second year in a row, lowered Ft. Worth’s credit rating by:

• lowering the rating tied to $657 million in outstanding debt to Aa3
• revising its outlook to “negative” from “stable.”
• warning investors that the city’s pension hole will continue to:
  • put pressure on the city’s operations
  •  its ability to provide services
  • its ability to make capital investments

Action by Ft. Worth in repsonse:

• a task force has been studying the pension issue
• the task force is developing ways to make it sustainable over the long haul
• Ft. Worth will present the Texas Pension Review Board with a restoration plan by December

The New Study: By Rice University Baker Institute fellow Joyce Beebe “ E-Commerce: Recent Developments in State Taxation of Online Sales”

2 Reasons Internet Sales arent; triggering state and local revenue:

• 1992 U.S. Supreme Court ruling requiring the vendor to have a physical presence in the state
• Inaction by Congress

3 Impacts to Texas Sales Tax Revenue:

• Sales tax is more than 50% of texas tax revenue
• 1% of online sales to Texans are captured by the sales tax
• Texas is leaving tens of millions untaxed

2017 Legislation, SB 1713, did not receive a hearing in the Texas House. It passed the Texas Senate on May 11th.

Houston Chronicle | The internet is still cutting into Texas sales taxes

Nevada Legislature legalized recreational marijuana. Licensing proceeded, supply dwindled and the use of the alcoholic beverage distribution system got called into question.

Cue the emergency rules… The Nevada Tax Commission adopted rules to make clear that distribution could be done by pot store owners that are duly licensed.

AP via CBS News | Nevada’s pot bottleneck prompts emergency rules

Georgia repealed its EV tax credit of $5000 in 2015. Georgia’s repeal and replace included a new $200 registration fee for EVs.

2 years later, the economic results are:

• Georgia EV sales slumped more than 80%
• Georgia lost its standing as #2 in EV vehciles behind California

How is the EV industry prepping to regain a tax credit? With everyone’s favorite toolkit- an economic study.

This EV economic study shows that lowering the $200 registration fee and implementing a $2500 tax credit for EVs would:

• generate $100 million in gains to Georgia’s GDP,
• create $54 million in increased income for Georgians
• 950 additional full-time jobs in the state

What groups/entities are in the EV coalition supporting a reduced EV tax credit?

• Plug In America
• EV Club of the South
• Southern Alliance for Clean Energy
• City of Atlanta
• Clean Cities-Georgia
• Sierra Club

Utility Dive | Can electric vehicle advocates resurrect Georgia’s tax credit?

Activist groups in Houston want the city to include enforceable job creation in its economic development agreements. 

Texas Organizing Project purports that 56% of Houston’s economic development agreements had no enforceable job creation requirements. 

Houston Public Media | Coalition Wants Tax Abatements To Require Help For Houston Economy

The Center for Retirement Research at Boston College has a new report that says for every 10% increase in alternative investments by a pension system, the pension’s rate of returns decrease.

2 Conclusions from the Center for Retirement Research:

• Hedge funds were the major drag on pension overall returns
• Alternative investments do not protect against stock market volatility

Governing | The Week in Public Finance: Late Budgets, Illinois’ First in Years and Risky Pension Investments

Oregon became the first state to tax adult bikes of $200 or more. Each bike will be taxed $15.

Oregon does not levy a regular sales tax. The $15 tax is dedicted to Connect Oregon program, that funds projects serving multiple modes of transportation.

The rational for the tax: because bikes who use roads should contribute too.

City Lab | Oregon (Yes, Oregon) Just Put a Tax on Bicycles

Nevada estimates that double dipping pensioners cost taxpayers $23 million per year. 

Where does the $23 million annual price tag hit?

• strains the pension systems. in 2016, the largest retirement system paid out $300 million more than contributions
• Nevada’s law is more generous than average. Nevada allows elected officials to double dip and any person who holds a job that is “critical and hard to fill”
  • Only 10 states are confirmed to have the “critical and hard to fill” exception for double dipping

Las Vegas Review Journal | Pension system perks cost taxpayers $23 million a year

Combined state and local sales tax rates for the U.S. look like this:

• #1 Louisiana (10.02 %)
• #2 Tennessee (9.45 %)
• #3 Arkansas (9.34 %)
• #4 Washington (9.20 %)
• #5 Alabama (9.03%)
• #10 California (8.48%)
• #12 Texas (8.17%)
• #28 Florida (6.80%)
• # 33 Pennsylvania  (6.34%)
• The lowest combined rate: Alaska 1.76%

Tax Foundation | State and Local Sales Tax Rates, Midyear 2017

Michigan Legislature is considering reigning in dark store tax challenges.  In the mean time, more towns are preparing for a rash of “dark store” tax challenges. 

In Somers, MI city council engaged outside counsel to fight a new dark store tax challenge from WalMart and Sams Club. The property appraisals had been flat since 2012 with no challenges. This marks the first challenge to the appraisal.

Kenosha News | Somers anticipating “dark store” tax challenge from Wal-Mart

Economic Arguments for ending the tax benefit of stadium bonds:

• stop financing big business of professional sports on the backs of taxpayers
• stadium bonds are costing taxpayers $3.2 billion since 2000
• there is $20 trillion in federal debt, stadium bond subsidies are waste that needs to be eliminated

Cory Booker | Booker, Lankford Introduce Bipartisan Bill to End Federal Subsidies for Sports Stadiums

ESPN | Senators aim to stop use of municipal funds to finance stadiums

Governing | Stadium Bonds on the Chopping Block

Houston Chronicle Editorial, Dark stores: Big box retailers’ strategy to cut property appraisals will harm local communities, supports adding commercial property appraisal refrom to the special session:

• Texas should learn from Michigan where dark store property tax reductions harmed revenues
• the current Comptroller estimate of local government revenue loss is  $2.9 billion
• Its not only Big Box retailers using dark store arguments to reduce property taxes, it is other businesses too

Mississippi’s fantasy sports bill includes 2 ways for sports betting to be legal in Mississippi if the US Supreme Court overturns the nationwide prohibition:

• Mississippi removed this provision from its fantasy sports bill:
  • (a) No wagering shall be allowed on the outcome of any athletic event, nor on any matter to be determined during an athletic event, nor on the outcome of any event which does not take place on the premises.
• Mississippi provided for legal sports betting should it become legal

Mississippi’s H 967 (2017)

Biloxi Sun Herald | Supreme Court decision could make it ‘another 1990s’ for Coast economy

Legal Sports Report | Mississippi Is Already Poised To Offer Legal Sports Betting, Thanks To Language In A Fantasy Sports Law

The U.S. Supreme Court will hear Christie v. NCAA.

What is New Jersey arguing in Christie v. NCAA? New Jersey is arguing that the 10th amendment prohibits the federal government from banning sports betting. (There’s a carve out for Nevada).

What would a US Supreme Court ruling for New Jersey mean to states? The ability to tax spots gambling revenue.

Sports Illustrated | All bets are off: Supreme Court to review sports betting ban

The North Carolina Capitol Broadcasting Company says the implemented educational savings accounts were created with noi accoutnability that allowed for:

• recipients to be private schools that have no standards nor accrediation
• recipients can be entities that are not lawfully created businesses
• recipients do not have to be schools
• the state’s top recipient of ESA funds is being investigated for the embezzlement of nearly $400,000 in employee tax withholdings

North Carolina Capitol Broadcasting Company | Editorial: New NC budget – poor management, failed responsibilities, missed opportunities

Initiative & Referendum  in small cities in California wants to stop sanctuary city policies by repealing the city’s utility user tax.

The initiative and referendum is being pushed until the targeted cities repeal their sanctuary city policies.

Sacramento Bee | He’s out to make sanctuary cities pay – and he only needs 62 signatures to get started

In January 2017, the Texas Comptroller re-defined what constitutes a strip club, a sexually oriented business, that should be assessed the strip club tax.

The new definition of strip club  includes individuals that are fully covered in “paint, latex, wax, gel, foam, film, coatings, and other substances applied to the body in a liquid or semi-liquid state.”

In 2015, the Comptroller began applying the stip club tax to latex clothed performances. The $5 surcharge was retoractive to 2008. Resulting tax bills were in the millions for these otherwise non-strip club businesses.

The legislative issue is that the statutory definition of strip club for the $5 tax would not be triggered by latex or scantily clad performers. The Comptroller rules & the statute don’t align, welcome to litigation and legislative fix territory.

Roped into the new tax are establishments that ” sponsor sporting events with scantily clad cheerleaders, restaurants having scantily clad waitresses and businesses hosting musical guests.”

Courthouse News Service | Strip Clubs Fight Texas’ Definition of Taxable Nudity

Illinois Legislature is in a special session on its budget. During the regular session, the budget included revenue from a gaming bill that included legalization of fantasy sports.  

Online Poker Report | Illinois Online Gambling, Fantasy Sports Bills Stir To Life During Special Session

North Carolina Legislature adopted educational savings accounts by:

• Including $450,000 of funding in the state budget
• $9,000 a year deposited into a taxpayer’s education savings account
• Requirements placed on the taxpayer using an educational savings account: 
  • Use limited to public or private school tuition, transportation to school, educational materials and therapies with required quarterly expense reports
  • Procurement Opportunity for financial institutions: A  debit card linked to the ESA account

North Carolina Public Radio | Three Big Changes In Education Policy That Made The Budget Deal

A court in Nevada ruled that the 3 tier liquor distribution applies to marijuana. That means for the weed to be sold and taxed in dispensaries, a liquor distributor must deliver it. 

The requirement of liquor disgtributors to be involved began because voters approved an initiative that said marijuana would be regulated in a manner similar to alcohol

Courthouse News Service | Booze Dealers Retain Exclusive Rights to Pot Distribution in Nevada

Texas State representative Dustin Burrows is prioritizing the following issues for the upcoming special session:

• Property Tax Reform
  • Greater Transparency
  • Details on which taxing jurisdiction sought more funds
  • Reign in the rollback rate which is effectively at 8%
• Fix ASATR
  • extend ASATR
  • eliminate the small-school adjustment
• Pro-Life Initiatives

Lubbock Avalanche Journal | Dustin Burrows: Key issues that need to be addressed in special session

HB 2182 By Reynolds | Zerwas | Miller relating to the authority of a county assistance district to impose a sales and use tax was vetoed to:

• prevent a possibility 
• the interpretation could have allowed a local sales tax rate above the legal limit
• “The two percent cap on local sales tax must never be exceeded. “
• The veto statement goes on to blame the drafting. Bad draft. The next bill draft needs more clarity.

Governor Abbott Vetoes HB 2182

Nevada Governor Sandoval (R) signed 3 pieces of legislation taxing marijuana at the following rates:

• As low as $50 for Medical marijuana cards
• 10% excise tax on sales of recreational marijuana
  • Potential annual revenue: $70 million
  • Revenue dedicated to Rainy Day Fund
• 15% wholesale tax on both medical and recreational marijuana

Senate Bill 487, Senate Bill 344 & Assembly Bill 422 Nevada 2017

Governing | 3 Marijuana Regulations Signed, 1 Vetoed in Nevada

How the excise tax for a gallon of wine compares across the states:

• #44 Texas & California at $0.20
• #1 Kentucky $3.17
• #2 Alaska $2.50
• #3 Florida $2.25
• #4 D.C. $1.79
• #4 Iowa $1.75
• #5 New Mexico & Alabama $1.70
• #7 Virginia & Georgia $1.51
• #9 Maryland & Rhode Island $1.40

Tax Foundation | How high are wine taxes in your state?

The state adopting new hybid pension plans: Pennsylvania

What limitations were put around the new hyrbid pension plans in PA’s SB 1 (2017)?

• Future, non-high risk employees will be placed in a plan that allows them to receive 1/2 of their benefits from the current taxpayer-funded plan & 1/2 from a 401(a) defined contribution plan
• Current employees have an option to opt-into a defined contribution plan
• New employees are hired into the defined contribution plan

Chief Investment Officer | Pennsylvania Pension Reform Bill Becomes Law

Philadelphia Inquirere Editorial | New pension plan for PA is a good start, but it’s only that: a start

Wall Street Journal | Pennsylvania Lawmakers Compromise on Pension-Overhaul Bill

Americans for Tax Reform | Pennsylvania Pension Reform Aims to Help Taxpayers & Beneficiaries

Vermont becomes the 12th state to legalize daily fantasy sports. 

S 136 in Vermont sets up a regulatory framework that:

• Delegates to the State Attorney General and Excutive Branch power to establish a registration fee and tax for daily fantasy sports
• Defines fantasy sports to concern knowledge and skill of the player
• Requires daily fantasy sports companies to establish commercially reasonable policies to prevent employees and professional athletes from participating
• Requires players to be over 18
• Data security measures for fantasy sports data
• Require 3rd party indpendent audits

The other states with daily fantasy sports regulations:

• New York
• Massachusetts
• Tennessee
• Mississippi
• Colorado
• Missouri
• Indiana
• Virginia
• Kansas
• Maryland
• Arkansas
• + Nevada which requires a gaming license

Vermont S 136 (2017) 

Legal Sports Report | An Even Dozen: Daily Fantasy Sports Now Legal In 12 States After Vermont Enacts Law

National Law Review | Vermont Becomes Second State to Legalize Daily Fantasy Sports in 2017

• It is misinformation that the Legislature cut education funding
• Texas state budegt funds $60 million for public education + $28-$30 million in local property taxes for public education
• Education is 52% of state general revenue
• SB 1 fully funds education + funds it for 80,000 projected new students
• The Texas House killed ASATR Funding by not agreeing to the Senate’s version of House Bill 21

Statesman | Two Views: The truth about education spending in Texas, by Dan Patrick

City: Seattle

The tax would impact which beverages: soda, fruit juice, energy drinks, sweet tea, and sugared coffees

The tax: 21cents per can of soda in the city limits

How does the sugar tax compare to the state’s beer tax? It is 8 times higher

The opposition included an unlikely alliance of business community & labor unions. 

Americans for Tax Reform | Seattle Passes Staggering New Beverage Tax Despite Opposition from Unions and Businesses

The Kansas Association of School Boards summarizes the pending school finance fix in Kansas with these 38 points:

Which state implemented a new 10% tax on recreational marijuana? Nevada

What will Nevada fund with the weed tax? Nevada’s Rainy Day Fund

What was the initial funding source for the weed tax? Educational Savings Accounts.

Las Vegas Sun | ESAs’ loss of earmarked money from pot tax is rainy day fund’s gain

What are County Energy Transportation Reinvestment Zones? In 2013, the zones were created to allow for a funding mechanism for counties whose roads required repeair as a result of the shale boom.

In 2017, the legislature repealed County Energy Transportation Reinvestment Zones, why does this still matter? There is a pending lawsuit invoilving the family of formner Texas Governor Dolph Briscoe and Dimmit County. 

What legislative issues will emerge if the pending lawsuit moves forward?

• Whether the 113 counties that created these reinvestment zones did so without constitutional authority and thereby the property taxes levied by the zones are unconstitutional.
• Would the unauthorized property taxes have to be returned to tax payers?
• How far would the repayment of the property taxes reach and to how many reinvestment zones?
• What does it mean for the future of special districts?

San Antonio Express News | Legendary Briscoe family sues Dimmit County

 Who is promoting ride share for public education? U.S. Education Secretary DeVos

Are there local governmental entities embracing ride share for public education? Yes, Denver’s school district is providing transportation to underserved students attending both traditional public and charter schools

How do libertarian types want ride share for education to be funded? Educational Savings Accounts

Reason | Uber, But for School Buses

Which state legislature is moving online gaming and fantasy sports? Illinois

What is considered key to legalizing and regulating daily fantasy sports in Illinois? Casino approval of daily fantasy sports

What entities will be permitted to operate in Illinois? Casinos with a physical location in Illinois

Illinois HB 479 (2017)

Forbes | Illinois Could Be The Next State To Offer Online Gambling

State: Massachusetts

How Massachusetts is capturing new sources of online sales tax revenue: re-defining how a retilaer has a presence in the state

What is the new definition of presence in Massachusetts to trigger sales tax: It’s black and white- an app is a presence, a cookie left on a mobile device is a presence. 

What’s the response from NetChoice, an association of ecommerce sites: “your business is subject to the taxation [and] regulation in any state where a user simply enters their website address. That can’t hold up to legal scrutiny, because it certainly doesn’t hold up to common sense.”

Texas Public Radio | Massachusetts Tries Something New To Claim Taxes From Online Sales

Originators of the tax plan: California Nurses Association

The tax: new taxes on consumer purchases like new cars and dining out at restaurants, and business revenue

The revenue would fund:  A “Canadian” style healthcare system with no premiums, no deductibles and no out of pocket costs for prescriptions

How would California pay for this?

• new taxes, see above
• savings realized from cost savings from reductions in executive salaries and administrative costs for health care billing
• health care efficiency, reducing unnecessary or inefficient medical services
• federal funds

3 Ways Festival Admission Tickets are treated under state tax laws:

• Wisconsin & Illinois impose a sales tax on the cost of admission tickets to festivals.
• Texas does not impose a sales tax on an admission ticket for fesitvals operated by a 501c3.
• Massachusetts imposes NO tax on admission tickets.

What about promotional items given away at festivals?

• Colorado specifically imposes a use tax on the entity giving away products
• California, Washington & Rhode Island also impose a use tax on swag.

Bloomberg BNA | SALES TAX SLICE: PRIDE FESTIVITIES COULD BE A MAJOR SOURCE OF REVENUE FOR STATES

• Colorado. 
  • 15 % excise tax
  • 10 %state tax on retail marijuana sales (falling to 8 percent as of July 1, 2018)
  • 2.9 % state sales tax
  • local sales taxes (the average rate in Colorado is 4.6%)
  • local excise taxes on marijuana, such as the 3.5% tax in Denver
• Alaska
  • flat tax of $50 per ounce
• California
  • 15% sales tax
  • $2.75 tax per ounce on leaves
• Nevada
  • 15% excise tax
• Oregon
  • 17% sales tax
• Washington
  • 37% sales tax
• Maine 
  • 10% sales tax

Tax Foundation | Marijuana Legalization and Taxes: Lessons for Other States from Colorado and Washington

A conservative cadre made the following statements about SB 1:

• “SB 1 comes within several millions of dollars of the 2018-19 Conservative Texas Budget target of $218.5 billion—after accounting for the delay of $1.8 billion in transportation appropriations.”
• “The 86thTexas Legislature will have approximately $2.7 billion to spend in its supplemental appropriations bill in 2019 in order to remain under the final CTB limit of $221.23 billion for the entire 2018-19 biennium.”
• “Though the budget increases public education spending without reforms such as school choice, Texans would benefit from the passage of what would be a second consecutive Conservative Texas Budget.”

The conservative organizations, http://www.conservativetexasbudget.com/:

TEXAS PUBLIC POLICY FOUNDATION

LIBERTY ACTION TEXAS

AMERICANS FOR PROSPERITY, TEXAS

AMERICANS FOR TAX REFORM

NATIONAL CENTER FOR POLICY ANALYSIS

YOUNG CONSERVATIVES OF TEXAS

NFIB TEXAS

R STREET INSTITUTE

OUR AMERICA INITIATIVE

TEXAS EAGLE FORUM

STATE BUDGET SOLUTIONS

HERITAGE ALLIANCE

NATIONAL TAXPAYERS UNION

CITIZENS AGAINST GOVERNMENT WASTE

Backgound: Nevada passed Educational Savings Accounts a couple years ago. The Nevada Supreme Court found the funding mechanism, rooted in education funding, unconstitutional under the Nevada Constitution. In 2017, the Nevada Legislature is trying to fix it.

The 3 Deals to Fix ESAs floated in Nevada Legislature:

•  A sliding scale for ESAs, less household income, more ESA
• Reduced funding down from the requested $60 Million to $20-$30 million
• Approval of ESA opponent initiatives

Las Vegas Review Journal | Dealings continue at Nevada Legislature in battle to fund ESAs

State: Ohio

The fantasy sports regulation:

• fantasy sports are explicitly prohibited at kiosks or at machines
• state licensing of Daily Fantasy Sports by the Ohio Casino Control Commission
  • The Ohio Casino Control Commission will set the licensing fee by rule
• defines fantasy sports as knowledge and skill

WKSU | Ohio House Passes A Bill to Further Regulate “Fantasy Sports”

Ohio House Bill 132 (2017)

State: Florida

The Sales tax holiday created:  A sales tax holiday for hurricane supplies (and school supplies)

What does the hurricane preparedness sales tax holiday look like?

• Its a June 2-4, a three-day emergency preparedness sales tax holiday
• that excepts from sales tax:ice, batteries, first-aid kits, gas tanks, coolers and generators 

Sun Sentinal | Gov. Rick Scott signs tax holidays for hurricane and school supplies

State:  Missouri

The economic development goal: 

• return jobs
• help a region of the state that’s suffered economically since a major aluminum smelter closed last year

What lure do the companies need to move into the economically repressed area of Missouri?

• a cheaper electric rate with a longer contract than is allowed under current law

What’s the opposition say? Doing this would allow electric companies to raise rates on residential customers

AP | Missouri Lawmakers Power up for Electric Special Session

• 20% want lower property taxes
• 17% school finance reform
• 16% no new spending, no new taxes
• 15% don’t know
• 13% more funding for CPS
• 12% more funding for border security
• 4%lower business taxes
• 4% school vouchers

TPPF | WHAT DO TEXANS WANT MOST FROM THE LEGISLATURE?

The City: St. Louis

What problem is Lambert International facing? The airport handles 1/2 the traffic it did 10 years ago when St. Louis was no longer a hub for a major airline

Whose genius idea is it to privatize the airport? A limited government think tank, Grow Missouri

How does an aiport privatize? Requires FAA permission, 

What beenfits can a private airport operator bring?

• strategic approach to running the airport
• improve the facilities to attract new vendors
• negotiate better flight schedules with airlines
• lure more cargo business

Has this worked elsewhere? Yes, its common in Europe and airports in Memphis, Indianapolis and Louisville have improved their fortunes by expanding cargo operations.

Governing | Should Struggling Airports Be Turned Over to Companies?

State: New Jersey

The Bill: Assembly Bill 3532

What would it allow? Allows racetrqcks and casinos to apply for fantasy sports licenses

The licensing agency in New Jersey: the state Division of Consumer Affairs

The tax/fee on fantasy sports operators in NJ: quarterly fee of 10.5% of gross revenues on companies that receive permits 

NJ.com | N.J. could soon allow casinos to run daily fantasy sports

Courier Post | New Jersey Assembly votes to regulate daily fantasy sports

The State: California

The Court: U.S. District Court for the Central District of California

The Opinion

The big deal in the ruling: This form of fantasy sports is gambling. 

The California court’s ruling could be persuasive to pending suits in these states:  Illinois, Massachusetts, Texas and New York

The Recorder | Fantasy Sports Operators Eye Calif. Ruling on Horse Racing

Lowest 25 funding ratio states (below 80% funded):

• Includes Texas with stated unfunded liablity of $69,352Million & a market value of  unfunded liabilities at $243,718 Million
• Also includes:
  • Georgia at $22,150 Million in stated unfunded liability & $92,310 million in market value  of unfunded liabilities
  • Colorado with $29,583 million in stated unfunded liabilities and  $66,388 million in market value of unfunded liabilities
  • New Jersey with $135,701 million in stated unfunded liabilities & $161,856

Top 25 funding ratio states (above 80% funded):

•  California, Florida, New York

2 Highest Funding Ratios:

• South Dakota
• Wisconsin

Hoover Institution | Monday, May 15, 2017 | Hidden Debt, Hidden Deficits: 2017 Edition

A report by: Institute on Taxation and Economic Policy & School Superintendents Association

Lays out 2 arguments supporting federal private school vouchers:

• profitable tax shelters by high-income taxpayers
• Economic boon for corproations and investors

How does the federal tax credit work? Offers “supersized” incentives to donate to organizations that distribute private school vouchers

Do residents of every state enjoy the tax benefits? No, only 17 states with private school voucher tax credit

Tax Justice | Investors and Corporations Would Profit from a Federal Private School Voucher Tax Credit

State: Connecticut

The new bonding mechanism sought to reduce CT’s cost of borrowing: investors revenue bonds

How are investors revenue bonds financed? A tax-secured revenue bond that is paid back directly from the state’s income tax revenues

Governing | Fresh Off Another Downgrade, Connecticut Has a Plan to Lower Borrowing Costs 

States that have not passed fantasy sports regulations: Texas,  Florida & North Carolina

State that is increasing penalties on fantasy sports operations: Massachusetts is considering hefty fines on operators as a mechanism to replace the 2016 temporary fantasy sports regulations.

Salem News | Fantasy sports sites could face hefty fees

Legal Sports Report | Daily Fantasy Sports Industry Gains Victory After Setbacks In Texas, Florida

WRAL | Fantasy sports bill fails in committee

State: New Jersey

3 points from Gov. Chris Chritie’s proposal to use lottery proceeds to pay down pension debt:

• ease the burden on future budget writers, by reducing the amount of pension liabilities
• Automatic injection of inject a $13.5 billion
• Dedicated funding source for 30 years

How does this work? New Jersey’s lottery will become an asset of the pension system

NJ.com | What you need to know about Christie plan to slash N.J. pension debt with lottery cash

Relying on information from the Comptroller’s website, TPPF says

• Cities impose a property tax burden of $305 per capita or $1,220 for a family of four
• The tax burden has grown 137% since 2000 while population & inflation is 82%, based on TPPF analysis
• City propety taxes have grown by 5.82% every year between 1996 and 2015

TPPF | YES, CITIES ARE PART OF THE PROPERTY TAX PROBLEM

Smoke signals are being sent that Congress could act to cap or limit the tax benefits of tax-exemopt municipal bonds.

What would happen to cities if the benefits of tax exempt municipal bonds is removed?cities would find it far more expensive to finance capital improvements and other infrastructure

What has been financed by tax-exempt municipal bonds?

• 4million miles of roads
• 500,000 bridges
• 16,000 airports
• 900,000 miles of water pipes
• municipal bonds support more than 1.5 million civic projects

Governing | The Growing Threat to Municipal Bonds

Arizona approved last minute tax incentive extension for spurring business development.

Arizona Senate Bill 1416 (2017)

Arizona Republic | Arizona Legislature ends session with tax, welfare bills on final day

The County: Grant County, Ky.

Grant County’s solution to its financial woes was to offer tax incentives to:  the Ark Encounter, a religious theme park that includes a “life-sized reconstruction” of Noah’s ship, along with a creation museum

The additional county revenue with the Ark Encounter? $0, the tax incentives were too steep

What seems to be the economic development flaw in Grant County’s plan?

• few other attractions nearby to entice visitors
• not enough hotel rooms to accommodate tourists
• not enough restaurants to draw tourists into local business districts

Governing | No Help From Noah: The County That Banked on a Religious Theme Park to Solve Its Money Problems

The Florida Legislature passed a budget that funds the agency that directs economic devleopment but does not fund:

• business incentives that Governor Scott relies on to lure businesses to expand or relocate in Florida

Governor Scott’s commented that Florida is out of the economic development game when the Legislature rejected his funding request.

News Service of Florida | Rick Scott: Florida’s Out of the Economic Development Game