New state taxes in effect July 1


July 1 marks the day when a lot of states put new tax laws in effect. has summary of many of the new taxes in effect across the states. Many aren’t called “taxes” and so other euphemisms are used so people don’t get mad at lawmakers who passed these taxes.

Some states are coming up with Internet taxes regardless of what happens with this issue on the federal level. Iowa is now doing this at 6%; Minnesota is doing 7% tax on books, ringtones, songs, etc. purchased online; and Maine has a 5% internet transaction tax law.

This is a clear trend as more states go after Internet sales.

Minnesota also has a new tax on services, so when a repair person comes to an office to fix something, there will be tax on that. A lot of states are eyeing the idea of taxing services, in addition to the traditional route of taxing goods.

With cigarettes, Minnesota (Tax-esota?) is going to a tax of $2.83 per pack from around $1.30. They’re not alone though. California, Maryland, Virginia, Kentucky, and others are on board with new cigarette taxes.

Another area getting walloped is gasoline tax because there’s not enough revenue for road maintenance as more and more people buy fuel efficient cars.

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