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Tax watch  Taxes across the nation

April 27, 2000 -- Because the federal income tax is the biggest and usually the first tax we see listed on our pay stubs, we naturally tend to focus on it.

But state government takes a bite out of our spending money, too. Bankrate will help you stay on top of what your localities are collecting -- income, sales, personal property or investment taxes, or often a combination of all.

Here's a look at some recent tax actions across the nation.

Idaho taxpayers -- single and married -- get some breaks
BOISE -- Many married Idaho taxpayers should see their state tax bill fall next year, thanks to a tax relief bill that became law on federal tax day 2000.

In addition to lowering taxes for joint filers, Gov. Dirk Kempthorne also signed legislation on April 17 lowering the tax rate slightly for all state residents and giving self-employed workers a larger medical expense deduction.

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But there is a drawback: the tax measures are effective only for the 2000 tax year. If lawmakers want to extend the measures, they'll have to introduce new legislation during the next meeting of the state assembly.

The marriage tax law will raise the standard deduction for joint filers to double that of singles. This year, the single standard deduction was $4,300 while joint filers could take a $7,200 deduction. The bill will raise the joint deduction amount by $1,400 to $8,600.

Idaho's individual income tax rate also will drop by 0.1 percent next year, from 8.2 percent to 8.1 percent. Self-employed taxpayers will be able to deduct the full cost of their health insurance payments on state returns. The bill also indexes the tax bracket for inflation.

Alaskan cruise ship tax eyed
JUNEAU -- Vacationing in the largest state may soon cost a bit more. The Alaska Senate has passed a bill that would implement a $50 tax on each passenger aboard cruise ships entering state waters.

Republican Sen. Rick Halford says the tax is necessary to help regulate the profitable and mostly foreign-owned cruise ships that now pay little to operate in the state. The tax would bring in more than $30 million from the estimated 600,000 cruise ship passengers who visit the state each year.

Other lawmakers, however, expressed concerns about the fairness of the tax and its possible impact on tourism.

A $5-per-passenger fee already is in place in the state capital. Halford's higher tax would displace local charges such as Juneau's, but $5 would be rebated back to the local government in each port town a passenger visited. All cruise tax money would be earmarked for the operation of state-owned ports and harbors.

The cruise tax emerged after a separate bill to require recreational ships and other large vessels to follow the state's oil spill response laws stalled in the Alaska House.

-- Updated April 27, 2000

 

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