State and local tax impact of the November 2024 elections and ballot measures

In brief

What happened?

While some state legislative races are still being determined at this writing, the November 5 election has produced some changes in legislative control, including an end to the Michigan and Minnesota Democratic “trifectas.” Meanwhile, states and localities decided consequential tax ballot measures, including rejecting a gross receipts corporate minimum tax in Oregon, rejecting the repeal of the capital gains tax in Washington, and approving significant business tax changes in San Francisco. 

Why is it relevant? 

As outlined below, changes in state chamber control can have a significant impact on tax policy consideration, including a shift from the prior majority’s policies and the advancement (and potential compromise with) the former minority party’s positions. State and local ballot measures also may have a significant impact, including influencing future policy considerations in the state legislatures. 

Actions to consider 

Taxpayers should consider the potential for state tax policy changes and ballot measure results in their state tax analysis and forecasting. Taxpayers also should consider the federal election results, the potential for significant federal tax changes, and the impact such changes would have on state tax liabilities. (See PwC’s Insight for more on the federal election results.) These considerations provide an opportunity for state tax professionals to coordinate with federal tax colleagues, government affairs, and other members of the tax team.