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Jan. 1 brings new state laws,
tax and otherwise

January 1, 2008

The new year always brings with it changes, especially in the legislative area. Stateline.org has put together a nice compendium of new state laws that take effect today.

Here are some key tax-related ones:

  • Happynewyear_2
    Massachusetts, which set a precedent last July with the first U.S. law requiring each of its uninsured residents who can afford health care to buy it, now goes a step further. Starting today, every able Bay State resident who hasn’t gotten health insurance will lose a state income tax exemption and get slapped with monthly fines.
  • Texas begins levying a $5-per-customer charge at strip clubs, aka the "pole tax" blogged about here, with the proceeds going to a fund to help rape victims. Club owners have filed suit to half the charge.
  • Oklahoma taxpayers can now go to a Web site that will list corporate tax breaks and disclose how the state is spending its money.

Hawaii’s lowest wage earners now can claim tax credits of up to $160 and some Aloha State condo owners will get a break on the state’s capital gains tax. Details in this Honolulu Star Bulletin story.

And the new year also brings some tax relief to our neighbors to the north. Canadian Prime Minister Stephen Harper announced a cut in the country’s goods and services tax (GST). The GST will fall from 6 percent to 5 percent in 2008, accounting for $6 billion in tax relief for Canadian consumers. More in this story.

2008_2
Other notable statutes:
Beyond taxes, there are some other new U.S. laws that also will affect residents’ pocketbooks in 2008.

Stateline notes that the mortgage lending crisis, for example, has led to changes in several states:

  • Starting today, California and Colorado mortgage brokers must follow federal lending guidelines.
  • New York loan officers must undergo a criminal check and register with the state.
  • And back to Colorado, homeowners will have 110 to 125 days to catch up on payments before their homes are sold, compared to 45 to 60 days previously.

The federal minimum wage finally was hiked last year, but states have always been ahead of this curve. That trend continues in 2008. The minimum wage will increase today in 14 states, ranging from a 10-cent bump in Montana to a $1.05 surge in Iowa.

And finally, California offers the most interesting … yeah, that’s the word, interesting … law to officially go on the books this New Year’s Day.

The Golden State now is the third state to prohibit businesses from injecting microchips into employees without the workers’ consent. It’s already the law in Wisconsin and North Dakota.

Two questions:

  1. What companies really need to track their workers 24/7 via this technology?
  2. How would they implant the microchips without the employees knowing?
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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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