State income tax are prohibited from imposing local income tax): New Jersey: New York (all local taxes reported on state income tax form): Ohio: Oregon: Pennsylvania: West Virginia: Most states impose a tax on income of corporations having sufficient connection ("nexus") with the state. Such taxes apply to U.S. and foreign corporations, and are not subject to tax treaties. Such tax is generally based on business income of the corporation apportioned to the state plus nonbusiness income only of resident corporations. Most state corporate income taxes are imposed at a flat rate and have a minimum amount of tax. Business taxable income in
Hall income tax there were bills to raise state government revenue by reducing the fraction of the Hall tax that is distributed to local governments. The proposals for major changes to the Hall tax failed because of the lack of alternative sources of revenue. The Hall tax is Tennessee's only tax on personal income; the state does not levy a general personal income tax. As of 1974, the Tennessee Supreme Court had consistently held that the state constitution authorized only three types of taxes: privilege taxes, "ad valorem" property taxes, and a tax on income from interest and dividends. In decisions in 1932