Supreme Court rejects broader tax foreclosure claim. The Supreme Court ruled unanimously that homeowners whose property is sold at auction to recover unpaid taxes are not entitled to recover the home’s hypothetical fair market value. The case involved a Michigan family whose home was sold for less than half its estimated open-market value to cover a tax debt of just over $2,000. Justice Samuel Alito wrote that taxpayers are generally entitled to the difference between the auction price and unpaid taxes, not what the home might have sold for in a traditional real-estate sale. But the Court sent the case back to lower courts to determine whether the county’s auction process was fair.
Virginia budget adds data center energy tax. Virginia lawmakers approved a $205 billion two-year budget that includes a new energy consumption tax on data centers. The tax would total 1.1 cents per kilowatt hour used each month and raise up to $600 million annually, though revenue above that cap would be returned to data centers. The compromise keeps the state’s data center sales tax exemption in place but directs regulators to study water use, set future rules for cooling systems in certain areas, and develop noise standards. The budget also increases the standard deduction, authorizes a retail cannabis market with a 6 percent state sales tax at launch, and expands local authority to seek voter approval for a 1 percent sales tax for school construction.
Colorado budget outlook improves, but pressures remain. Colorado lawmakers may face a smaller budget gap next year after a new revenue forecast found that last year’s federal tax law is cutting into state revenue less than previously expected. Legislative Council Staff now expects General Fund revenue to decline 1 percent to $17.01 billion in fiscal year 2025-26, an improvement of nearly $500 million from the March forecast. Revenue is then projected to grow 8.9 percent in fiscal year 2026-27. But the forecast still points to fiscal pressure from weaker corporate income tax collections, the effects of the One Big Beautiful Bill Act, inflation, tariffs, and higher state costs tied to federal policy changes.
State labor markets continue to vary widely. TPC’s State Economic Monitor shows that unemployment rates in May 2026 ranged from 2.1 percent in South Dakota to 6.1 percent in the District of Columbia. Manufacturing employment fell year over year in 35 states, underscoring uneven conditions across state economies. Leisure and hospitality employment also remained below May 2019 levels in West Virginia and 13 other states. The State Economic Monitor gives users the power to compare state trends over time across labor markets, prices, housing, revenue, and other economic indicators.
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