Saxon

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<p> Organizations that measure state tax and revenue changes often report

different numbers, resulting in confusion about the true magnitude of state

tax increases or reductions. Until 1998, NCSL reported tax changes two ways:

(1) the "baseline" method, which includes only statutory tax law changes

adopted in the most recent legislative session; and (2) the "taxpayer

liability" method, which measures the effect of tax changes on taxpayers and

the economy, without regard to when statutory changes were adopted. Under

the taxpayer liability method, a state that makes a multiyear tax rate

reduction would be credited with a tax reduction in each fiscal year that

the tax rate falls. </p>