revenue from sales taxes as well as taxes on the gambling and mining industries. South Dakota – no individual income tax but has a state franchise income tax on financial institutions. Tennessee – has no individual income tax. In 2014 voters approved an amendment to the state constitution prohibiting state or local governments from levying any income tax. Prior to January 1, 2021 Tennessee had the "Hall income tax", a tax on certain interest and dividend income from investments. Texas – no individual income tax but imposes a franchise tax on corporations. In May 2007, the legislature modified the franchise tax by enacting a modified gross margin tax on certain businesses (sole proprietorships and some partnerships were automatically exempt; corporations with receipts below a certain level were also exempt as were corporations whose tax liability was also below a specified amount), which was amended in 2009 to increase the exemption level. The Texas Constitution bans the passage of an income tax with a 2/3 majority of the legislature required to repeal the ban. Washington – no individual tax but has a business and occupation tax (B&O) on gross receipts, applied to "almost all businesses located or doing business in Washington." It varies from 0.138% to 1.9% depending on the type of industry. In July 2017, the Seattle City Council unanimously approved an income tax on Seattle residents, making the city the only one in the state with an income tax. It was subsequently ruled unconstitutional by the King County Superior Court. The Court of Appeals upheld that ruling and the Washington Supreme Court declined to hear the case, maintaining the tax as unconstitutional and unenforceable. In 2022, through the Long-Term Care Trust Act, Washington began taxing high-net-worth individuals once capital gains exceeded $250,000. Stakeholders advocating for adoption of this act include assisted living, adult family home, and nursing home providers; labor unions; area agencies on aging; businesses; the AARP, and more. Wyoming – no individual or corporate income taxes. States with flat rate individual income tax Eight states have a flat rate individual income tax: Colorado – 4.40% (2023) Illinois – 4.95% (July 2017) Indiana – 3.23% Counties may impose an additional income tax). See Taxation in Indiana Michigan – 4.25% (2016) (22 cities in Michigan may levy an income tax, with non-residents paying half the rate of residents) New Hampshire – has an Interest and Dividends Tax of 4%